Sensex rises 941 points, posts best day in three months led by ICICI Bank

Stock market news: Benchmark indices kicked off the trading week on a strong note tracking Asian peers and strong quarterly results of heavyweights ahead of Fed's rate decision.

The blue-chip S&P BSE Sensex rose 941.12 points, or 1.28 per cent to 74,671.28 and the broader NSE Nifty 50 closed 223.45 points, or 1 per cent higher at 22,643.40.

"Nifty saw heavy put writing at 22,700 and below strikes indicates the upside shall is likely to continue for tomorrow,  BankNifty days range today was almost 1,100 points and closed at day high with heavy put writing seen at the 49500 and below strikes indicates the upside potential likely upto 50,000," said Rahul Ghose Founder & CEO, Hedged.in.

ICICI Bank, along with other major lenders like State Bank of India (SBI) and Axis Bank, hit record highs and were among the top gainers on the Nifty 50 index. Financial stocks rose by 2.14 per cent, with ICICI Bank climbing by 4.72 per cent to reach a record high, its best session in over two years. The bank's strong loan growth contributed to its March-quarter profit beating analysts' estimates.

Analysts at Investec noted that ICICI Bank's results continue to positively surprise. They stated, "The lender remains on track to deliver strong growth and profitability over the medium term and hence should sustain premium valuations."

Axis Bank also hit a record high after surpassing fourth-quarter profit estimates, rising by 9 per cent over three sessions. SBI, India's largest state-owned lender, saw its shares increase by more than 3 per cent.

Neeraj Dewan, director at Quantum Securities, commented on the positive trend in financials, saying, "The earnings in financials have been better than expected so far. This has alleviated any lingering concerns over elevated valuations, aiding the rise over the last week."

However, not all stocks fared well. Software services provider HCL Tech fell by 5.9 per cent after reporting lower-than-expected fourth-quarter revenue due to weak client spending. Apollo Hospitals Enterprise also declined by 4.64 per cent after selling a stake in its digital unit, a move that some brokerages felt undervalued the subsidiary.

Meanwhile, BSE stumbled nearly 14 per cent following a directive from India's markets regulator to pay regulatory fees on annual turnover based on the notional value of options contracts.

The positive performance of ICICI Bank and other major financial stocks helped drive India's blue-chip indices to their best session since March 1.

(With Reuters inputs.)