Indian markets closed higher for the second consecutive week, with the Nifty at 23,146.15 led by a 10% surge in IT stocks. Tech Mahindra’s strong profit growth and bonus announcement boosted sentiment, though market breadth remains mixed. Investors are now focused on upcoming quarterly banking results and the ₹30,213 crore Jio Platforms IPO scheduled for October 21.
Indian equity markets recorded a second consecutive week of gains, with the Nifty closing at 23,146.15 and the Sensex settling at 74,729.27. The positive trend was largely concentrated in the technology sector, which saw a 10% rise over the week, indicating a shift in investor preference toward large-cap software exporters.
Tech Mahindra emerged as a key performer, with its stock climbing 7% after the company reported its Q2FY27 financial results. The company’s profit rose by 32.74% year-on-year to ₹1,585.6 crore. Alongside the earnings, the company announced a 1:1 bonus issue and a dividend of ₹15 per share. Similar optimism extended to other major IT firms, including Tata Consultancy Services and Infosys, which also recorded gains.
Despite the headline indices reaching higher levels, the broader market showed signs of strain. The Bank Nifty remained largely flat, ending the session at 55,844. Furthermore, sectors such as FMCG, real estate, and pharmaceuticals experienced selling pressure, and midcap and smallcap indices saw marginal declines. This suggests that the current market rally is narrow, with capital moving toward established IT giants while domestic consumption-focused stocks lag.
The market environment is also grappling with several macro pressures. Brent crude prices are elevated near $105.70 per barrel, which continues to influence the value of the Indian rupee, currently trading around ₹94.79 against the dollar. Additionally, the US 10-year Treasury yield is hovering at 5.09%, a level that often creates liquidity challenges for emerging markets. On the trade front, gold imports declined by 81.27% in September following recent duty adjustments, though the Reserve Bank of India’s market intervention remains a significant factor in currency stability.
Looking ahead, investors are turning their attention to two major events. First, the banking sector is preparing to release quarterly results, with disclosures from HDFC Bank, ICICI Bank, and Axis Bank being vital to understanding sector valuations. Second, the market is monitoring the upcoming Jio Platforms IPO, a ₹30,213 crore offering scheduled for October 21. Investors will be watching to see if this large public issue impacts system liquidity.