The Indian equity market is poised for a pivotal week, with trading sentiment expected to be guided by macroeconomic data announcements, global trends, and quarterly earnings from IT major TCS. The Q2 FY26 earnings season is set to begin, with TCS scheduled to announce its results on October 9. The release of HSBC services and composite PMI, along with banking sector data on loan and deposit growth, will be closely monitored. Additionally, primary market activity is expected to remain strong, with large IPOs from Tata Capital and LG Electronics lined up.
Foreign portfolio investors (FPIs) remained net sellers of Indian equities in September, withdrawing Rs 23,885 crore and taking the year-to-date outflow to Rs 1.58 lakh crore. The movement of the rupee against the US dollar will also be tracked by investors, following the local currency’s fall to a record low level.
The IT sector will be in focus as TCS kicks off the earnings calendar for the quarter ended September 2025. The company’s management commentary on the impact of tariffs and visa costs, hiring outlook, deal wins, discretionary tech spending, and progress on AI initiatives will be closely watched. The tone of these updates could set the course for sector sentiment in the weeks ahead.
Globally, key US macroeconomic updates, including the FOMC minutes, jobless claims, and consumer sentiment data, will be in focus, especially against the backdrop of the ongoing government shutdown. The BSE benchmark climbed 780.71 points or 0.97 percent, and the Nifty went up by 239.55 points or 0.97 percent last week, as investors’ confidence was reinforced with the recent RBI’s growth stance.
Analysts believe that the market will be keenly watching the earnings season, particularly from the IT sector, as it will provide cues about the sector’s performance and the overall economy. The primary market activity is also expected to remain strong, with several large IPOs lined up. Overall, the Indian equity market is expected to be driven by a combination of macroeconomic data, global trends, and quarterly earnings, making it a crucial week for investors.