Equities Continue Uptrend; HDFC Bank Hits ₹15 Trillion M-Cap

HIGHLIGHTS

• Maharashtra moves to shut Ola Electric’s unlicensed stores, seize vehicles
• Gold hits ₹100,000 mark per 10 grams
• 360 ONE WAM buys UBS' India wealth business, Swiss giant picks up warrants amounting 4.95% in company
• HDFC Bank becomes third Indian company to achieve ₹15 trillion market cap

Indian equities extended their upward momentum today, marking the sixth consecutive session of gains. Market sentiment remained positive, supported by strength in financials, FMCG, and real estate sectors.

Banking stocks led the rally, with the Nifty Bank index advancing 343 points to close at a record high of 55,647 for the second straight session. Major constituents such as HDFC Bank, ICICI Bank, and Kotak Mahindra Bank continued to attract strong buying interest, reflecting sustained investor confidence in the sector’s earnings momentum and asset quality outlook.

SECTORAL PERFORMANCE 
The FMCG sector gained on the back of favourable brokerage upgrades. Stocks like ITC and HUL saw notable gains, with ITC rising nearly 2%, following positive commentary on rural demand recovery and stable input costs.

Steel stocks ended higher amid 12% safeguard duty. However, major producers still closed in positive territory, supported by expectations of strong infrastructure-led demand.

Real estate stocks were among the top sectoral performers, rising between 2% and 4%. The gains were driven by continued optimism around the sector, underpinned by rising residential demand, declining inventory levels, and supportive policy measures.

Top Gainers	% Change	Top Losers	% Change
NIFTY REALTY	2.4%	NIFTY IT	-0.6%
NIFTY FMCG	1.9%	NIFTY OIL & GAS	0.0%
NIFTY CONSUMER DURABLES	1.5%
NIFTY HEALTHCARE INDEX	0.8%
NIFTY PSU BANK	0.8%

Indian government bond yields ended flat on Tuesday, as early rise driven by global cues were offset by local demand and expectations of a supportive monetary policy stance from the Reserve Bank of India. 

The benchmark 10-year bond yield closed marginally higher at 6.3201%, compared to its previous close of 6.3164%. 

Gilt yields initially rose in tandem with the movement in US Treasury, which climbed amid heightened political noise in the US, particularly concerns over reported attempts by President Donald Trump to replace Federal Reserve Chair Jerome Powell. This triggered a global reassessment of rate expectations and led to a broader risk-off sentiment in early trade.

After market hours on Monday, the RBI released its final guidelines on liquidity management, introducing an additional 2.5% buffer requirement on digitally accessible retail deposits. This was a downward revision from the earlier proposed 5% in July 2023. While the reduced buffer eases some regulatory pressure, the move could slightly temper demand for bonds from banks, particularly in the short term, as institutions adjust to the revised norms.

Tenure	Today	Previous
10-year Gilt	6.32%	6.32%
5-year gilt	6.06%	6.07%
5-year OIS	5.64%	5.63%

The Indian Rupee ended its five-session winning run on Tuesday, closing slightly weaker amid rising global crude oil prices and a rebound in the dollar index. The currency slipped 6 paise to settle at 85.19 against the US dollar, compared to 85.13 in the previous session.

Despite this minor decline, the rupee has appreciated by approximately ₹1.5 over the past six trading sessions, supported by foreign inflows and a broadly weaker dollar. 

One of the key influences on the rupee’s performance was the depreciation of the Chinese yuan, which dragged down other regional currencies. The yuan weakened after the People's Bank of China set a lower-than-expected daily reference rate.

Meanwhile, oil prices continued their upward trend, adding pressure on the rupee due to India’s status as a major crude importer. Rising energy costs typically widen the trade deficit and weigh on the currency.

Unit	Today	Previous
Dollar/Rupee	85.19	85.13
Dollar Index	98.16	98.04
1-year Dollar/rupee premium (%)	2.03%	2.05%

OUTLOOK
Equities may open on a positive note on Wednesday, backed by sustained momentum in key sectors. The equity rally is likely to continue, particularly in banking, where the Nifty Bank index may extend its record-setting run, driven by investor interest in HDFC Bank, ICICI Bank, and other heavyweights. 

Midcap and small-cap stocks should also see continued participation, as robust earnings and favourable policy cues support bullish sentiment. However, given the recent string of gains, markets may witness brief profit-taking or consolidation, especially if earnings from auto and mid-tier financial stocks disappoint.

In the bond market, government securities are expected to trade in a narrow range. The Indian Rupee may trade with a slight downside bias after breaking a five-session winning streak. Rising crude oil prices and a firmer dollar index could exert pressure, though strong foreign inflows may provide partial support. 

Key Events & Data Due Wednesday:
Economic Data

• India April provisional PMI data
• Eurozone February trade data
• US April provisional PMI data
• US weekly crude inventory data

Corporate Actions

• Jan-Mar Earnings:  Tata consumer products, Bajaj Housing Finance, Den Networks, 
  Khaitan Chemicals & Fertilizers, Tata Teleservices (Maharashtra), Can Fin Homes, 
  Filatex India, LTIMindtree, Maharashtra Scooters, Rallis India, Supreme Petrochem, 
  Syngene International, Thyrocare Technologies, Tamilnad Mercantile Bank, 
  Wendt (India), 360 ONE WAM, Dalmia Bharat, Eimco Elecon (India), and Mangalam Global Enterprise, 
• Biocon board to consider fund raising plans
• Housing & Urban Development Corp board to consider fund raising plans
• NHPC board to consider fund raising plans
• Swan Defence and Heavy Industries board to consider fund raising plans

Policy Events

• Minutes of RBI MPC April meeting
• US Fed Waller Speaks  
• US Beige Book release