What to Expect in the Indian Equity Market This Week: Key Insights

Market Sentiment and Key Indicators

New Delhi: Analysts predict that trading sentiment in the equity market will be influenced by macroeconomic data releases, global market trends, and quarterly earnings from IT giant TCS this week.

The stock market will also keep an eye on the trading patterns of foreign investors, who were net sellers of Indian equities in September.

In September, foreign portfolio investors (FPIs) withdrew Rs 23,885 crore (approximately USD 2.7 billion), bringing the total outflow for the year to Rs 1.58 lakh crore (USD 17.6 billion).

This week is crucial as the Q2 FY26 earnings season kicks off, with TCS set to announce its results on October 9. Additionally, the release of HSBC's services and composite PMI, along with banking sector data on loan and deposit growth, will be closely observed.

Ajit Mishra, SVP of Research at Religare Broking Ltd, noted that primary market activity is expected to remain robust, with significant IPOs from Tata Capital and LG Electronics on the horizon.

On the global front, key US macroeconomic updates, including the FOMC minutes, jobless claims, and consumer sentiment data, will be under scrutiny, particularly in light of the ongoing government shutdown that has delayed some economic reports.

Investors will also monitor the movement of the rupee against the US dollar, especially as the local currency has recently fallen to a record low.

As macroeconomic indicators stabilize, market focus will shift to Q2 earnings and management insights that could influence sector sentiment. The IT sector will be particularly in the spotlight as TCS begins the earnings calendar for the quarter ending September 2025, a period marked by layoffs, a significant increase in the H-1B visa fee to USD 100,000, and a proposed 25% outsourcing tax by the Trump administration.

Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, stated that the market will be keenly observing management commentary regarding the effects of tariffs and visa costs, hiring outlook, deal acquisitions, discretionary tech spending, and advancements in AI initiatives. The tone of these updates could significantly influence sector sentiment in the coming weeks.

Last week, the BSE benchmark rose by 780.71 points or 0.97%, while the Nifty increased by 239.55 points or 0.97%.

Vinod Nair, Head of Research at Geojit Investments Limited, mentioned that Indian equities ended the holiday-shortened week on a positive note after recent corrections, as investor confidence was bolstered by the RBI's growth stance.