Indian shares are poised for a firm opening after the Sensex surged more than 1,500 points, but mixed Wall Street cues, uneven earnings and key derivatives levels could test the rally.
Indian equities set up for a firm opening on Thursday after the previous session delivered a broad-based rally, with banks, information technology and auto shares doing much of the heavy lifting. The Sensex jumped 1,533.72 points to 74,315.61, while the Nifty 50 gained 374.65 points to end at 22,997.35, helped by expiry-related flows in Sensex derivatives. The move left traders watching whether the market could extend momentum after a strong close rather than give back gains at the open.
Sentiment overseas was less supportive. Wall Street was mixed, with the Dow Jones Industrial Average holding higher while the S&P 500 and Nasdaq Composite came under pressure as investors weighed heavy spending on artificial intelligence against a hotter-than-expected inflation reading. Earlier coverage from Mint noted that weak global cues had already been shaping Indian market expectations, with traders cautious about the spillover from geopolitics, oil prices and inflation. That backdrop kept attention on whether domestic strength could offset a softer tone abroad.
Company results were another major driver. Wipro’s September quarter numbers came in broadly in line with market estimates on revenue, but profit, EBIT and margins missed forecasts, underscoring the pressure facing parts of the IT sector. Tech Mahindra fared better on operating performance, with revenue, EBIT and margins ahead of estimates, though net profit fell short. HDFC Life posted a healthy increase in both premium income and profit, while Persistent Systems reported higher revenue but a sharper drop in margins and earnings. Among financial names, IIFL Finance and L&T Finance posted strong profit growth, while 360 ONE WAM and Jio Financial Services reported weaker bottom-line trends despite changes in income.
News flow from individual companies was equally active. Hexaware Technologies is due to consider a second interim dividend later in the month, while CSB Bank denied reports that it is in merger talks with IDBI Bank. Akums Drugs said it had received a Rs 53 crore demand notice from the Pharma Department, and RVNL signed an agreement with Damodar Valley Corporation to develop railway infrastructure linked to power plants. Aditya Birla Capital allotted non-convertible debentures worth Rs 400 crore, PFC said it had received the Reserve Bank of India’s no-objection certificate for the merger of REC with PFC, and Yes Bank said it is awaiting the final Supreme Court judgement copy before making further disclosures. Elsewhere, Maruti Suzuki said an income tax appellate order covering eight years trimmed the interest component by Rs 6,300 crore, a development that could matter for investor perception even as the underlying tax case remains open.
In the near term, traders will also be watching derivatives data and the calendar of upcoming earnings. Nifty October futures were seen trading at a small discount to the cash index, while options positioning showed significant open interest at 24,000 on calls and 22,500 on puts. Several stocks remained in the ban period, and the Securities and Exchange Board of India’s revised closing auction framework continued to be a topic of market attention. Looking ahead, results from Bajaj Housing Finance, DLF, Federal Bank, Punjab National Bank, Tejas Networks, Ujjivan Small Finance Bank and Urban Company are among the reports set to shape sentiment in the next session.
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