Sensex jumps 950 points, Nifty 50 ends above 24,300, driven by Reliance, HDFC Bank, ICICI Bank shares

The Indian stock market benchmarks, the Sensex and the Nifty 50, jumped on Friday, 17 July, largely due to healthy gains in shares of Reliance Industries and private bank heavyweights ahead of their Q1 results.

Index heavyweights Reliance Industries, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and Axis Bank powered the benchmarks even as mid and small-cap segments remained under pressure amid escalating US-Iran tensions and higher crude oil prices.

Sensex jumped 965 points, or 1.25%, to close at 78,151.45, while Nifty 50 jumped 262 points, or 1.09%, to end at 24,334.30.

On the other hand, the Nifty Midcap 100 index slipped 0.41%, and the Smallcap 100 index dropped 0.21%.

Meanwhile, crude oil benchmark Brent crude jumped nealry 2% to trade above $85 per barrel as the Middle East conflict intensifies.

The outperformance of benchmark indices can be attributed to the expectations of strong Q1 results from index heavyweights, including Reliance Industries, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and Axis Bank.

Reliance shares ended 2.5% higher, while those of HDFC Bank, ICICI Bank, and Axis Bank rose between 1.5% to 2.5%.

In the Nifty 50 index, as many as 37 stocks ended higher, with Reliance, Jio Financial Services, Tech Mahindra, ICICI Bank, Axis Bank, and HDFC Bank as the top gainers.

On the flip side, shares of Hindalco Industries, Dr. Reddy's Laboratories, and Wipro ended as the top laggards in the index.

Bank Nifty jumped 1.6%, while the Nifty Private Bank index soared 2.12%. Nifty IT also clocked a strong gain of 1.75%, while Auto (up 1.24%) and Financial Services (up 1.31%) also rose significantly.

Reliance will report its Q1 results in the evening today (17 July), while major private banks, such as HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, and Axis Bank will report their June quarter earnings tomorrow (Saturday, 17 July).

Vinod Nair, the head of research at Geojit Investments, pointed out a shift in market momentum, with strong traction moving toward large-cap stocks, led by the IT and banking sectors.

"This is supported by optimism around business updates and Q1 earnings expectations. The trend appears to be driven largely by domestic institutional investors rotating out of expensive mid- and small-cap stocks and into more attractively valued large caps that offer a better risk-reward profile," said Nair.

Moreover, Nair added that buying interest is emerging in consumer durables on expectations of healthy domestic demand in the second half of FY27.

"The broader market remains constructive, with a combination of selective profit booking and buying, as the overall outlook for India continues to improve," said Nair.

Banking sector Q1 results preview

Experts expect private sector banks to report healthy numbers.

As brokerage firm Anand Rathi Share and Stock Brokers highlighted, the sectoral credit growth of Indian banks remained strong at nearly 17.7% year-on-year (YoY), led by industrial and gold loans, and continued deposit growth (nearly 12% YoY) as of 15 June 2026.

"FCNR (B) inflows are expected to support deposit growth from Q2FY27E onwards. We expect NII across our coverage universe to grow nearly 11% YoY in Q1FY27, while asset quality and credit cost are likely to remain stable (except for seasonal stress in agriculture, KCC and MFI). Lower bond yields are expected to support treasury gains and overall earnings," said Anand Rathi.

Brokerage firm Motilal Oswal Financial Services estimates private banks’ PAT to grow by 10.1% YoY but decline by 1.7% QoQ, and PSU banks’ PAT to grow by 9% YoY and decline by 6.6% QoQ. Moreover, it estimates nearly 20% earnings CAGR over FY26-28 for private banks.

"Large private sector banks have undergone one leg of re-rating. Faster rate transmission on liabilities and easy liquidity conditions will create a transient decline in NIMs. Asset quality impact from unsecured loans/MFI is concerning but relatively low. Valuations are at fair levels, especially given that there is room for positive earnings surprises in FY27," said Tata Mutual Fund.

Reliance Q1 results preview

Reliance's Q1 earnings may exhibit resilience. Strength in its oil-to-chemicals (O2C) and telecom businesses is likely to offset weakness in retail and upstream operations.

Motilal Oswal expects Reliance's Q1 revenue to rise by 26.3% YoY, while consolidated EBITDA is expected to rise 8% YoY. EBITDA margins, however, may ease to 15% from 17.6% YoY, as per the brokerage firm.

Kotak Institutional Equities estimates Reliance's consolidated EBITDA to rise by 8.4% YoY and 5.4% QoQ, while EBITDA margin may shrink by 317 bps YoY and 57 bps QoQ. Net sales may rise 32.1% YoY and 9.5% QoQ, said Kotak.

Stock market setup

On the domestic front, Q1 earnings will be the key market trigger, driving sector- and stock-specific movements. However, developments in the Middle East and fluctuations in crude oil prices will remain crucial, as they are likely to influence expectations around interest rates, corporate earnings, inflation, and the country's broader macroeconomic outlook.

Tata Mutual Fund expects Nifty earnings to grow 15–17% in FY27, supported by an improving macroeconomic environment.

"Nifty valuations have moderated below their long-term averages, providing a supportive backdrop for equity returns over the next 12–18 months. India's long-term equity outlook continues to be supported by an improving investment cycle, credit growth, manufacturing tailwinds, real estate recovery and stronger banking fundamentals. Strong domestic institutional inflows continue to support Indian equities despite persistent FII outflows," Tata Mutual Fund noted.

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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.