TCS lifts Dalal Street out of its eight-week rut

Equities staged a sharp recovery on Friday, ending an eight-week losing streak, as Tata Consultancy Services (TCS) reported impressive quarterly results and geopolitical tensions eased, helping to lift India's major stock indices. The Nifty 50 closed 1.30 percent higher at 22,520.45, while the BSE Sensex gained 1.23 percent to 72,472.33, marking the first positive weekly close after a string of declines.

Bank Nifty led the gains, rising 1.36 percent to 55,256.65. Over the week, the Nifty ended up 0.44 percent and the Sensex added 562 points, a first since eight consecutive weekly losses. Ajit Mishra, SVP, Research at Religare Broking, described the rebound as a relief rally, anticipating further gains if the index sustains strength above key resistance levels.

TCS shares surged around 5 percent after the IT giant reported 15 percent profit growth for the September quarter, driven by strong artificial intelligence-related revenue and significant deal wins. Investors also dismissed concerns over the US suspending major technology companies from the PERM employment-based green-card program, as clarifications assured that existing H-1B visas remained unaffected.

Reduced geopolitical tensions after President Trump signaled no military action against Iran ahead of the November midterm elections also contributed to the rally, as Brent crude prices dropped below $104 a barrel, easing inflation worries that had negatively impacted sentiment the previous session. Global bond yields also moderated, further aiding the market.

Stocks across various sectors closed in the green, with IT, FMCG, banking, automobile, and consumer durables performing well. Only Nifty Oil & Gas underperformed, closing marginally lower. Market breadth improved to an advances-declines ratio of 1.35. The Nifty Midcap 100 rose 1.56 percent and the Nifty Smallcap 100 gained 0.54 percent, indicating broad-based market participation.

The Nifty 100 also joined the recovery, with the rupee gaining 5 paise to close at 96.71 against the dollar, following three days of weakness. Dilip Parmar of HDFC Securities attributed the currency's gain to easing crude oil prices and a surge in risk appetite across global markets, with potential central bank intervention providing additional support.

He identified near-term USDINR resistance at 97 and support at 95.30. For the week, FMCG and PSU banks led with gains of 2.45 percent and 2.38 percent, respectively, while real estate and metals lagged, both falling more than 3.5 percent. The Nifty's weekly candle printed a Doji, a classic indecision signal, after the index briefly breached the April 2026 low of 22,182.55 before recovering.

Analysts note that the 22,600-22,800 band will be the key resistance zone for the Nifty next week; a sustained close above it could propel the index towards 23,000, while a slip below 22,300-22,400 would re-energize the bears. Factors to monitor include foreign fund outflows, persistent crude oil prices, and tight global monetary conditions.