Indian Markets Rally for Fifth Straight Session as Banking and Midcap Stocks Lead the Charge

Market Performance

On April 21, 2025, Indian equity benchmarks extended their gains for a fifth consecutive session. The Nifty 50 advanced by 1.16%, closing at 24,129 points, while the Sensex rose 1.11%, ending the day at 79,421 points.

The broader markets outshined the frontline indices:

• Nifty Midcap 100 gained 2.55%, ending at 53,998 points
• Nifty Smallcap 100 rose 2.26%, closing at 16,781 points

Out of the 13 major sectoral indices, 12 ended in the green. Nifty PSU Bank led the gains with an increase of 2.49%, followed by Nifty Realty, Oil & Gas, IT, and Metal, which rose between 2% and 2.37%. However, Nifty FMCG declined by nearly 1%, pulled down by ITC, HUL, and Varun Beverages stocks.

Main News

Several factors contributed to the rally in the Indian stock markets:

1. Quarterly Results from Major Banks

Strong fourth-quarter financial results from top private banks supported market sentiment. Notably, HDFC Bank and ICICI Bank reported robust performance, while Yes Bank also posted a sharp rise in profitability.

2. Positive Economic Indicators

A resilient outlook for the Indian economy amid global uncertainties has added confidence among market participants. India’s consistent growth prospects and stable macroeconomic environment are key strengths.

3. India-US Trade Discussions

Expectations of progress in bilateral trade negotiations between India and the United States were reinforced by the arrival of the US Vice President for a four-day official visit. The two nations are reportedly working toward concluding a trade deal before the July deadline.

4. Inflation and Monetary Policy Expectations

India’s Consumer Price Index (CPI) inflation moderated to 3.3% in March 2025, primarily driven by a decline in food prices. Market participants anticipate that inflation will remain near the RBI’s 4% target for much of FY2026, raising expectations of potential interest rate cuts later in the year.

Company Details

HDFC Bank Share Price

HDFC Bank witnessed an upward movement following the release of its Q4 FY25 results.

Financial Performance (Standalone Q4 FY25):

• Net Profits: ₹17,616 crore, up 6.7% YoY and 5.3% QoQ
• Asset Quality: Gross NPA ratio improved to 1.33% as of March 31, 2025, from 1.42% in the previous quarter

Yes Bank Share Price

Yes Bank shares rose after reporting a strong quarterly performance.

Financial Performance (Standalone Q4 FY25):

• Net Profits: ₹738 crore, up 63% YoY (from ₹452 crore)
• Provisions and Contingencies: ₹318 crore, down 32.5% YoY

Other Notable Stock Movements

• Kalpataru Projects International surged 13.5%, becoming the top gainer in the Nifty 500 index
• Just Dial, Vodafone Idea, KFIN Technologies, Suzlon Energy, Tata Elxsi, AU Small Finance Bank, and Aavas Financiers also recorded gains of over 4%
• Suzlon Energy shares rose nearly 5% following a government draft proposing local sourcing mandates for wind turbine components

Summary

Indian stock indices extended their gains on April 21, sustaining the ongoing upward trend, supported by strong corporate earnings, especially from private banks, and favorable macroeconomic indicators. Optimism around trade negotiations with the US and expectations of policy easing due to contained inflation also played a key role. Broad-based participation was evident, with mid-and smallcap stocks outperforming the larger indices. Among sectors, banking, IT, auto, and energy stocks led the gains, while FMCG remained under pressure.