Mumbai: The Indian stock market is expected to remain highly sensitive this week to key macroeconomic data, corporate earnings—especially from IT giant Tata Consultancy Services (TCS)—and global financial cues.
TCS Q2 Results to Set the Tone
The biggest focus is on TCS’s quarterly results, due on October 9, which will kick off the Q2 FY26 earnings season. Given recent challenges in the IT sector—such as US visa fee hikes, a proposed 25% outsourcing tax, and job cuts—analysts believe that TCS’s management commentary will strongly influence investor sentiment.
Traders will pay close attention to updates on deal wins, tech spending, AI plans, and future hiring trends. This is especially important as the IT sector has been under pressure recently.
Key Economic Data Points to Watch
On the macroeconomic side, investors will be looking out for the HSBC Services and Composite PMI and the banking sector's loan and deposit growth data. These numbers will give a sense of the economy’s health.
The rupee’s movement against the US dollar is also in focus, especially after the currency hit record lows recently, adding pressure on foreign investments.
Global Trends and FPI Selling Still a Concern
Global markets will be shaped by important US data releases like jobless claims, consumer sentiment, and the FOMC meeting minutes. Ongoing uncertainty around the US government shutdown could also affect investor mood.
Back home, foreign portfolio investors (FPIs) continued to pull out money in September, selling stocks worth Rs 23,885 crore. So far in 2025, FPIs have sold a total of Rs 1.58 lakh crore, creating some worry for domestic markets.
IPO Activity to Remain Strong
The primary market remains active with major IPOs like Tata Capital and LG Electronics set to launch. Analysts believe this could keep retail investor interest high despite global uncertainties.
Markets Closed Last Week Higher
Last week, the BSE Sensex rose by 780.71 points and the Nifty gained 239.55 points, helped by positive domestic cues and RBI’s strong growth outlook.
