The stock market remained bullish for the second consecutive day on Friday. Sensex rose by almost 400 points to cross 82,568 and Nifty rose by 103 points to reach 25,285. Buying was seen in real estate, bank and IT stocks, while shares of metal and pharmaceutical companies remained under pressure. There were several reasons for the rise in the market, including continued buying by foreign institutional investors, TCS results, strong IPO liquidity and hopes of a trade deal after the Modi-Trump talks.
Main reasons for market rise
1. TCS results improve sentiment – Tata Consultancy Services (TCS) reported 1.4% year-on-year growth in Q2FY26 profit at ₹12,075 crore. The company’s revenue stood at ₹65,799 crore. The results were in line with expectations, restoring confidence in the IT sector. Shares of TCS fell marginally, while those of its rivals like Infosys and Wipro rose 1% each. “TCS valuations are attractive. We are targeting ₹3,500, which implies a potential upside of around 15%,” said Motilal Oswal.
2. IPO refunds have returned liquidity to the market – One of the major reasons for the recent rally is the withdrawal of funds from the IPO market. Both the ₹15,512 crore Tata Capital IPO and the ₹11,607 crore LG Electronics India IPO received a good response. LG’s issue was subscribed 54 times. Now, refunds from these IPOs are coming back into investors’ accounts, bringing fresh liquidity to the market. VK of Geojit Investments According to Vijayakumar, “The heat of the IPO market and liquidity generated from refunds have pulled the market upwards.”
3. Trump-Modi talks raise hopes of trade deal – Prime Minister Narendra Modi spoke to US President Donald Trump over phone and reviewed “progress in trade talks”. This has increased expectations of a possible agreement between the two countries. Trump had earlier increased the import duty on Indian goods by 50%. If an agreement is reached, it will be a positive sign for Indian markets. Additionally, the US has indicated that India will buy more American oil rather than Russian oil in the future.
4. Continuous buying by foreign investors – Foreign investors have been net buyers in the market for the last three trading sessions. This inflow of foreign funds has strengthened the sentiment. Analysts say the peace agreement on Gaza conflict and US-India trade talks have boosted the confidence of foreign investors. “Short positions are still high, so short covering may take the market higher,” said Vijayakumar of Geojit.
5. Rise in bank shares – Maximum buying was seen in banking shares. Bank Nifty crossed the psychological level of 56,500 and reached 56,548. Almost all bank shares remained in the green. SBI, PNB, Axis Bank and Canara Bank registered gains of more than 1%.
According to Shrikant Chauhan of Kotak Securities, “As long as Nifty remains above 25,000 and Sensex above 81,700, the bullish trend is likely to continue. If Nifty crosses 25,250, the next target could be 25,500.”
Way Forward – Technically, the market will now remain between the support of 25,000 and resistance of 25,350-25,500. Analysts believe that as long as money inflows from foreign investments and IPOs continue, sentiment will remain positive.
Today’s second quarter results
Many mid-cap and small-cap companies are releasing their quarterly results (Q2FY26) today—Elecon Engineering Company
Indosolar Limited
Waari Renewable Technologies
Yash High Voltage Limited
GK Energy Limited
Hathway Bhawani Cabletel & Datacom Limited
AAA Technologies Limited
Affordable Robotics and Automation Limited
Evoke Remedies Ltd
Intense Technologies Limited
Oswal Overseas Limited
Pro Fin Capital Services Limited
The results of these companies will create turmoil in the mid-cap and energy sectors.
Will keep an eye on them
Among companies declaring results on Thursday—TCS: The company reported revenue of ₹65,799 crore and profit of ₹12,075 crore. The market was positive about AI data center plans and the Salesforce acquisition.
Tata Elxsi: Results were in line with expectations, but brokerage firms have expressed caution on FY26 growth. There may be fluctuations in shares. 5Paisa Capital: This stock will be worth keeping an eye on the growing customer base and improvement in margins in the fintech space.
IPO Update:
Mainboard:
Canara HSBC Life Insurance IPO opens for subscription today.
WeWork India Management will be listed today.
The basis of allotment for LG Electronics India’s IPO will be decided today.
