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Informist, Monday, Jul. 20, 2026

MUMBAI – Indian stocks are expected to open lower and stay mixed after the quarterly earnings of index heavy weights Saturday failed to cheer sentiment, dealers said. Over the weekend, four banks and Reliance Industries, which together account for over 34% of the Nifty 50, put out their results. HDFC Bank reported lower than expected earnings and a contraction in its net interest margin whereas Reliance Industries earnings beat Street estimates. ICICI Bank's earnings were also better than expected, as were those from Kotak Mahindra Bank and Axis Bank but the latter two reported a drop in net interest margins. These mixed earnings along with the rise in crude oil prices are likely to keep the market range-bound, dealers said.

Brent crude oil for September delivery rose above $90 a barrel, after US attacks on Iran continued into the second week after the truce ended. The July contract of GIFT NIFTY opened sharply lower, indicating a negative open for the market. At 0724 IST, the July contract of GIFT NIFTY was at 24289.50, down 115 points or 0.5%. The 50-stock index had Friday settled 1% higher at 24334.30 points. The BSE Sensex closed at 78151.45 points, up 964.58 points or 1.3%.

Monday, sustenance above 24330 points is crucial and it is expected to be a muted open for Indian equities, Vipin Kumaar, assistant vice president, Globe Capital Market, said. This level is expected to be breached in the near term, and the index is seen inching towards 24500-24550 points. If the 50-stock index falls below 24200 points, the index may be pushed back to move in a range, he added.

Meanwhile, foreign investors have started to sell Indian stocks after briefly buying stocks in early July. These have been net sellers since the US ended the interim peace deal with Iran, and Friday they sold domestic stocks worth INR 3.76 billion. Meanwhile, domestic investors were net buyers for the ninth session and this helped the Indian market stabilise.  

Saturday, major private banks such as HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and Axis Bank declared their results. HDFC Bank's net profit for the quarter came in slightly below estimates, and its net interest margin contracted 13 basis points on quarter to 3.4%. "We expect the margins to remain subdued in the near term and improve slightly going forward, while the advances momentum is expected to sustain," SMIFS Research said. The stock had ended Friday at INR 819.60 on the National Stock Exchange. 

On the other hand, ICICI Bank's net profit, which rose 16% on year, was better than expected. The private lender's net interest margin also improved on a sequential basis and was 4.36%. The expansion in the margin was a positive surprise as the margin of its peers contracted. The stock had closed Friday at INR 1,444.30, up around 2%. 

Other private banks such as Kotak Mahindra Bank and Axis also reported higher-than-expected profits for the quarter under review. However, overall margins contracted for both players. Kotak's management indicated that the acquisition of Deutsche Bank's retail portfolio should be return-on-equity accretive over time. Nuvama upgraded Kotak Mahindra Bank to 'buy' and raised the target price to INR 460 as against INR 389.95 at close Friday. 

Meanwhile, Reliance Industries' bottom line for the June quarter fell year-on-year but the company was still able to beat consensus estimates, while the conglomerate's sales increased on year, they fell short of Street expectations. The stock ended over 2% higher at INR 1,327.20. The company's Kutch energy project is progressing as planned, with installation expected to begin after the monsoon, Nuvama said. The first phase of the 40 gigawatt hour battery manufacturing facility is scheduled to be commissioned this year, with long-term plans to scale capacity to 120 gigawatt hour.

In the US, all three indices closed lower as the risk-off sentiment increased and dragged shares of chip makers lower despite good corporate earnings for the second quarter so far. In Asia, South Korea's Kospi and Australia's S&P ASX 200 were lower in early trade, while Hong Kong's Hang Seng was up around 2%. Japanese markets were shut Monday.  End 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Gopika Balasubramanium

Edited by Pankaj Aher

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