Private banks lead India stock benchmarks higher at open

India’s equity benchmarks opened higher on Thursday, driven by gains in private banks after Axis Bank posted better-than-expected net interest margins and a pickup in loan and deposit growth.

The Nifty 50 rose 0.39% to 25,422.80, while the BSE Sensex added 0.41% to 82,938.89 as of 9:30 a.m. IST.

Fifteen of the 16 major sector logged gains at open. Private banks climbed 1%, led by a 3% jump in Axis Bank.

Although the private lender posted a larger-than-expected drop in September-quarter profit, several analysts pointed to improved operating performance and asset quality as positive factors.

The broader small-caps and mid-caps gained 0.6% and 0.2%, respectively.

The two highest weighted stocks - HDFC Bank and ICICI Bank - advanced 0.6% each, while the third heaviest stock, Reliance Industries, added 0.5%.

The three companies will report their quarterly results later in the week.