Market Soars Again: Sensex Gains Over 350 Points as HDFC Bank, ICICI, Tata Motors Lead Rally
Sensex gains over 350 points led by HDFC Bank, ICICI Bank, and Tata Motors. Indian stock market rally continues amid strong earnings and foreign inflows.
NewsSutra
Indian Stocks Extend Winning Streak; Sensex Jumps Over 350 Points on Banking and Auto Boost
Mumbai, July 28, 2025 – The Indian stock market extended its bullish momentum for the third consecutive session today, with the benchmark BSE Sensex surging by 357 points to close at 74,865, driven by robust gains in heavyweight stocks like HDFC Bank, ICICI Bank, Tata Motors, and Larsen & Toubro (L&T). Strong corporate earnings, foreign institutional inflows, and improved global cues helped push the index higher.
The Nifty 50, India’s broader benchmark index, also advanced by 112 points to settle at 22,755, closing near its all-time high. Analysts attributed the rally to positive domestic sentiment, continued foreign inflows, and optimistic investor expectations ahead of key policy decisions.
Top Contributors: Banking and Auto Sectors Power the Surge
HDFC Bank was among the top gainers today, jumping over 2.4% during the session. The banking major saw strong buying interest following reports of sustained loan growth and improving margins in its Q1 FY26 results.
Similarly, ICICI Bank surged nearly 1.8%, backed by upbeat analyst calls and confidence in the bank’s retail lending portfolio performance. Analysts note that large private sector lenders are seeing a recovery in net interest margins and asset quality.
Another standout performer was Tata Motors, which rallied by over 3.2%. The auto giant benefited from robust demand in both domestic and export markets, especially in the electric vehicle (EV) and commercial vehicle segments. Recent announcements around EV capacity expansion and better-than-expected JLR performance have supported the stock.
Larsen & Toubro (L&T) also joined the party, climbing 2.1% amid fresh infrastructure orders and strong forward-looking guidance. With India’s infrastructure spending seeing consistent allocation, L&T continues to attract long-term investors.
Sector-wise Performance:
-
Banking & Financials: Led by HDFC Bank, ICICI Bank, and Axis Bank, the financial services sector rose by 1.7%.
-
Automobiles: Tata Motors, Mahindra & Mahindra, and Maruti Suzuki gained between 2-3% on firm sales forecasts.
-
Capital Goods & Infrastructure: L&T, Siemens, and ABB saw fresh buying ahead of expected infrastructure announcements in the upcoming parliamentary session.
-
IT Sector: While most tech stocks remained flat, Infosys and Wipro ended marginally in the green, showing some recovery signs after recent corrections.
Foreign Institutional Investors (FIIs) Drive Sentiment
Data from the National Stock Exchange (NSE) reveals that foreign institutional investors (FIIs) have been net buyers for the past five trading sessions, injecting over ₹6,400 crore into Indian equities. Renewed optimism around India’s macroeconomic stability, falling inflation trends, and strong earnings outlook have drawn global fund managers back into the fold.
Domestic institutional investors (DIIs) have also maintained a steady buying interest, reflecting continued retail participation through mutual funds and SIPs.
Global Cues Supportive
Asian markets traded mostly in the green today, buoyed by hopes that the U.S. Federal Reserve might delay any further interest rate hikes amid signs of cooling inflation. The Nikkei 225, Hang Seng, and Shanghai Composite indices all registered mild gains.
U.S. stock futures also indicated a higher opening on Wall Street later today, which further supported Indian investor sentiment.
Rupee and Bond Market Update
The Indian Rupee appreciated marginally to close at ₹82.65 against the U.S. Dollar, supported by FII inflows and softening crude oil prices. On the bond front, the yield on the 10-year benchmark government bond stood stable at 7.12%, suggesting no immediate concern over inflation or fiscal stress.
Expert Commentary
“The rally has strong legs. We are seeing broad-based participation across sectors, especially banking, auto, and capital goods. With FIIs back in buying mode and no immediate macroeconomic red flags, we expect the momentum to continue in the short term,” said Anil Shah, Fund Manager at Motilal Oswal AMC.
“Q1 results have been broadly in line with expectations. Banks and auto companies are leading from the front, and we believe there is further upside left in large-cap banking names like HDFC Bank and ICICI Bank,” said Neha Agarwal, Senior Research Analyst at Kotak Securities.
What to Watch Ahead
Investors will be closely watching the following:
-
U.S. Federal Reserve’s comments later this week
-
Monsoon progress and Kharif sowing data
-
Remaining Q1 earnings reports from key mid-cap and FMCG firms
-
Any update on the Government’s CAPEX push during the upcoming Parliament session
Additionally, the Reserve Bank of India’s (RBI) monetary policy meeting scheduled for early next month will be crucial in setting the direction of interest rates and liquidity in the market.
Midcap and Smallcap Rally Gains Steam
The bullish sentiment was not restricted to large-cap stocks. The Nifty Midcap 100 index climbed 1.4%, while the Nifty Smallcap 100 gained nearly 1.8% during the session. Stocks like Bharat Forge, Ashok Leyland, and JBM Auto saw significant volumes, suggesting renewed interest from retail and high net-worth investors.
Market Breadth and Technical Indicators
The market breadth was decisively positive with 1,724 stocks advancing, 712 declining, and 94 remaining unchanged on the NSE. The Relative Strength Index (RSI) for Nifty is hovering near 68, just below the overbought zone, suggesting there is still room for upward movement.
The 50-day moving average (DMA) and 200-DMA for Nifty and Sensex continue to trend upward, which is technically a bullish signal for medium-term investors.
Closing Bell: Key Index Summary
| Index | Close | Change (Points) | Change (%) |
|---|---|---|---|
| BSE Sensex | 74,865 | +357 | +0.48% |
| NSE Nifty 50 | 22,755 | +112 | +0.49% |
| Nifty Bank | 49,210 | +398 | +0.82% |
| Nifty Auto | 17,865 | +362 | +2.07% |
| Nifty Midcap | 47,020 | +654 | +1.41% |
Investor Takeaway
The continued momentum in Indian equities highlights growing investor confidence in the economy’s fundamentals. While global headwinds remain, especially from interest rate volatility and geopolitical developments, the domestic narrative remains strong.
With major corporate earnings exceeding expectations and sectors like banking, auto, and infrastructure poised for growth, many experts believe that the Sensex could soon cross the 75,000 mark, provided the global environment remains stable.
Short-term traders are advised to keep an eye on resistance levels near 22,800 for the Nifty and maintain strict stop losses, while long-term investors can use any dips as opportunities to accumulate fundamentally strong large-cap stocks.
