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Sensex, Nifty trade firm in early deals; IT stocks led gainers
Oct-09-2026

Indian markets started the session in green on Friday staging a technical rebound after a sharp selloff in the previous two sessions. Some support also came with fall in crude oil prices as West Asia supply concerns eased somewhat after US President Donald Trump said the country will not attack Iran before US elections next month amid productive talks to end their war that has disrupted the market.

Sensex and Nifty were trading firm in early deals with gains over 0.85% each supported by buying intrest in in IT, TECK stocks. In stock specific movement, TCS leading the gainers after the Q2 results. Investors shrugged off the US government’s decision to temporarily suspend several major technology companies, including Indian IT services firms, from filing new applications under the Permanent Labour Certification programme.

On the global front, Asian markets were trading mixed with tech weighed by renewed concerns about the AI investment boom, while support came from a drop in oil prices after Donald Trump ruled out a pre-election strike on Iran. Meanwhile, South Korea market is closed for Hangul Day, while Taiwan market is shut for Double Tenth Day.

The BSE Sensex is currently trading at 72206.78, up by 613.54 points or 0.86% after trading in a range of 71739.49 and 72216.98. There were 24 stocks advancing against 6 stocks declining on the index.

The top gaining sectoral indices on the BSE were IT up by 2.95%, TECK up by 2.23%, FMCG up by 1.17%, Realty up by 0.94% and Bankex up by 0.88%, while Capital Goods down by 0.90%, Industrials down by 0.30%, Power down by 0.15% and Energy down by 0.01% were the few losing indices on BSE.

The top gainers on the Sensex were TCS up by 3.79%, Infosys up by 2.48%, ITC up by 1.95%, Tech Mahindra up by 1.64% and Adani Ports & SEZ up by 1.59%. On the flip side, Bharat Electronics down by 1.51%, Eternal down by 1.13%, Reliance Industries down by 1.12%, ICICI Bank down by 0.37% and Mahindra & Mahindra down by 0.11% were the top losers.

Meanwhile, Crisil Intelligence, the research arm of rating agency Crisil, has estimated that India Inc’s revenue will grow 16-16.5% year-on-year (Y-o-Y) in the second quarter of the current fiscal (Q2FY27), moderating from 17.4% in Q2FY26. In its latest quarterly analysis of corporate performance, the agency said profitability is expected to remain broadly stable at June-quarter levels. Domestic demand continued to support growth, with automobiles, power, metals and consumer staples emerging as the largest contributors. Firmer commodity realisations and favourable currency translation effects also supported revenue growth in select export-oriented sectors. 

Aggregate earnings before interest, taxes, depreciation and amortisation (Ebitda) margin is expected to remain broadly stable sequentially at 18.2-18.6%, although this masks divergent trends across sectors. Commodity producers benefited from stronger realisations, while several downstream and consumer-facing sectors likely absorbed part of the increase in input costs to protect demand and sustain volume growth. Rural-linked segments of the automobile industry showed signs of losing momentum in Q2FY27. Revenue growth in the two-wheeler segment is estimated to have slowed sharply to around 12% from more than 36% in the previous quarter. Tractor revenue growth is also likely to have moderated by around 2%, indicating uneven demand across the broader automobile sector. 

In contrast, passenger vehicle revenue is estimated to have risen around 24% in Q2, supported by an expected 20% increase in volumes, premiumisation and a favourable product mix. The segment also benefited from demand momentum following the rationalisation of goods and services tax (GST) rates, although this tailwind appears to have largely played out by the end of the quarter. Commercial vehicle revenue is estimated to have grown around 21%, aided by freight activity, replacement demand and an estimated 18% increase in volumes. However, manufacturers appear to have restrained price increases despite higher costs, prioritising volume growth amid the ongoing upcycle. Within the automobile sector, Ebitda margins are estimated to have contracted by around 290 basis points (bps) in the passenger vehicle segment, despite strong revenue growth. Margins in the automotive components and two-wheeler segments are estimated to have declined by around 100 bps and 150 bps, respectively. The pressure reflects manufacturers absorbing a larger share of input-cost inflation to sustain volume momentum.

Conversely, commodity producers recorded some of the strongest margin gains. Aluminium producers’ margins are estimated to have expanded by around 1,540 bps, while those of blast-furnace steel producers widened by around 260 bps. Domestic flat-steel prices were around 17% higher Y-o-Y. However, steel revenue growth remained largely price-driven, with realisations estimated to have increased by 10%, compared with volume growth of just around 2%. Power generation revenue is estimated to have advanced around 23%, while cement revenue growth was more moderate at around 9%. Average cement prices are estimated to have declined by 6%, despite volume growth of around 6%.

Among consumer-facing sectors, fast-moving consumer goods (FMCG) revenue is estimated to have grown 10.5%. Companies responded to higher edible oil and other input costs by raising prices and reducing pack sizes. Sector margins are estimated to have declined by around 100 bps. IT services revenue grew around 12% in rupee terms. However, currency depreciation likely provided significant support, potentially masking underlying demand weakness, as discretionary enterprise spending remained cautious. Airlines faced the sharpest profitability pressures. Passenger volumes are estimated to have declined by 4%, even as fare realisations rose 18%. Higher aviation turbine fuel costs and capacity constraints are estimated to have contributed to an Ebitda margin contraction of more than 1,200 bps.

The CNX Nifty is currently trading at 22428.75, up by 196.95 points or 0.89% after trading in a range of 22294.75 and 22433.35. There were 44 stocks advancing against 6 stocks declining on the index.

The top gainers on Nifty were TCS up by 4.51%, Infosys up by 3.01%, HDFC Life Insurance up by 2.28%, Max Healthcare up by 2.16% and Tech Mahindra up by 2.15%. On the flip side, Bharat Electronics down by 1.39%, Reliance Industries down by 0.91%, BSE down by 0.64%, Cipla down by 0.52% and Sun Pharma down by 0.27% were the top losers.

Asian markets were trading mixed; Hang Seng jumped 240.21 points or 1% to 24,026.00, Straits Times rose 24.39 points or 0.45% to 5,402.57 and Jakarta Composite was up by 8.44 points or 0.14% to 6,049.69. On the other hand, Nikkei 225 slipped 247.11 points or 0.36% to 68,795.00 and Shanghai Composite was down by 46.19 points or 1.21% to 3,765.71.
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