Markets end higher driven by stronger-than-expected bank earnings; Nifty Bank surges 1.7%

Indian markets closed near their session highs on Monday, buoyed by strong gains in the financial sector, with both Kotak Mahindra Bank and HDFC Bank playing pivotal roles in lifting the broader indices. The Nifty 50 ended the day up 142 points, or 0.61%, at 23,345, while the BSE Sensex rose by 454 points, or 0.59%, to close at 77,073.

The broader market outperformed, with the Nifty Midcap index advancing by 499 points, or 0.91%, to settle at 55,106. The Nifty Bank index, a key gauge of the financial sector, surged 810 points, or 1.67%, to close at 49,351. Kotak Mahindra Bank was the standout performer, climbing 9% after a solid quarterly earnings report, while Wipro also impressed with a 7% rise after exceeding revenue and profit expectations for Q3.

Bajaj Finserv was another notable gainer, rising 4% after announcing a partnership with Bharti Airtel to launch a new digital financial platform, signaling expansion in the fintech space. United Breweries saw its shares soar nearly 6% after the company resumed beer supply to Telangana, signaling a recovery in its operations.

Energy giant NTPC gained 3% after commissioning 25 MW of solar power capacity in Gujarat, part of its expansion into renewable energy. On the downside, SBI Life was the top loser on the Nifty, falling nearly 3% amid investor concerns about growth prospects in the life insurance sector.

Vodafone Idea's stock surged more than 9% on reports that the government would grant a partial waiver on its adjusted gross revenue (AGR) dues, alleviating some of the financial strain on the telecom company. Kalyan Jewellers broke a three-day losing streak, with its stock rising 6%, reflecting a recovery in investor sentiment.

Shares of Paytm bounced back 3% after a narrower-than-expected net loss in Q3, suggesting potential improvement in the company's financial health. However, Zomato was under pressure, slipping 7% amid concerns that its subsidiary Blinkit may continue to report losses due to heightened competition in the quick commerce space.

Indian Hotels, despite posting strong Q3 results, saw a profit-booking sell-off, with its stock falling 2%. Other companies reporting quarterly earnings, such as Can Fin Homes and DCM Shriram, saw their stocks rise, while Rallis India, Netweb Technologies, and Jio Financial Services ended the session lower.

RBL Bank staged a recovery, gaining 7% from its lows despite reporting a profit before tax (PBT) loss for the first time in 14 quarters, a sign of investor optimism in the broader financial sector. Indian Overseas Bank (IOB), Central Bank of India, Karur Vysya Bank, and MRPL also posted gains after reporting positive quarterly earnings.

Market breadth was positive, with advances outpacing declines. The advance-decline ratio stood at 2:1, indicating that broader market sentiment favored bullish stocks.