Indian equity markets rebounded on Friday, October 9, as the Sensex and Nifty recovered from the previous session’s sharp losses, supported by strong buying in information technology stocks and improving global sentiment. The Sensex surged over 800 points during the session, while the Nifty 50 moved above the 22,450 mark, giving investors some relief after Thursday’s steep sell-off.
The rally was led by heavyweight technology companies, including Tata Consultancy Services (TCS) and Infosys, as investors responded positively to quarterly earnings and renewed interest in technology shares. Easing crude oil prices and hopes of a temporary pause in escalating tensions between the United States and Iran also helped support sentiment.
The recovery, however, remained uneven, with selling pressure in select heavyweight stocks limiting broader market gains.
IT stocks lead the recovery
Information technology shares emerged as the biggest drivers of Friday’s rally. TCS, Infosys, HCL Technologies and Tech Mahindra attracted buying interest, lifting the Nifty IT index by more than 3% during the session. TCS and Infosys rose as much as 5%, making them among the notable contributors to the benchmark indices’ advance.
Investors responded to TCS’s September-quarter performance, which showed growth in both revenue and net profit. The company’s consolidated net profit increased 15% year-on-year to ₹13,884 crore in the second quarter of FY27, compared with ₹12,075 crore in the corresponding quarter a year earlier. Revenue rose 11% to ₹73,188 crore from ₹65,799 crore.
The results helped improve confidence in the technology sector, which has faced concerns over global technology spending, changing client priorities and the possible impact of artificial intelligence on traditional IT services. Investors appeared encouraged by the company’s performance and opportunities arising from AI-led demand.
The gains in IT stocks also helped restore some confidence following the recent weakness in the broader market. However, investors are likely to track upcoming earnings announcements to assess whether the recovery can extend beyond a handful of large companies.
Banking and other heavyweight stocks support gains
Buying interest extended beyond technology shares, with several banking, consumer and industrial stocks trading higher. ITC, Adani Ports, HDFC Bank, Power Grid, Bajaj Finserv, Tata Steel, Trent, State Bank of India, Maruti Suzuki and Kotak Mahindra Bank were among the notable gainers, with some advancing by up to 3%.
The rise in banking and financial stocks provided additional support to the benchmark indices, while gains in consumer and industrial shares indicated a broader improvement in risk appetite.
However, the market did not see uniform buying across all major companies. Eternal, Reliance Industries, ICICI Bank and Bharat Electronics were among the stocks facing selling pressure at different points during the session. Their weakness highlighted the cautious approach adopted by investors despite the strong headline gains.
Sectoral performance also reflected this mixed trend. Along with IT, FMCG, public sector banks, private banks, real estate and financial services recorded gains. Pharmaceutical and oil and gas stocks, meanwhile, remained under pressure.
Crude oil prices and global developments in focus
A decline in crude oil prices offered additional support to Indian equities. Brent crude futures fell around 0.7% to $103.53 per barrel in early trade, while US West Texas Intermediate crude slipped approximately 0.6% to $90.97 per barrel.
Oil prices had risen sharply in the previous session amid concerns about potential disruptions to energy supplies from the Middle East. The subsequent easing helped reduce some pressure on oil-importing countries such as India, where elevated crude prices can increase import costs, fuel inflation and widen the current account deficit.
Comments from US President Donald Trump indicating that fresh strikes against Iran would not take place immediately also helped ease some concerns about an escalation in the conflict. Nevertheless, geopolitical uncertainty continued to weigh on sentiment, with investors closely monitoring developments in the region and the security of key shipping routes.
The movement in the rupee and US bond yields also remained important for domestic markets. A stronger rupee and easing bond yields can improve the outlook for foreign investment flows, although sustained stability in these indicators will be necessary to support a more durable recovery.
Thursday’s losses keep investors on guard
Friday’s rebound followed a difficult session on Thursday, October 8, when the Sensex plunged 1,045.46 points, or 1.44%, to close at 71,593.24. The Nifty 50 dropped 371.25 points, or 1.64%, to settle at 22,231.80.
The sharp decline reflected concerns over rising crude oil prices, rupee weakness, higher US bond yields and continued selling by foreign institutional investors. The sell-off also erased more than ₹10 lakh crore in investor wealth, underscoring the pressure on domestic equities.
Foreign institutional investors remained a key concern after reportedly recording net equity outflows of nearly ₹12,944 crore on October 8. Persistent overseas selling has weighed on large-cap stocks and contributed to the recent volatility.
Market participants will now watch whether Friday’s recovery can be sustained in the coming sessions. Movements in crude oil prices, developments in the US-Iran conflict, foreign investor activity and corporate earnings are expected to influence market direction.
Although the rally offered a welcome respite after Thursday’s sharp decline, investors may remain selective until there is greater clarity on global risks and the domestic earnings outlook. The ability of the benchmark indices to hold on to their gains will be crucial in determining whether the rebound marks the beginning of a sustained recovery or a temporary pause in the recent downturn.