Share Market Today: Tech Mahindra, Trent, IndusInd Bank Lead Gains as Markets Surge on Trade Deal Hopes

Stock Market Update for April 21: Tech Mahindra, Trent, IndusInd Bank Lead Gains as Markets Surge on Trade Deal Hopes

Indian stock markets continued their strong rally on Monday, April 21, with both the SENSEX and the NIFTY50 reaching significant highs.

The upward momentum was driven by hopes that ongoing discussions between India and the United States could lead to a bilateral trade agreement, unlocking new economic opportunities.

The positive sentiment was further fueled by U.S. Vice President JD Vance’s visit to India, aimed at strengthening economic ties between the two nations.

The SENSEX surged by as much as 1,081.80 points during the day, reaching an intraday high of 79,559.50. It eventually ended the day 855 points higher, or 1.09%, at 79,408.50.

Similarly, the NIFTY50 index also saw strong gains, touching an intraday high of 24,189.55 before closing up 274 points, or 1.15%, at 24,125.55.

These gains mark the fifth consecutive session of positive movement in Indian equity benchmarks, as investor sentiment remains upbeat following several favorable macroeconomic developments.

Over the past five trading sessions, the NIFTY50 has surged by 7.7%, based on data from the National Stock Exchange (NSE).

Market Boosted by Trade Talks and Optimism

The stock market rally can be attributed to the ongoing optimism around the possibility of a bilateral trade deal between India and the U.S.

Analysts believe that such an agreement could open doors for increased trade, investment, and collaboration in key sectors such as technology, manufacturing, and renewable energy.

The visit of U.S. Vice President JD Vance to India has added momentum to this positive outlook, especially as the two nations explore opportunities for economic partnership.

The markets also reacted positively to recent economic data and earnings reports, suggesting resilience in various sectors of the economy.

Another contributing factor to the market’s buoyant mood was the strong performance of the IT sector. With Infosys, India’s second-largest IT company, posting solid earnings, investors turned their attention to other IT stocks, boosting their performance across the board.

Top Gainers and Losers in NIFTY50

The NIFTY50 index saw broad-based buying across most sectors. Out of the 50 stocks in the index, 39 ended the day higher, with several companies witnessing impressive gains, particularly in the IT, banking, and retail sectors.

Top Gainers in NIFTY50

• Tech Mahindra was the top gainer, rising by 5.14% to close at ₹1,374. The stock benefited from investor optimism after Infosys reported strong earnings, sparking a rally in IT stocks. As one of the major players in the IT sector, Tech Mahindra’s robust performance mirrored the positive sentiment in the industry.
• IndusInd Bank and Trent also had notable performances, both rising by over 4%. IndusInd Bank saw a rise in stock price following the ongoing bullish sentiment in the banking sector, driven by expectations of improving credit growth and financial performance. Meanwhile, Trent, a key player in the retail sector, benefitted from an uptick in consumer spending and a positive outlook for retail businesses in India.

Top Losers in NIFTY50

• On the flip side, Adani Ports emerged as the top loser, declining 1.27% to close at ₹1,243. The stock has faced volatility in recent months due to various external and internal factors, including regulatory concerns and broader market conditions.
• Other notable laggards in the NIFTY50 included HDFC Life (-1.12%), ITC (-1.01%), Hindustan Unilever (-0.97%), and Asian Paints (-0.94%). These stocks, though part of the market’s staple, saw profit-taking after their recent rally and faced downward pressure from broader market sentiment.

NIFTY Midcap 100: Telecom and Renewable Energy Stocks Shine

The NIFTY Midcap 100 index performed exceptionally well on April 21, advancing by 2.5%, or 1,316.65 points, to close at 53,974.45. This robust performance was driven by strong gains in both the telecom and renewable energy sectors.

Key Gainers in NIFTY Midcap 100

• Vodafone Idea was the standout performer in the midcap index, surging 10.81% to close at ₹8.10. The stock saw a massive spike after the Indian government raised its stake in the telecom company to 48.99%. This move came after the government converted ₹36,950 crore of AGR dues into equity, making it the largest shareholder in Vodafone Idea, ahead of both Vodafone Group and Aditya Birla Group. This shift in ownership has generated optimism about the company’s future prospects.
• Suzlon Energy also saw a strong gain of 9.55%, closing at ₹55.07, as it received a boost from the Ministry of New and Renewable Energy’s announcement to update the list of wind turbine parts that need to be sourced locally. This move is expected to benefit companies in the renewable energy sector, such as Suzlon, which focuses on wind power.
• Tata Elxsi saw its stock rise 8.99% to ₹5,341, despite a mixed earnings report. The company’s revenue showed a slight year-over-year increase, though it faced a slight decline in sequential performance. Nonetheless, its growth prospects and strong market position helped lift investor sentiment.

Key Losers in NIFTY Midcap 100

While the overall performance of midcap stocks was positive, there were a few notable losers in this segment. Marico (-2.75%), Max Healthcare (-1.19%), and NTPC Green (-0.81%) were among the stocks that faced selling pressure.

NIFTY Smallcap 100: Strong Performances in Tech and Infrastructure

The NIFTY Smallcap 100 index also enjoyed solid gains on April 21, rising by 2.21% or 363 points to close at 16,773.35. Among the small-cap stocks, several technology and infrastructure companies stood out with strong performances.

Key Gainers in NIFTY Smallcap 100

• Kalpataru Projects International was the top performer, surging 13.46% to ₹1,060. The company’s strong showing was likely driven by investor confidence in its infrastructure projects and long-term growth potential.
• KFIN Technologies (+9.86%) and CDSL (+5.79%) were other significant gainers in the small-cap space, benefiting from robust growth in the financial services and technology sectors.

Key Losers in NIFTY Smallcap 100

Despite the overall positive movement, there were some notable decliners. RK Forgings (-2.51%), PCBL (-1.78%), and Zen Technologies (-1.72%) were among the stocks that saw profit-taking amid broader market gains.

Final Remarks: Optimism Continues to Drive Indian Markets

The Indian equity market’s strong performance on April 21 reflects a continued positive outlook, supported by favorable developments in global trade and optimism surrounding key sectors like IT, telecom, and renewable energy.

As the market rallies, investors are closely watching trade talks between India and the U.S. for further clues on economic collaboration, while sectoral performances, especially in IT and telecom, continue to be pivotal in sustaining momentum.

With the markets riding high on optimism and showing resilience, it will be interesting to see how these trends evolve in the coming weeks, particularly as corporate earnings reports and global economic conditions unfold.