Sensex Soars 400 pts, Nifty Above 25,050: Buying in ICICI, HDFC Bank Among Key Factors Behind Market Rise
Mumbai, July 21, 2025 — The Indian stock markets witnessed a strong rebound on Monday, with the BSE Sensex surging over 400 points and the NSE Nifty crossing the crucial 25,050 mark. The rally was driven by robust buying in banking heavyweights like ICICI Bank and HDFC Bank, coupled with positive global cues and investor optimism surrounding upcoming corporate earnings.
Market Overview
The BSE Sensex jumped 417.89 points or 0.55% to close at 82,140.62, while the NSE Nifty 50 climbed 129.85 points or 0.52% to settle at 25,078.10. Both benchmark indices recovered from the cautious trend seen last week amid geopolitical concerns and mixed corporate results.
The broader markets also participated in the rally. The Nifty Midcap 100 and Smallcap 100 gained around 0.7%, reflecting strength in investor sentiment across sectors.
Key Drivers Behind the Market Rally
1. Strong Buying in ICICI Bank and HDFC Bank
ICICI Bank and HDFC Bank emerged as top contributors to the Sensex and Nifty gains. Shares of ICICI Bank rose 1.9% ahead of its Q1 FY26 earnings announcement, with analysts expecting stable asset quality and healthy loan growth. HDFC Bank also advanced by 1.4%, supported by buying interest from both domestic and foreign institutional investors.
The banking sector as a whole saw strong momentum, with the Nifty Bank index rising 0.8%, indicating bullish outlook on India’s financial sector amid declining inflation and expectations of stable interest rates.
2. Positive Global Market Sentiment
Asian markets traded in the green after a positive handover from Wall Street, where the Dow Jones and S&P 500 closed at record highs. Optimism surrounding cooling inflation in the U.S. and expectations that the U.S. Federal Reserve may cut interest rates later this year have improved risk appetite globally.
Investors were also buoyed by data indicating that China’s Q2 GDP beat expectations, offering hopes for a more stable global economic outlook — a factor that benefits emerging markets like India.
3. FII Buying and Liquidity Support
Foreign Institutional Investors (FIIs) continued to show confidence in Indian equities. Provisional data from stock exchanges indicated a net inflow of ₹2,134 crore by FIIs on July 19, reversing the outflows seen earlier this month.
Market participants believe that consistent FII buying, backed by improving macroeconomic indicators, could sustain market momentum in the near term.
4. Stability in Crude Oil Prices and INR
Global crude oil prices remained steady, with Brent crude trading below $84 per barrel, bringing relief to inflationary pressures in India. A relatively stable Indian Rupee, which closed near ₹83.05/$, also helped ease import-related concerns and supported broader market sentiment.
5. Anticipation of Strong Q1 Earnings
Market participants are looking forward to robust earnings from India Inc. across sectors. With major IT, banking, and FMCG companies scheduled to report results this week, early signs indicate steady growth, especially in banking, automobile, and energy sectors.
Expectations of strong performance from Reliance Industries, Infosys, and Axis Bank are further supporting bullish sentiment.
Sectoral Performance
Apart from banking, the rally was broad-based:
- Auto stocks like Tata Motors (+2.5%), Bajaj Auto (+1.9%), and Maruti Suzuki (+1.2%) were in the green on the back of robust monthly sales forecasts and expectations of lower input costs.
- IT stocks saw selective buying. Infosys and Wipro gained over 1% amid hopes of recovery in U.S. tech spending.
- FMCG sector was muted due to rural demand concerns, with ITC and HUL showing marginal losses.
- Metal and Realty stocks ended on a mixed note.
Top Gainers and Losers
| Top Gainers (Nifty 50) | % Change |
| ICICI Bank | +1.90% |
| Tata Motors | +2.50% |
| Bajaj Auto | +1.90% |
| HDFC Bank | +1.40% |
| Infosys | +1.20% |
| Top Losers (Nifty 50) | % Change |
| ITC | -0.75% |
| Hindalco | -0.60% |
| Britannia | -0.45% |
| Divi’s Labs | -0.40% |
Expert Commentary
According to V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
“Today’s rally reflects the resilience of the Indian market backed by banking strength and optimism over Q1 results. Continued FII inflows and expectations of a rate cut by the U.S. Fed are adding to the positive mood.”
Motilal Oswal Financial Services noted in a report:
“With Nifty sustaining above 25,000, the short-term trend remains positive. The upcoming earnings season and macroeconomic data will determine if the rally has legs.”
Outlook Ahead
Going forward, market analysts expect some volatility ahead of key earnings and global central bank decisions. However, the underlying bullish sentiment remains intact due to India’s stable macroeconomic fundamentals, easing inflation, and resilient corporate performance.
Investors are advised to remain cautious but optimistic, keeping an eye on sectoral rotation and stock-specific developments.
Conclusion
The sharp 400-point rise in the Sensex and the Nifty moving past the 25,050 mark signals renewed investor confidence in India’s equity markets. Backed by heavyweight banks like ICICI and HDFC Bank, strong institutional inflows, and a supportive global backdrop, Indian markets are poised for continued upward momentum — albeit with short-term profit booking likely.
I am a digital marketing executive as well as content writer in the stock market and crypto related blogs. My goal is to provide simple, interesting and reliable information to readers through my articles so that they always stay updated with the world of stock market and crypto.
