Sensex, Nifty hit one-year highs lifted by energy, banking stocks

The stock market ended higher on Monday, with benchmark indices hitting fresh one-year highs, supported by strong gains in energy and select banking stocks even as heavyweight lenders slipped post-earnings.

The NSE Nifty 50 rose 133 points to close at 25,843, while the S&P BSE Sensex gained 411 points to end at 84,363.

The Nifty Bank index advanced 320 points to 58,033, and the broader midcap index outperformed, rising 442 points to 59,345. Market breadth remained positive, with the NSE advance-decline ratio at 3:2.

"The continued buoyancy in the banking pack, coupled with rotational buying across other sectors, is driving the index higher with each passing session. As the Nifty approaches the 26,000 mark, some consolidation cannot be ruled out before a fresh breakout; however, the overall bias remains positive, with immediate support around 25,650 and major support near 25,450. We recommend maintaining a “buy on dips” approach, focusing on large-cap and quality midcap stocks that are showing consistent relative strength," Ajit Mishra – SVP, Research, Religare Broking, said.

Public sector banks rallied after recent quarterly results, led by gains in AU Small Finance Bank, Federal Bank, and IDFC First Bank. RBL Bank surged over 9% after Emirates NBD announced a deal to acquire a stake in the lender.

Reliance Industries jumped more than 3.5% after reporting better-than-expected quarterly earnings, emerging as the top contributor to Nifty gains. Among other major movers, TCS, Hindalco, Titan, Apollo Hospitals, and Infosys also closed higher.

However, banking heavyweights ICICI Bank and HDFC Bank slipped after reporting their Q2 results, with ICICI Bank falling around 3%. Insurance stocks such as Niva Bupa and Star Health dropped about 2% each. Dixon Technologies declined nearly 4% after CLSA downgraded the stock and cut its FY26 revenue growth guidance to 30–35%.

Overall, buying in select energy, midcap, and PSU banking names helped offset weakness in private lenders and insurance counters, keeping benchmarks near record levels.