Closing Bell: Sensex Gains Over 40 Points, Nifty Tops 23,100 as IT Stocks Rally

Market Update at 04:10 PM: Indian benchmark indices, the Sensex and the Nifty 50, extended their gains on Friday, October 16, 2026, as buying in information technology stocks supported market sentiment. The rally followed Thursday's sharp recovery, with technology stocks attracting investor interest after encouraging Quarterly Results from major IT companies.

The Sensex advanced 429.18 points, or 0.58 per cent, to close at 74,744.79, while the Nifty 50 gained 143.40 points, or 0.62 per cent, to settle at 23,140.75. The indices recovered from a muted start, with IT stocks providing the primary support. The Nifty 50 gained around 2.6 per cent during the week.

Information technology stocks led the market recovery, supported by quarterly results from Tech Mahindra and Wipro. The Nifty IT index recorded strong gains as investors responded to better-than-expected revenue performance and robust deal wins at major IT services companies.

Tech Mahindra shares rose approximately 7.1 per cent on Friday after the company reported stronger quarterly revenue and healthy deal wins. Wipro advanced around 5.7 per cent following better-than-expected quarterly revenue and optimism about potential large deals. TCS and Infosys also attracted buying interest.

International crude oil prices remained elevated despite easing slightly from recent levels. Brent crude traded around USD 105 per barrel, keeping energy costs in focus for India, which imports a substantial share of its crude oil requirements. Persistently high oil prices remain a potential concern for oil marketing companies, aviation firms and other businesses with fuel-linked input costs. They could also add to inflationary pressures and affect corporate margins.

The Indian rupee continued to recover against the U.S. dollar following recent measures by the Reserve Bank of India and changes in dollar demand. The currency's recent appreciation has helped ease some concerns about imported inflation and currency-related volatility. However, the rupee remains sensitive to foreign portfolio flows, crude oil prices and movements in the U.S. dollar. Its performance will continue to be relevant for importers, exporters and companies with foreign-currency exposure.

Despite gains in benchmark indices, participation across the broader market remained selective. Mid-Cap and Small-Cap stocks traded largely flat after early losses, indicating that the recovery was concentrated in select heavyweight stocks rather than being uniformly spread across the market.

Information technology stocks remained the primary drivers of the market's advance. Buying in IT stocks helped offset pressure from elevated crude oil prices and weakness in select heavyweight shares.

Tech Mahindra advanced after reporting a 32.74 per cent year-on-year increase in consolidated Q2FY27 net profit to Rs 1,585.6 crore. Revenue from operations rose 15.6 per cent to Rs 16,180.2 crore, while new deal wins reached USD 1.023 billion, up 25.4 per cent year-on-year. The company also recommended a 1:1 Bonus issue and declared an interim Dividend of Rs 15 per share.

Wipro gained following its quarterly results. The company reported consolidated Q2FY27 net profit of Rs 3,200.6 crore, while revenue increased to Rs 24,752.7 crore. Its operating margin expanded sequentially, and management's outlook on large deal opportunities supported investor sentiment.

Persistent Systems moved in the opposite direction, declining as investors assessed margin-related concerns and higher amortisation and acquisition-related costs. The stock's weakness highlighted the selective nature of buying within the IT sector, despite broader strength in technology shares.

Among the major positive contributors listed in the supplied market data were Infosys, adding 39.54 points; Bharti Airtel, contributing 34.76 points; and Tata Consultancy Services (TCS), adding 25.70 points.

On the negative side, Reliance Industries dragged the index by 5.56 points, followed by InterGlobe Aviation (IndiGo) at 4.51 points and Bharat Electronics (BEL) at 2.78 points. These stock-level contribution figures should be cross-checked against official exchange closing data before publication.

The supplied market-breadth data showed 2,131 advancing stocks, 1,422 declining stocks and 116 unchanged stocks out of 3,669 stocks traded on the NSE. A total of 61 stocks touched their 52-week highs, while 94 hit their 52-week lows. Additionally, 116 stocks reached their Upper Circuit limits and 92 stocks hit their Lower Circuit limits. These breadth figures should be confirmed against an official exchange snapshot before publication.

Market Update at 02:20 PM: The Indian equity benchmarks continued to trade higher on Friday, supported by gains in IT and metal stocks. As of 2:00 PM, the Sensex rose 363.62 points, or 0.49 per cent, to 74,679.23, while the Nifty 50 advanced 129.45 points, or 0.56 per cent, to 23,126.80.

Despite the gains in benchmark indices, HDFC Life Insurance Company, Jio Financial Services and SBI Life Insurance Company were among the Top Losers in the Nifty 50 index.

Broader markets remained under pressure, with the Nifty MidCap declining 0.35 per cent and the Nifty SmallCap falling 0.18 per cent. Among sectoral indices, the Nifty IT recorded the strongest gains, while the Nifty Oil and Gas index declined the most.

Market Update at 12:20 PM: The Indian equity benchmarks traded higher at noon on Friday, supported by gains in IT and metal stocks. As of 12:00 PM, the Sensex rose 345.67 points, or 0.47 per cent, to 74,661.28, while the Nifty 50 advanced 123.30 points, or 0.54 per cent, to 23,120.65.

Despite the gains in benchmark indices, HDFC Life Insurance Company, Jio Financial Services and SBI Life Insurance Company were among the top losers in the Nifty 50 index.

Broader markets remained under pressure, with the Nifty MidCap declining 0.35 per cent and the Nifty SmallCap falling 0.18 per cent. Among sectoral indices, the Nifty IT recorded the strongest gains, while the Nifty Oil and Gas index declined the most.

Market Update at 09:30 AM: The Nifty 50 and the Sensex declined in early trade on Friday as auto and financial services stocks weighed on market sentiment. As of 9:18 AM, the Sensex fell 189.93 points, or 0.26 per cent, to 74,125.68, while the Nifty 50 declined 34.45 points, or 0.15 per cent, to 22,962.90.

HDFC Life Insurance Company, Jio Financial Services and SBI Life Insurance Company were among the top losers in the Nifty 50. In the broader markets, the Nifty MidCap declined 0.35 per cent, while the Nifty SmallCap fell 0.18 per cent. Among sectoral indices, the Nifty IT gained the most, whereas the Nifty Oil and Gas recorded the steepest decline.

Investors will track quarterly earnings from Bajaj Housing Finance, Crompton Greaves Consumer Electricals, DLF, E2E Networks, Federal Bank, Jindal Saw, LTM, Oberoi Realty, Punjab National Bank (PNB), Tejas Networks and Ujjivan Small Finance Bank, which are scheduled to announce their second-quarter results on Friday.

In the primary market, the IPOs of Tonbo Imaging India, Zetwerk, Bonfiglioli Transmissions, Sahajanand Medical Technologies and Shellz India will enter their second day of subscription. Meanwhile, the Fusion CX and Ravita Engineering Services IPOs will enter their final day of bidding.

Pre-Market Update at 7:40 AM: GIFT Nifty at 23,073.50, up 76.15 points or 0.33 per cent over the previous Nifty 50 close, indicated a firm start for domestic equities on October 16. The indication was recorded at 7:03 AM IST, following a strong previous session for benchmark indices.

The Nifty 50 gained 374.65 points or 1.66 per cent to close at 22,997.35 on October 15, while the Sensex advanced 1,533.72 points or 2.11 per cent to 74,315.61. Overseas markets were largely positive, although mixed Asian trading and elevated crude prices remain relevant for the domestic market opening.

SEBI has revised the closing-auction session framework, market timings and settlement methodology for derivatives contracts. Under its October 15 circular, derivatives settlement will use the last 30-minute volume-weighted average price methodology. The changes to the closing-auction framework and trading hours will take effect from December 7, 2026. The development is relevant for exchanges, brokers, asset managers, Index Funds, arbitrageurs and participants in liquid derivative stocks.

The Reserve Bank of India (RBI) has clarified that banks must maintain the Foreign Exchange Risk Reserve in their cash reserve ratio (CRR) accounts over and above mandatory CRR balances. The reserve will be equivalent to 20 per cent of the rupee notional value of eligible foreign-exchange derivative contracts. The requirement applies to specified current-account hedges exceeding USD 2 million and eligible own-book hedges. The clarification is relevant for bank treasury operations, foreign-exchange hedging costs and companies with import or export exposure.

RBI data showed that India's current-account deficit narrowed to USD 5.2 billion in August from USD 6.1 billion a year earlier. Net services receipts increased to USD 16.5 billion from USD 15.6 billion, while the overall balance of payments recorded a surplus of USD 45.4 billion, compared with a deficit of USD 5.6 billion a year earlier. However, for April to August, the current-account deficit widened to USD 18.3 billion from USD 12.8 billion in the corresponding period a year earlier. The data will be watched by participants tracking the rupee, banking system liquidity and foreign portfolio flows.

DLF and Punjab National Bank are scheduled to announce their Q2FY27 results on October 16. Their financial performance and management commentary will be monitored for signals concerning the real-estate and public sector banking segments.

U.S. equities ended higher in the previous session, with the Dow Jones Industrial Average rising 1.08 per cent to 52,177.69. The S&P 500 gained 0.33 per cent to 7,744.06, while the Nasdaq edged up 0.08 per cent to 26,713.03. European equities also closed higher, with the FTSE 100 rising 1.08 per cent, the CAC 40 gaining 0.78 per cent and the DAX advancing 0.33 per cent.

Asian markets were mixed in early trade on October 16. Japan's Nikkei climbed 1.92 per cent to 65,661.11, while Hong Kong's Hang Seng declined 1.03 per cent and the Shanghai Composite fell 1.59 per cent. The divergent Asian trend may temper the otherwise positive cues from the U.S. and European sessions.

Brent crude traded at USD 105.61 per barrel as of 7:03 AM IST, down 0.07 per cent, while West Texas Intermediate (WTI) crude stood at USD 97.99 per barrel, lower by 0.17 per cent. Crude prices remain elevated, keeping energy costs in focus for India as a major oil importer. Oil marketing companies, aviation firms and businesses with fuel-linked input costs may remain sensitive to further price movements.

Gold declined 0.54 per cent to USD 4,148.10, while silver fell 0.43 per cent to USD 57.13. The Dollar Index dropped 0.48 per cent to 102.06. The rupee traded around Rs 95.05 per U.S. dollar, appreciating 0.10 per cent. A softer dollar and the RBI's latest external-sector data are among the developments relevant for currency-sensitive businesses.

The U.S. 10-year Treasury yield rose by 0.024 percentage points to 5.098 per cent. Higher U.S. yields are relevant for global risk appetite and equity valuations, particularly in emerging markets, as investors assess relative returns across asset classes.

Foreign institutional investors (FIIs) were net sellers of Rs 5,285.37 crore on October 14, while domestic institutional investors (DIIs) were net buyers of Rs 3,319.39 crore. The contrast highlights domestic institutional buying alongside foreign selling during the latest reported session. These one-day flow figures will be tracked alongside global market cues and currency movements.

The Nifty 50 closed at 22,997.35 on October 15 after moving between an Intraday low of 22,637.40 and a high of 23,056.40. The Sensex ended at 74,315.61, near its intraday high of 74,330.29. India VIX declined 4.17 per cent to 14.02, indicating easing volatility expectations. However, a fall in the volatility gauge does not independently indicate the direction of the market.

Tech Mahindra reported a 32.74 per cent year-on-year increase in consolidated Q2FY27 net profit to Rs 1,585.6 crore. Revenue from operations rose 15.6 per cent to Rs 16,180.2 crore, while the total contract value of deal wins stood at USD 1.023 billion. The board recommended a 1:1 bonus issue and declared an interim dividend of Rs 15 per share. October 23, 2026, has been fixed as the dividend record date.

Wipro's consolidated net profit declined 4.5 per cent sequentially to Rs 3,200.6 crore in Q2FY27, while revenue increased 1.1 per cent sequentially to Rs 24,752.7 crore. Operating margin expanded by 50 basis points sequentially to 16.5 per cent. For the third quarter, the company guided for IT services revenue growth ranging from a decline of 1.5 per cent to growth of 0.5 per cent sequentially in constant currency terms.

Tata Communications reported an 86 per cent year-on-year increase in consolidated Q2 net profit to Rs 341 crore. Revenue rose 9.6 per cent year-on-year in the September quarter.

IIFL Finance reported that consolidated Q2 net profit nearly doubled to Rs 805 crore from Rs 418 crore a year earlier. Revenue increased to Rs 4,246 crore from Rs 3,305 crore, while gross assets under management growth was reported at 38 per cent.

L&T Finance's consolidated net profit rose 33 per cent year-on-year to Rs 975 crore. Its consolidated loan book increased 28 per cent to Rs 1.36 lakh crore, while total income grew 26 per cent to Rs 5,484 crore. Gross non-performing assets (NPAs) improved to 2.7 per cent from 3.2 per cent a year earlier, making the lender's quarterly performance relevant for the non-banking financial company (NBFC) segment.

Jio Financial Services reported Q2 consolidated revenue of Rs 1,699 crore, compared with Rs 981 crore a year earlier. Gross profit rose to Rs 1,111 crore from Rs 681 crore, while net profit declined to Rs 384 crore from Rs 478 crore.

ICICI Prudential Asset Management Company reported 18 per cent revenue growth and 6 per cent net profit growth for Q2FY27. The company also reported a decline in equity market share amid competition, which may remain a monitorable factor.

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

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