Trading sentiment in the equity market this week is expected to be influenced by macroeconomic data, global trends, and quarterly earnings reports, particularly from IT leader Tata Consultancy Services (TCS), analysts noted.
Market participants are also likely to monitor foreign investors’ trading activities, as foreign portfolio investors (FPIs) were net sellers of Indian equities in September, withdrawing ₹23,885 crore (approximately $2.7 billion). This brings the total year-to-date outflow to ₹1.58 lakh crore (around $17.6 billion).
“This week will be critical as the Q2 FY26 earnings season begins, with TCS set to announce its results on October 9. On the macroeconomic side, the release of HSBC’s services and composite Purchasing Managers’ Index (PMI), in addition to banking sector data regarding loan and deposit growth, will be closely scrutinized,” said Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd.
Additionally, primary market activity is expected to remain robust, with significant IPOs from Tata Capital and LG Electronics planned.
Globally, key macroeconomic updates from the United States, including the Federal Open Market Committee (FOMC) minutes, jobless claims, and consumer sentiment data, will be closely watched, particularly given the ongoing government shutdown that has delayed some economic releases.
Investors will also keep an eye on the movement of the rupee against the US dollar, especially as the local currency has recently fallen to a record low.
“As macro cues stabilize, market focus will shift to Q2 earnings and management commentary, which could influence sector sentiment. The IT sector is expected to be in the spotlight as TCS commences the earnings calendar for the quarter ending September 2025— a period marked by layoffs, a significant $100,000 H-1B visa fee increase, and a proposed 25% outsourcing tax by the Trump administration,” stated Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm.
“The narrative from these updates is likely to determine sector sentiment in the coming weeks, with special attention to the implications of tariffs, visa costs, hiring outlook, deal wins, discretionary tech spending, and advancements in AI initiatives.”
Last week, the BSE benchmark index rose by 780.71 points, or 0.97%, while the Nifty index increased by 239.55 points, also or 0.97%.
“Indian equities concluded the holiday-shortened week with a positive outlook following recent corrections, as investor confidence was bolstered by the RBI’s optimistic growth stance,” said Vinod Nair, Head of Research at Geojit Investments Limited.
Published on October 5, 2025.
