July 21 Market Watch: Key Stocks in Focus Including Reliance and Major Banks
Market highlights for July 21: Reliance Industries, HDFC Bank, and ICICI Bank lead stock movements as Q1 earnings drive investor sentiment and market trends.

July 21 Market Watch: Key Stocks in Focus Including Reliance and Major Banks
India’s equity markets opened the week on a mixed note, with strong performances from major private banks offsetting losses in heavyweight Reliance Industries. Positive earnings from HDFC Bank and ICICI Bank lifted investor sentiment, while concerns around Reliance's core business weighed on overall momentum.
Banking Sector Leads the Rally
HDFC Bank and ICICI Bank were among the top gainers of the day, rising around 2% to 2.5% after reporting better-than-expected Q1 results. Both banks showed robust loan growth, improved asset quality, and healthy net interest margins, which reassured investors about the strength of the banking sector.
The overall financials sector gained over 1%, supporting broader market indices like the Nifty 50 and the Sensex, which closed higher by 0.37% and 0.45% respectively.
Reliance Industries Faces Pressure
In contrast, Reliance Industries shares slipped around 2% following a lukewarm response to its Q1 earnings report. Although the company posted a significant rise in consolidated profit—mainly due to a one-time gain from its stake sale in Asian Paints—investors appeared concerned about slower growth in its oil-to-chemicals (O2C) and retail segments.
The company’s telecom arm, Jio Platforms, performed well, but this was not enough to offset broader market skepticism over the company’s core business units. Analysts continue to maintain long-term optimism for Reliance, but near-term price action suggests caution.
Broader Market Trends
While the blue-chip indices showed resilience, mid-cap and small-cap stocks remained largely flat. Sectorally, banking and financial services were the top performers, while FMCG and pharma stocks saw mild profit booking. Market breadth was neutral, with advances and declines nearly balanced.
Investor Sentiment and Outlook
Analysts believe that the positive momentum in the banking sector could continue in the near term, especially with more earnings reports expected this week. However, caution is advised due to global uncertainties, including upcoming U.S. Federal Reserve comments and trade-related developments.
Technical analysts noted that the Nifty 50 reclaimed its 50-day moving average around 25,000, suggesting short-term support. Resistance levels are now expected around 25,200–25,300.
Conclusion
July 21’s market activity highlights a clear divide between sectoral strengths. While financial stocks drove gains on strong earnings, underperformance in Reliance Industries capped broader upside. With key macroeconomic events and earnings still ahead, investors are likely to stay selective, focusing on quality names in banking, telecom, and consumer sectors.