Financials lead Indian stocks higher on earnings optimism; mid-caps hit record high

Indian shares rose on Monday, with mid-caps hitting a record high, as investors heralded a recovery in earnings after the September-quarter results wrapped up without any major disappointments.

The Nifty 50 rose 0.4% to 26,013.45, while the BSE Sensex advanced 0.46% to 84,950.95, both gaining about 2% in the last six sessions.

All 16 major sectors advanced. Small-caps rose 0.5% while mid-caps climbed 0.7% to a fresh record high.

“The market tone remains positive with benchmark indexes close to their record high levels and banking sector expected to do well,” said Aamar Deo Singh, senior vice president at Angel One.

The Nifty 50 is trading about 1% below its record high of 26,277.37 of September 2024, while small-caps are about 7% below their all-time highs.

Financials rose 0.6% and were the biggest contributors to the benchmarks’ gains. Analysts at JP Morgan said September quarter earnings mark “a turning point” in the return on assets trajectory of banks, with net interest margins bottoming out.

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Gains in financials were also supported by the Reserve Bank of India’s relief for export-oriented industries hit by U.S. tariffs.

The central bank has allowed eligible borrowers from these sectors to avail a moratorium on payment of all instalments due between September 1 and December 31, 2025.

While the measures underscore the regulator’s proactive, pro-growth stance and ease concerns about export-linked sectors such as textiles, they are also positive for lenders, two analysts said.

Tata Motors Passenger Vehicles fell 4.7% after the company cut its fiscal year 2026 margin forecast for U.K.-subsidiary Jaguar Land Rover.

Hero MotoCorp gained 4.7% to a 14-month high in a post-earnings surge.