Mumbai: India’s benchmark equity indices are poised to open on a positive note on Friday, fueled by encouraging corporate earnings and renewed foreign investor interest. Analysts predict the Nifty 50 index will open above its previous close of 25,181.8 points, reflecting sustained optimism among market participants. Over the past six sessions, the Nifty has recorded gains in five, marking a 2.3% rise, with information technology stocks leading the charge with a 6% rally.
The upbeat sentiment is largely supported by Tata Consultancy Services (TCS), India’s largest software services exporter, which reported revenue of ₹657.99 billion ($7.4 billion) for the July-September 2025 quarter. This represents a 2.4% increase compared to the same period last year and surpasses analysts’ estimates of ₹650.86 billion. The growth was driven primarily by strong performance in the banking, financial services, and insurance (BFSI) segment.
While net profit rose modestly by 1.4% to ₹120.75 billion, slightly below the projected ₹126.29 billion due to higher severance costs from planned workforce reductions, investor sentiment remained positive. Analysts highlighted TCS’s announcement to launch a new entity focused on world-class artificial intelligence infrastructure, seeing it as a forward-looking initiative that could drive future growth.
Market optimism has also been strengthened by renewed foreign portfolio investor (FPI) interest. Over the past three sessions, FPIs turned net buyers with total purchases amounting to ₹13.08 billion on Thursday alone, reversing a period of outflows and signaling renewed confidence in Indian equities. Domestic institutional investors, meanwhile, continued their buying streak, remaining net buyers for 32 consecutive sessions. This combination of domestic and foreign investor support has created a favorable environment for the markets to sustain their upward momentum.
Adding to the positive market sentiment is robust activity in India’s primary market. Notably, LG Electronics’ Indian unit launched a $1.3 billion initial public offering (IPO), marking the most subscribed billion-dollar offering in nearly two decades. This strong appetite for new listings underscores investor confidence in the country’s economic growth prospects and the resilience of its capital markets.
With strong corporate earnings, a surge in FPI inflows, and heightened IPO activity, India’s stock markets appear well-positioned for continued gains. Investors are closely monitoring upcoming corporate results and economic indicators to assess whether this bullish momentum can be maintained. Nevertheless, global economic uncertainties and domestic policy shifts remain potential headwinds that could influence market trends in the coming weeks.
The convergence of strong corporate performance and renewed foreign investor interest has set the stage for a promising start to trading on Friday, offering hope for sustained growth in India’s equity markets.