Indian Equities Rebound Sharply as TCS Earnings Boost IT Stocks, Sensex Jumps Over 850 Points
The recovery follows yesterday's steep losses, with investors assessing corporate earnings and easing crude oil prices amidst global uncertainties.
The story
Indian equity markets staged a notable rebound on Friday, October 9, with the Sensex closing up 856.57 points (1.19%) at 72,449.81, and the Nifty 50 gaining 264.15 points (1.19%) to settle at 22,495.95. [5, 23] This recovery comes after a sharp sell-off on Thursday, October 8, where the Sensex plunged 1,045.46 points (1.44%) to 71,593.24, and the Nifty 50 declined 371.25 points (1.64%) to 22,231.80, marking its lowest closing in 21 months. [3, 8, 9] Today's rally was primarily driven by stronger-than-expected Q2 FY27 results from Tata Consultancy Services (TCS), which lifted sentiment across the IT sector. [2, 5, 7] The Nifty IT index climbed around 2.2%, with TCS shares advancing 4.34%. [2, 5] Gains were also seen in banking, financial services, and FMCG stocks. [2, 4, 5] Additionally, easing crude oil prices and a moderation in volatility, reflected by a 3.99% decline in the India VIX to 14.68, contributed to the positive mood. [2, 6, 31] Foreign Institutional Investors (FIIs) remained net sellers on Thursday, offloading ₹12,943.58 crore, while Domestic Institutional Investors (DIIs) provided support with net buying of ₹10,703.11 crore. [16, 19, 24]
The tape
| Instrument | Last | Change |
|---|---|---|
| Nifty 50 | 22,495.95 | +264.15 (+1.19%) |
| Sensex | 72,449.81 | +856.57 (+1.19%) |
| USD/INR | 96.74 | -0.04 (-0.04%) |
| India VIX | 14.68 | -0.61 (-3.99%) |
Flows & data
| Item | Reading | Read |
|---|---|---|
| FII Net Activity | -₹12,943.58 Cr (October 8, 2026) | Foreign Institutional Investors remained net sellers in the cash market. |
| DII Net Activity | +₹10,703.11 Cr (October 8, 2026) | Domestic Institutional Investors provided buying support in the cash market. |
IPOs & the primary market
Paramount Syntex IPO listed on the BSE SME platform on Friday, October 9, at ₹115, a 9.45% discount to its issue price of ₹127. [7, 31] Looking ahead, upcoming SME IPOs include Ravita Engineering Services, opening October 13-15, 2026, with a price band of ₹105-₹112, and Vaibhav Vyapaar, also opening October 13-15, 2026, with a price band of ₹50-₹52. [20, 25] The mainboard IPO for HD Fire Protect is scheduled for October 13-15, 2026, with a price band of ₹258-₹271. [25] Meanwhile, the unofficial Grey Market Premium (GMP) for Jio Platforms IPO stands at +₹176, or +16% over its price band, as of October 9, 2026. [29]
Valuation watch — India & global
As of October 8, 2026, the Nifty IPO PE ratio stood at 104.17, which is approximately 77% higher than its 1-year median of 58.85, indicating that the index is in significantly overvalued territory historically. [18] Despite this, the broader Indian market, as measured by the Nifty, is trading at a PE ratio of 22.9x, which is lower than its 3-year average PE of 25.5x. [21] This suggests a divergence in valuations between the overall market and the recent IPO cohort. Global bond yields, such as the US 10-year Treasury yield remaining elevated near 5.28% on October 8, continue to exert pressure on valuations for emerging markets. [17]
What we'll be watching
- Q2 FY27 results from Billionbrains Garage Ventures on October 14, 2026. [21]
- Ravita Engineering Services SME IPO opens on October 13, 2026. [20, 25]
- Vaibhav Vyapaar SME IPO opens on October 13, 2026. [20, 25]
- HD Fire Protect Mainboard IPO opens on October 13, 2026. [25]
- Monitoring crude oil prices amidst geopolitical tensions. [4, 6, 7, 15]
- Tracking FII flows for signs of sustained buying or continued outflows. [5, 8, 15, 17]
Reporting + analyst voices: grounded via Google Search at publish time.