Nifty, Sensex Likely to See a Subdued Start; TCS in Focus After Q2 Results

Pre-Market Update at 7:35 AM: On Friday, October 10, equity benchmark indices Sensex and Nifty 50 are expected to open lower, following weakness in global markets. At 7:10 AM, the GIFT Nifty was trading at 25,241, down 19 points. 

With the Q2 earnings season underway, the market is likely to trade within a wide range, supported by strong domestic liquidity and improving global sentiment. Stock and sector-specific movements may continue, driven by festive demand and expectations of healthy Q2FY26 earnings.

In early trade, Asian markets were mostly lower, tracking overnight losses on Wall Street, where all three major indices ended in the red.

On Thursday, October 9, Foreign Institutional Investors (FIIs) were net buyers for the third consecutive day, purchasing equities worth Rs 864.36 crore. Domestic Institutional Investors (DIIs) also remained net buyers for the 32nd straight session, investing Rs 1,308.16 crore.

On Thursday, Indian benchmark indices ended higher, supported by gains in metal and IT stocks. The Nifty 50 rose 135.65 points, or 0.54 per cent, to 25,181.80, while the Sensex gained 398.45 points, or 0.49 per cent, to close at 82,172.10. The Nifty Metal index led the rally amid rising global base metal prices. The Nifty IT index advanced 1.12 per cent, led by TCS, which gained 1.14 per cent ahead of its Q2FY26 results. Over the past five sessions, the IT index has gained 5.08 per cent. All sectoral indices closed in the green, while midcap and smallcap indices outperformed.

Tata Consultancy Services (TCS) reported consolidated revenue of Rs 65,799 crore for Q2FY26, up 3.7 per cent quarter-on-quarter and 0.8 per cent in constant currency. International revenue rose 0.6 per cent QoQ in constant currency, led by growth in the BFSI vertical. 

The operating margin expanded 70 basis points to 25.2 per cent, while net income rose 8.4 per cent year-on-year to Rs 12,904 crore, with a net margin of 19.6 per cent. Cash flow from operations stood at 110.1 per cent of net income, and total contract value (TCV) for the quarter reached USD 10 billion. 

The board declared a dividend of Rs 11 per share, with a record date of October 15, 2025, and payment on November 4, 2025. TCS also announced a new business entity to build AI infrastructure in India with a 1 GW capacity data centre and completed the acquisition of 100 per cent stake in ListEngage.

US markets ended lower on Thursday amid consolidation ahead of the Q3 earnings season. The Dow Jones Industrial Average declined 243.36 points, or 0.52 per cent, to 46,358.42. The S&P 500 fell 18.61 points, or 0.28 per cent, to 6,735.11, while the Nasdaq Composite slipped 18.75 points, or 0.08 per cent, to 23,024.63.

Japan’s wholesale inflation in September stood at 2.7 per cent year-on-year, unchanged from the previous month. The Corporate Goods Price Index (CGPI), which tracks prices between companies, was slightly above market expectations of a 2.5 per cent rise.

Gold prices recovered slightly in early Asian trade after a sharp overnight fall. Spot gold rose 0.3 per cent to USD 3,986.90 per ounce. On October 9, gold futures on MCX closed at Rs 1,20,493 per 10 grams, down Rs 2,716 or 2.2 per cent.

Crude oil prices were little changed in early Asian trade after falling over 1 per cent in the previous session. The decline came as geopolitical risk premiums eased following reports that Israel and Hamas agreed to the first phase of a plan to end the Gaza conflict. Brent crude futures rose 9 cents, or 0.1 per cent, to USD 65.31 a barrel, while US West Texas Intermediate (WTI) crude gained 12 cents, or 0.2 per cent, to USD 61.63.

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Disclaimer: The article is for informational purposes only and not investment advice.