Midcap Market Surges Above Record High as Indian Bank and Kalyan Jewellers Drive Rally

Midcap Market Surges Above Record High as Indian Bank and Kalyan Jewellers Drive Rally​

Nifty Midcap 100 Climbs to New Peak Amid Sectoral Strength​

The Nifty Midcap 100 index witnessed a significant rally, breaching fresh record highs on July 10. The index closed trading over 1% higher in the afternoon session, reaching 62,890.85 at 2:10 pm, after peaking intraday at 62,950.05.

This robust performance was significantly propelled by gains seen in key stocks, including Indian Bank and Kalyan Jewellers, which featured prominently among the top performers on the Midcap index. The overall upward momentum suggests strong investor confidence across various sectors represented within the index.

Indian Bank Posts Stellar Results Boosting Market Momentum​

Indian Bank emerged as a significant driver of the index's gains, surging 9.5% following the release of its June quarterly results. The bank reported impressive profitability metrics, reinforcing its fundamental strength.

For the quarter, Indian Bank’s net profit increased by over 10% year-on-year to ₹3,273 crore. Furthermore, total income saw a notable rise of around 11% on year to reach ₹20,724 crore.

The bank's domestic net interest margin improved to 3.41% in the June quarter, up from 3.35% a quarter prior. This metric remains comfortably above its full-year guidance range of 3.10%–3.25%.

Net Interest Income and Asset Quality Improve at Indian Bank​

Net interest income, calculated as the difference between interest earned and interest expended, rose nearly 17% on year to ₹7,435 crore in the June quarter. This is a substantial increase from the ₹6,359 crore recorded a year ago.

The bank also demonstrated improved asset quality. The provision coverage ratio increased by two basis points (2 bps) to 98.22% for the June quarter. Provisions and contingencies for the quarter rose 73% on year to ₹1,196 crore from ₹691 crore in the previous year.

Provisions specifically allocated for non-performing assets stood at ₹376 crore. These financial metrics reflect a period of strengthening performance for the lender.

Kalyan Jewellers Extends Rally Bolstered by Brokerage Confidence​

Shares of Kalyan Jewellers India continued their upward trend, marking a third consecutive session of gains on Friday. The stock surged more than 7% and was listed among the top performers within the Midcap index.

Investors continued to accumulate the shares following positive advice from brokerage firms and growing belief in the company's long-term growth trajectory. Citigroup reiterated its 'Buy' rating on the jewellery retailer, maintaining a target price of ₹750 per share.

Citi acknowledged that Kalyan Jewellers’ consolidated revenue growth for the June quarter reached 38% year-on-year, which was below their internal estimates. However, the brokerage house maintained its constructive long-term view despite this miss. The current target price still implies meaningful upside potential from existing trading levels.