Indian equity benchmark indices extended their rally for the second consecutive session on October 16, supported by buying in IT, media and metal stocks. The BSE Sensex closed 413.66 points higher at 74,729.27, gaining 0.56%, while the NSE Nifty50 ended up 148.80 points at 23,146.15, rising 0.65%. The Nifty climbed to an intraday high of 23,149.85 and ended near the day's high, reflecting sustained buying interest. During the session, the Sensex surged 463.17 points, or 0.62%, to 74,778.78, demonstrating strong intraday momentum. Despite weak global cues, the benchmark indices came under selling pressure in the initial hour of trade but gradually recovered as the session progressed. Both the benchmark indices extended gains for the second consecutive week, with BSE Sensex adding 3.1% and Nifty50 rising 2.7%. As per The Hindu, the rally was driven by strong buying in IT stocks amid firm global trends and positive earnings results.
The IT sector emerged as the primary driver of Friday's rally, with Tech Mahindra surging 8.45% after reporting exceptional quarterly results. The IT services firm reported a 32.74% jump in consolidated net profit to ₹1,585.6 crore for the July-September quarter of FY27, driven by strong volume growth, cost savings and rupee depreciation that lifted operating profit. Tata Consultancy Services, Infosys, Bharti Airtel, Mahindra & Mahindra, Bajaj Finance and HCLTech were also among the major winners. However, InterGlobe Aviation, Reliance Industries, Asian Paints and Bharat Electronics were among the biggest laggards. On Thursday, the sector had already shown strong performance with Tech Mahindra surging 4.75% to ₹1,650, ICICI Bank gaining 3.80% to ₹1,389.40, and Reliance Industries rising 3.44% to ₹1,215. As per The Hindu, the recent buoyancy in IT stocks, following quarterly results, has been the primary driver of the market rebound.
The Securities and Exchange Board of India announced on Thursday that it would use volume-weighted average prices from the final 30 minutes of regular trading to settle expiring stock and index derivatives contracts, reversing its decision to use the closing auction session (CAS) following pushback from traders. According to Jefferies, this change should reduce expiry-day volatility under CAS, benefiting brokers whose orders remain below pre-CAS levels. Under the revised framework, the 10-minute closing auction session will operate from 3:30 p.m. to 3:40 p.m. on all trading days, while trading in index and stock derivatives will continue until 3:45 p.m., with certain exceptions for expiring index derivatives contracts. The revisions follow a review of the existing framework, consideration of public comments, recommendations of Sebi's Secondary Market Advisory Committee and discussions with stock exchanges. SEBI's recent revision of the Closing Auction Session framework, which takes effect from December 7, reverts expiry-day derivatives settlement to the familiar last-30-minute VWAP of continuous trading while shifting the cash-market auction itself to a 10-minute window from 3:30 pm to 3:40 pm. Whole-time member KVR Murty has indicated the regulator received 'a lot of positive responses' and will give the revised rules at least a year to operate before considering further changes.
Longer-dated US Treasury yields fell to their lowest levels since September on concerns about slowing AI growth and bets that the Federal Reserve will hold rates steady at its next meeting. Wall Street ended higher, with the Dow up 1.08%, while US 10-year yields slipped 10 bps to 5.08%. Asian equities were mixed during early trade on Friday, with South Korea's Kospi, Japan's 225 index, Shanghai's SSE Composite index and Hang Seng index rebounding and ending in positive territory. However, the recovery may remain fragile as Brent crude, the global oil benchmark, declined 0.30% to $105.6 per barrel. Although prices edged lower, crude remained elevated, keeping the import bill, inflation outlook and operating costs of fuel-sensitive businesses in focus. Foreign Institutional Investors (FIIs) offloaded equities worth ₹5,285.37 crore on Thursday, according to exchange data. Markets in Europe were trading largely in the green, while U.S. markets ended higher on Thursday.
Developments across the financial services sector remained on investors' radar with mixed quarterly results. IIFL Finance reported that consolidated second-quarter net profit nearly doubled to ₹805 crore from ₹418 crore a year earlier, with revenue increasing to ₹4,246 crore from ₹3,305 crore and assets under management growing 38%. L&T Finance recorded a 33% year-on-year rise in consolidated net profit to ₹975 crore, with its loan book expanding 28% to ₹1.36 lakh crore and total income increasing 26% to ₹5,484 crore. Jio Financial Services reported consolidated revenue of ₹1,699 crore for the quarter, compared with ₹981 crore in the year-ago period, while ICICI Prudential Asset Management Company reported 18% revenue growth and 6% net profit growth in Q2FY27. Market experts emphasize that while the current momentum appears positive, investors should remain cautious about sustained recovery given ongoing foreign fund outflows and elevated crude oil prices. As per The Hindu, "Indian equities extended their recovery, led by sustained buying in IT stocks, as strong quarterly results and upbeat management commentary reinforced confidence in the sector's earnings outlook. Softer crude oil prices and a strengthening rupee further supported sentiment."
