Indian Markets Snap 5-Day Losing Streak: ICICI Bank's Stellar Q2 Results Drive Banking Rally
Sensex surges 603 points and Nifty reclaims 24,300 as banking stocks lead a massive comeback on Monday, October 28, 2024. ICICI Bank's 14.5% profit jump and improving asset quality spark investor confidence after a brutal week of losses.
Monday, October 28, 2024, marked a much-needed breather for Indian stock markets. After bleeding for five consecutive sessions, the benchmark indices staged a spirited comeback, with banking heavyweights leading the charge. The BSE Sensex surged 602.75 points (0.76%) to close at 80,005.04, while the Nifty50 climbed 158.35 points (0.65%) to settle at 24,380.80.
The rally was no accident. Strong quarterly earnings from ICICI Bank, combined with bargain hunting after last week’s brutal selloff and easing crude oil prices, created the perfect storm for a recovery.
ICICI Bank Emerges as the Star Performer
The headline story of the day was undoubtedly ICICI Bank’s blockbuster Q2 FY25 results, announced on Saturday, October 26.
Key Financial Highlights:
- Net Profit: ₹11,745.9 crore, up 14.5% YoY
- Net Interest Income (NII): ₹20,048 crore, up 9.5% YoY
- Gross NPA: Improved to 1.97% from 2.15% in Q1 FY25
- Net NPA: Stable at 0.42%
- Domestic Loan Growth: Strong 15.7% YoY expansion
ICICI Bank shares surged 3.1%, becoming the top Sensex gainer and injecting much-needed confidence into the broader market.
Broad-Based Recovery Across Sectors
All 15 sectoral indices on the NSE ended in the green, signaling a genuine shift in sentiment.
Top Performing Sectors:
- Nifty PSU Bank: +3.78%
- Nifty Metal: +2.54%
- Nifty Pharma: +1.2%
- Nifty Media: +1.1%
- Nifty Realty: +1.0%
The Losers: Not Everyone Celebrated
Some heavyweights struggled:
- Coal India: -3.76%
- Bajaj Auto: -2.07%
- Axis Bank: -1.29%
- Hero MotoCorp: -1.19%
- BEL: -0.92%
IndiGo’s Turbulence
InterGlobe Aviation (IndiGo) posted a ₹986.7 crore loss due to aircraft groundings and high fuel costs. Shares fell 10% to ₹3,929.50.
What Drove the Recovery?
- Strong banking earnings
- Bargain hunting after a deep correction
- Easing crude oil prices
- Technical pullback from oversold levels
FII & DII Activity
- FIIs: Net sellers of ₹55.58 crore (20th straight session)
- DIIs: Net buyers of ₹2,492.12 crore supporting markets
What This Means for Retail Investors
- Banking stocks remain attractive
- Diversify to reduce volatility
- Avoid panic selling — stay invested
- Earnings drive stock performance
What to Watch Next
| Factor | Impact |
|---|---|
| Nifty resistance at 24,567 | Needs breakout for new rally |
| More Q2 earnings ahead | Could drive momentum |
| FII selling trend | Needs reversal |
| Crude oil & Fed policy | Key global cues |
| Rupee around 84.07 per USD | Watch import cost impact |
Technical Levels to Track
- Nifty: Support 24,073–24,135 / Resistance 24,500–24,567
- Sensex: Support 79,000 / Resistance 80,500–81,000
Bottom Line
Monday’s rally was fueled by strong fundamentals — particularly ICICI Bank’s performance. But volatility may persist due to FII outflows and mixed global signals.
Stay focused on high-quality businesses and maintain diversification.
Disclaimer:
This article is only for information purposes and is not investment advice. Please do your own research before investing.
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