Mumbai, India – Indian stock markets experienced a subdued opening today, with the Sensex initially dipping by 100 points and the Nifty hovering around the 25,550 mark. This comes after a strong rally on Thursday, where both indices saw gains of over 1%, fueled by positive global cues, a strengthening rupee, and hopes of a rebound in corporate earnings.
At approximately 9:18 AM IST, the S&P BSE Sensex was trading lower, while the NSE Nifty 50 remained just above the 25,550 level.
Infosys Under Pressure
Shares of Infosys, a major IT services company, are under scrutiny today following the release of its Q2FY26 earnings report. While the company reported a 13% year-on-year increase in consolidated net profit, reaching ₹7,364 crore, and a 9% YoY rise in revenue to ₹44,490 crore, the stock has faced selling pressure. Infosys' American Depository Receipts (ADRs) also declined 2.25% to $16.07. Early trading saw Infosys shares fall by approximately 1%.
Key highlights from Infosys' Q2 results include:
- A 5.2% quarter-on-quarter (QoQ) increase in revenue to ₹44,490 crore.
- Revenue in dollar terms grew 2.7% QoQ to $5,076 million.
- EBIT increased 6.35% QoQ to ₹9,353 crore.
- EBIT margin improved by 20 bps QoQ to 21%.
- The company narrowed its constant currency revenue growth guidance for FY26 to between 2% and 3% from a previous range of 1% to 3%.
- An interim dividend of ₹23 per share was declared, with a record date of October 27, 2025.
Despite the positive earnings report, some analysts are adopting a cautious stance. Concerns include cautious management commentary, lower organic growth guidance, and reduced third-party revenue, which are expected to weigh on revenue growth. Nuvama Institutional Equities has maintained a "Buy" rating on Infosys but revised its target price slightly downward to ₹1,800 from ₹1,850.
Market Influences
Several factors are influencing market sentiment today. Asian markets are trading lower, mirroring overnight losses on Wall Street amid renewed concerns about the banking sector and escalating trade tensions. The GIFT Nifty signaled a muted start for the Indian benchmark.
However, there are also positive factors at play. Brent crude oil prices are testing $60 per barrel, which could aid markets. Foreign portfolio investors (FPIs) turned net buyers of Indian shares on Thursday. Optimism surrounding potential trade agreements between India and the US, along with expectations of monetary easing by the Reserve Bank of India (RBI), are also contributing to a favorable outlook.
Sectoral Performance
Several sectors experienced mixed performance. HCL Tech, Eternal, Tech M, Adani Ports, and Ultratech Cement were among the stocks dragging down the benchmarks, declining up to 2%. On the other hand, Asian Paints, Tata Motors, ITC, Bharti Airtel, Reliance Industries, M&M, and Maruti Suzuki saw gains, trimming the losses.
Technical Outlook
According to Rupak De, a Senior Technical Analyst at LKP Securities, the Nifty 50 has exceeded the resistance level of 25,500, suggesting the likelihood of a robust rally in the near term. The short-term outlook appears favorable, with the potential to reach between 25,750 and 25,800, while support is set at 25,500 on the downside.
Global Cues
Global markets are showing some weakness. The Dow Jones Industrial Average declined 0.65%, the S&P 500 dropped 0.63%, and the Nasdaq Composite closed 0.47% lower.
Investors will be closely monitoring global cues, Q2 earnings reports, and developments related to India-US trade talks for further direction in the market.
