Indian equity benchmarks Sensex and Nifty edged slightly higher on Monday, with gains in banking and IT stocks lifting sentiment, following recent central bank lending reforms. Traders remained cautious, however, as the broader market traded largely flat ahead of a packed quarterly earnings calendar.

The S&P BSE Sensex climbed 121.48 points, or 0.15%, to 81,328.65 at the open, while the NSE Nifty50 gained 44.20 points, or 0.18%, starting the day at 24,938.45. At around 9:30 AM, Sensex traded 70 pts or 0.09% higher at 81,278, whereas the Nifty50 rose 15 pts or 0.07% to 24,916

Shares of Bajaj Finance, Axis Bank, Bajaj Finserv, TCS and HCL Technologies led gains on the 30-stock Sensex, rising between 0.5% and nearly 2%.

Bank stocks drove the rally, with the sector up 0.44% following strong loan growth in the September quarter. HDFC Bank reported a 10% rise in advances for July-September, while Kotak Mahindra Bank saw a 15% increase in net loan disbursals during the period.

Broader market segments were more subdued, with mid-caps up 0.1% and small-caps gaining 0.3%.

Last week, both the Nifty and Sensex rose roughly 1%, buoyed by gains in banks and metals, alongside growing investor bets on a U.S. Federal Reserve rate cut later this month.In corporate news, Tata Capital, set to launch India’s largest IPO of 2025, opens for subscription today, with a price band set between Rs 310 and Rs 326 per share.

Expert views

“The positive sentiments triggered by the growth-stimulating monetary policy face headwinds from the continuing FII selling, but can be sustained by positive news on growth and corporate earnings for FY27, said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments, adding that growth is likely to remain strong, assisting in corporate earnings growth of above 15% in FY27.

“The market will be looking forward to a positive resolution of the U.S.-India trade tensions. A trade deal can turn out to be a trigger for a rally in the market. We will have to wait and watch for developments on this front,” said Vijayakumar.

“Fresh money flowing to the market is chasing domestic consumption themes like automobiles, financials and banking, telecom, aviation, metals, cement and digital platform companies. This trend is likely to sustain. The Q1 data on credit and deposit growth from Kotak Mahindra Bank look impressive,” Vijayakumar added.