Markets stage bounce back: NIFTY50 & SENSEX jump over 1%, ICICI Bank top index mover

The Indian equity benchmark indices opened higher on Monday, with frontline indices surging over 1%. After initial volatility, India VIX cooled off from the day’s high to slip into negative terrain as a result, the frontline indices traded firm. By midday, NIFTY50 and SENSEX were trading near the day’s high, gaining over 1.23% and 1.37%, respectively. The Nifty Bank jumped over 1.5% above the level of 51,500.

Top factors for bounce back

Sharp fall in crude oil prices

The brent crude oil prices fell nearly 5% on Monday morning after supply of crude oil prices remains strong despite attacks on Iran by Israel over the weekend. The attack is seen as presumptive tactics to bring Iran to the table for discussion. Which could lead to de-escalation in the situation in the Middle East. Following the development, the brent crude oil prices fell to $72.1 per barrel on Monday morning

Strong earnings by ICICI Bank

ICICI Bank reported strong set of numbers over the weekend for th Q2FY25. The net profit for the quarter jumped over 14% YoY to ₹11,746 crore. The net interest income rose by 9.5% YoY ₹20,048 crore. In addition, the asset quality improved as NNPA's moderated to 0.42% as compared to 0.43% in the previous year similar quarter. Following the strong results, shares of ICICI Bank remained top gainer with 3.3% gains and top index puller for NIFTY50 by +77 points and other index heavyweights like Reliance Industries (+18 points), M&M (+18 points ) too contributed to relief bounce back on Monday.

The NIFTY50 bounced back above the 24,450 mark after five consecutive sessions of losses, as ICICI Bank's better-than-expected quarterly profit led the heavyweight financials sector higher.

The NIFTY50 and SENSEX have declined around 7.5% from their peak on September 27, dragged down by foreign selling over the past 20 sessions and a generally disappointing earnings season to date.

The NIFTY50 market breadth was on the bull side, with 38 stocks advancing and 12 stocks declining. The overall market breadth also displayed recovery signs compared to the previous trading session, as 779 stocks declined while 1,880 stocks advanced.

The broader indices traded with modest gains, with the Nifty Midcap 100 index up by 0.75%, while the Nifty Smallcap 100 index jumped by 1.27%. Among the sectoral indices, all sectoral indices were trading in green. The Nifty PSU Banks gained more than 3%, Nifty Metals jumped 2.35% and Nifty Media surged by 1.96%.