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Informist, Tuesday, Oct. 6, 2026

 

By Shruti Nair

 

MUMBAI – Gains in the domestic equity market will continue to be stock-specific in nature, with small-cap players likely to outperform their large-cap peers in the near term. Amid higher crude oil prices and sustained selling by foreign institutional investors, benchmark indices are expected to be range-bound with stock-specific triggers likely to dictate traction. Investors will await commentary by the Reserve Bank of India during its policy announcement Wednesday. 

 

On Tuesday, the Nifty 50 index 1% higher at 22776.10, up 220.35 points, and the BSE Sensex closed 1% higher at 73067.81, up 685.34 points. Shares of Trent and Kotak Mahindra Bank were among the top gainers in the index, buoyed off their positive quarterly updates. A fall in crude oil prices below the $100 per barrel mark helped indices trend higher over the course of the session. Nevertheless, a sharper fall in crude oil prices would be needed to trigger decisive positive momentum in benchmark indices, according to a senior analyst at a top domestic broking firm. In the near term, support for the benchmark Nifty 50 is placed at 22500 points and resistance is seen at 22900 points.

 

Despite challenges related to crude prices stemming from the US-Iran war, the analyst is of the opinion that steps taken by the government and the Reserve Bank of India, such as the rationalisation of the goods and services tax and liquidity provided through Foreign Currency Non-Resident(Bank) deposits, over the past year and a half, have helped the economy somewhat cushion current inflationary pressures and the impact of patchy monsoon.

 

Commenting on the impact of the upcoming policy announcement by the Reserve Bank of India, the analyst said he believes markets have already priced in a 25-basis point hike in the benchmark repo rate, in line with the consensus view. However, he is of the view that the ensuing rate hike cycle would be a shallow one, opining that it is not so much the domestic fiscal factors that are the impetus behind the probable hike. Rather, it would be reflective more so of the central bank's efforts to manage a healthy interest rate differential between India and global economies. Nevertheless, foreign institutional investor selling is likely to persist in the near term amid currency pressure.

 

With IT bellwether Tata Consultancy Services poised to kick off the September quarter earnings season, analysts believe the sector will face challenges in the near term, primarily due to corporates becoming more conservative with their spending habits. Amid macroeconomic and inflationary pressures, larger corporates globally are rationalising their expenditure towards the sector as a whole. Consequently, IT majors are faced with shrinking deal sizes amid significant competition. While the tone of discussions related to artificial intelligence companies has turned more cautious, positive traction in the Indian IT sector will primarily depend on the reversal of the conservative spending trend towards the sector.

 

TCS is slated to declare its September quarter earnings Thursday. Analysts expect the Nifty 50 major to post a 2% on-quarter fall in its consolidated bottom line at nearly INR 137.6 billion, while its top line is expected to expand a mere 1% to INR 730.8 billion.  End

 

US$1 = INR 96.42

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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