Axis Bank and Nestle India Lead Indian Stock Market Rally

Indian shares continued their winning streak for the fifth consecutive session on Thursday, driven by positive post-earnings performances from key benchmark constituents like Axis Bank and Nestle India. However, Kotak Mahindra Bank faced a setback after being prohibited by the central bank from acquiring new clients digitally.

The NSE Nifty 50 climbed by 0.75% to reach 22,570.35, while the S&P BSE Sensex also saw a gain of 0.66% to close at 74,339.44. Initially opening lower by 0.4%, both indices managed to reverse the early losses throughout the day.

Axis Bank experienced a significant surge of 6%, marking its highest single-day percentage gain in 18 months, following better-than-expected quarterly profit results. This positive momentum in the banking sector has raised hopes for a robust earnings season, as noted by market experts.

Nestle India also contributed to the market rally with a 2.5% increase after reporting a larger-than-anticipated rise in quarterly profit. The company's collaboration with Dr. Reddy's Laboratories to develop nutraceuticals and supplements further boosted investor confidence, leading to a 5% rise in Dr. Reddy's stock.

Despite these gains, Kotak Mahindra Bank faced a significant setback, plummeting by 10.87% after the RBI's decision to restrict its digital banking operations due to technical system failures. This move allowed Axis Bank to surpass Kotak Mahindra Bank in market capitalization, securing the third position among private banks.

The public sector bank index also saw a notable increase of 3.77%, driven by State Bank of India's record surge of 5.12% to an all-time high. However, Hindustan Unilever experienced a slight decline of 1.3% after falling short of quarterly profit expectations.

In conclusion, the Indian stock market displayed resilience and optimism, supported by strong performances from key players in the banking and consumer sectors. While challenges persist, the overall sentiment remains positive as investors look forward to a promising earnings season ahead.