India Stocks: HDFC Bank, Axis Bank lead rise in Indian shares after Q1 updates
INDIA STOCKS-HDFC Bank, Axis Bank lead rise in Indian shares after Q1 updates Updates for morning trade
By Bharath Rajeswaran and Vivek Kumar M
July 6 (Reuters) - Indian shares advanced on Monday, led by HDFC Bank and Axis Bank on strong quarterly business updates, while lower crude oil prices also aided sentiment.
The benchmark Nifty 50 .NSEI rose 0.48% to 24,385.4, while the BSE Sensex .BSESN added 0.5% to 78,146.72, as of 10:11 a.m. IST.
The Nifty and Sensex have logged four straight weekly gains in their longest winning streak of 2026, rising 3.9% and 4.7% respectively, supported by lower oil prices as U.S.-Iran peace efforts persist and concerns over a near-term U.S. rate hike ease.
Twelve of the 16 major sectors logged gains. High-weight banks .NSEBANK and financials .NIFTYFIN rose 0.7% each.
HDFC Bank HDBK.NS climbed 2.7% after reporting a 15.4% increase in gross advances during the June quarter. Axis Bank AXBK.NS gained 1.7% after its business update over the weekend reflected 18.8% growth in gross advances.
Kotak Mahindra Bank KTKM.NS lost 3.4% after posting a sequential moderation in both loan and deposit growth.
"Most of the banks which reported June quarter provisional numbers have met or exceeded our estimates, with the exception of Kotak and RBL," said Piran Engineer, senior research analyst at CLSA.
"While overall growth has been strong, we remain watchful of the granularity within loan book expansion and potential impact of declining CASA ratios on margins," Engineer said.
A narrowing in rainfall deficit to 24% as of July 5 from 40% at the end of June as India's crucial monsoon season progresses, and a likely moderation in foreign outflows will be key for the South Asian nation's markets in the near-term as the Iran war's impact on corporate earnings unfolds, analysts at Equinomics Research, Shriram Life Insurance and Lighthouse Canton said.
Foreign portfolio investors purchased stocks worth 13.55 billion rupees ($142.32 million) on Friday, provisional data showed, marking a third consecutive session of net buying.
Among stocks, Nykaa-parent FSN E-Commerce FSNE.NS gained 2.3% after its quarterly business update suggested sustained momentum in revenue growth.
(Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Ronojoy Mazumdar)