Nifty Consolidates Ahead of Major Earnings
The Indian stock market ended the day on a negative note, with the Nifty 50 closing near 25,700 and the Sensex down by 250 points. The market had started the day on a positive note, with the Nifty 50 opening 0.42% higher at 25,897.35 and the Sensex opening 0.24% up at 84,079.32. However, the gains were short-lived, and the market gave up its gains to close in the red.
The expiry day volatility and the mixed response to Tata Consultancy Services Ltd.‘s third quarter performance were some of the factors that contributed to the market’s negative close. The Street broadly agreed that while the quarter was largely in line on headline numbers, underlying trends in international markets remain soft.
Morgan Stanley’s View on TCS
Morgan Stanley maintained an Overweight rating on TCS and raised its target price to Rs 3,540 from Rs 3,430. While it noted that underlying trends were softer than expected — especially in international business growth — the brokerage highlighted management commentary pointing to momentum holding up into calendar year 2026.
Stable margins near 25%, with management expressing confidence of moving towards 26%, and expectations of fiscal 2026 exiting at a better growth rate than last year were seen as key positives supporting FY27 assumptions. The brokerage also sees early silver linings in the company’s AI journey, with proof-of-concept projects moving into production and AI revenues scaling up, even though the sector remains in a transition phase.
Impact on Investor Sentiment
The mixed response to TCS’ Q3 results and the expiry day volatility have contributed to a cautious investor sentiment. Investors are now waiting for the upcoming earnings reports from other major companies to get a clearer picture of the market’s direction.
Meanwhile, the Nifty 50 is expected to remain range-bound in the near term, with the 25,500-26,000 range acting as a crucial support and resistance zone. The Sensex is also expected to follow a similar trend, with the 84,000-85,000 range being closely watched by investors.
Top Stocks in Focus
Some of the top stocks that are expected to be in focus in the coming days include Infosys, Wipro, and HCL Technologies. These companies are expected to report their Q3 earnings in the coming days, and their results will be closely watched by investors.
In addition to these stocks, investors will also be keeping an eye on the banking sector, which has been under pressure in recent times. The State Bank of India and ICICI Bank are some of the major banks that are expected to report their Q3 earnings in the coming days.
Conclusion
In conclusion, the Indian stock market ended the day on a negative note, despite a positive start. The expiry day volatility and the mixed response to TCS’ Q3 results were some of the factors that contributed to the market’s negative close. Investors will now be waiting for the upcoming earnings reports from other major companies to get a clearer picture of the market’s direction.
