Banks lead as markets edge higher; IT stocks weigh on mid-morning trade

Sentiment was supported by better-than-expected corporate earnings and firm domestic cues, while global markets remained mixed.
Indian stock markets edge up, IT and PSU banks lead.
Indian stock markets edge up, IT and PSU banks lead.File image
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Indian equities were trading with a positive bias in mid-morning trade on Monday, with benchmark indices edging higher on steady buying in financials and cyclical stocks. The Nifty hovered around 25,950, up modestly, while the Sensex also held in the green. Mid-cap and small-cap indices outperformed, with the mid-cap index hitting a fresh record high as investors rotated into broader-market shares.

The BSE Sensex was trading around 84,797 points, up roughly 0.28 percent during early trade. The Nifty 50 was near 25,966 points, up about 0.22 percent at the same time.

Sentiment was supported by better-than-expected corporate earnings and firm domestic cues, while global markets remained mixed. Banking, consumer and infrastructure stocks led the gains, though IT and metal shares showed mild weakness due to selective profit-booking. Analysts noted that the Nifty will need a sustained move above the 26,000–26,100 zone to signal stronger upward momentum.

Overall, the market tone was constructive but cautious, with traders watching global data releases and foreign fund flows for further direction through the rest of the session.

Indian equities showed a mixed but generally constructive tone in mid-morning trade on Monday, with sectoral trends offering a clearer picture of where money is flowing. Financials, infrastructure and healthcare stocks supported the market, while IT, metals and autos dragged on sentiment.

Banking and financial services were among the best performing sectors, backed by steady domestic inflows and improving credit growth indicators. Both private and public sector lenders attracted buying interest, reflecting confidence in the earnings outlook and the broader economic recovery. Infrastructure stocks also held firm, helped by expectations of continued government spending and favourable demand trends across construction, logistics and related industries.

Pharma and healthcare shares were another bright spot, drawing investors looking for stable earnings and defensive exposure. Select mid-cap names across financials, consumer, and capital goods segments also saw renewed interest, contributing to broader market strength.

On the other hand, the IT sector remained the biggest drag of the session. The Nifty IT index slipped over 1 percent, weighed down by concerns over global demand and cautious commentary from overseas clients. Realty stocks were slightly weaker, reflecting some profit-taking after recent gains. Metals and auto stocks also traded soft, pressured by global commodity cues and uneven demand expectations ahead of year-end.

Overall, the sectoral trend indicates a clear tilt toward domestic growth-focused and defensive pockets, while globally sensitive sectors such as IT and metals continued to see pressure. The broader setup suggests that while benchmark indices may face resistance at higher levels, the market remains supported by strong participation in banks, infrastructure and selected mid-cap names.

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