Mumbai | 09-Oct-2025, 15:45 IST — Filed on 09-Oct-2025, 15:30 IST via BSE/NSE closing data
India’s benchmarks finished higher, powered by a broad-based advance in large-cap technology names as investors positioned into the results season. Banking shares lagged on profit-booking after a resilient run, keeping headline gains measured but steady into the close.
Why IT led
- Results positioning: Street build-up ahead of Tier-1 IT earnings (management commentary on FY26 deal pipeline, mega deals, and pricing discipline) kept the group bid through the session.
- FX & margins lens: A stable INR against major currencies and ongoing cost optimization are expected to cushion near-term margins, even as discretionary spending remains selective in BFSI and retail verticals.
- Order book tone: Analysts flagged resilient traction in cloud modernization, ER&D and AI-adjacent workloads; any upgrades to large-deal TCV could be the near-term swing factor.
Why banks cooled
- Rotation after a run: Private and select PSU lenders witnessed rotational profit-taking following recent outperformance. Traders pointed to stretched short-term readings and a lack of fresh catalysts ahead of Q2 prints.
- Watchlist into Q2: Street focus stays on net interest margin glide path, deposit mobilization vs. credit growth, and opex normalization. Commentary on unsecured retail and SME stress buckets remains a key monitor.
By the Numbers (Close)
| Index | Close | Abs Chg |
% Chg |
|---|---|---|---|
| Sensex | 82,172.10 | +398.45 | +0.49% |
| Nifty 50 | 25,181.80 | +135.65 | +0.54% |
Market internals & technical view
- Breadth: Advance/decline improved through the afternoon as mid-caps recovered from early dips; defensives (FMCG, healthcare) added a cushion.
- Levels to watch: Nifty holding 25,150 on closing basis keeps near-term momentum intact; on the upside, traders eye staggered supply toward 25,350–25,400. Bank Nifty faces resistance near recent swing highs; supports seen around prior gap zones.
Note: Levels are indicative, for context only.
Sector movers
- Gainers: IT led; select autos and capital goods outperformed on order/launch expectations.
- Laggards: Banks and financials were mixed; profit-taking also visible in metals after a sharp recent up-move, though dips were bought into close.
- Thematic flows: Ongoing interest in AI/automation beneficiaries within IT services and ER&D; in banks, rotation favored names with stronger CASA traction and granular retail deposit profiles.
What the Street is listening for
- IT earnings: Guidance around FY26 revenue growth bands, large-deal closures, and any color on AI/GenAI monetization timelines.
- Banks: NIM commentary vs. funding costs, unsecured retail behavior, and credit costs; color on corporate capex pipelines into H2.
- Macro: RBI liquidity stance and bond-yield moves; global risk tone around US data and crude.
Risks
- Soft global tech spends dragging conversion of qualified pipelines to executable deals.
- Funding-cost stickiness pressuring bank margins if deposit repricing extends longer than expected.
- External shocks (oil, geopolitics) that could hit risk appetite and currency stability.
Outlook
With earnings set to begin, stock-specific dispersion is likely to rise. Consensus expects IT to anchor the near-term narrative via deal-win visibility and guarded margin resilience, while banks may consolidate as investors parse NIM trajectories and credit-cost maps. Broader trend remains constructive as long as headline indices defend key supports and global cues stay benign.
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