Indian Shares Inch Higher: IT Stocks Lead, Oct 2026

Indian shares inched higher on Friday, recovering from a recent slide, as information technology (IT) stocks led the gains. The benchmark BSE Sensex rose 0.2% to close at 58,387.93, while the broader NSE Nifty ended 0.1% higher at 17,385.40. The IT sector outperformed, with the Nifty IT index climbing 0.8%, driven by buying in major software exporters. Analysts say the rebound was supported by value buying after the recent correction, though global cues remained mixed. The Indian rupee weakened slightly against the US dollar, ending at 82.75. Foreign institutional investors (FIIs) were net buyers, purchasing equities worth ₹1,234 crore, according to provisional exchange data. Domestic institutional investors (DIIs) also supported the market, buying shares worth ₹987 crore. Market breadth was positive, with 1,456 advances and 1,234 declines on the BSE. The volatility index, India VIX, eased 2.3% to 18.45, indicating reduced fear among traders. Among individual stocks, Infosys rose 1.2%, TCS gained 0.9%, and Wipro advanced 1.5%. On the other hand, banking stocks lagged, with HDFC Bank down 0.3% and ICICI Bank falling 0.2%. The auto sector was mixed, with Maruti Suzuki up 0.4% and Tata Motors down 0.6%. Analysts say the market is likely to remain range-bound in the near term, with focus on quarterly earnings and global economic data. The recent slide was attributed to profit-taking and concerns over rising bond yields. However, strong domestic fundamentals and expectations of a pause in rate hikes by the US Federal Reserve have provided support. In October 2026, the market has been volatile, with the Sensex swinging between gains and losses. The IT sector has been a standout performer, benefiting from a weaker rupee and steady deal wins. According to analysts, the outlook for IT stocks remains positive, given the digital transformation trend. However, they caution that valuations are not cheap and any disappointment in earnings could trigger a correction. The broader market is also watching the upcoming festive season, which could boost consumer spending. The government's push for infrastructure and manufacturing is expected to support economic growth. In the near term, investors are advised to be selective and focus on quality stocks. The market is expected to take cues from global markets, especially the US, where inflation and employment data will be released next week. Additionally, the Reserve Bank of India's monetary policy meeting later this month will be closely watched. Analysts say a status quo on rates is likely, given the easing inflation. Overall, the Indian market remains resilient, but volatility cannot be ruled out. Investors should maintain a long-term perspective and avoid knee-jerk reactions. For more insights, visit MarketToMoney.

Analysts say the rebound was supported by value buying after the recent correction, though global cues remained mixed.

In conclusion, Indian shares managed to inch higher after a recent slide, with IT stocks leading the charge. The market is expected to remain volatile in the coming sessions, but the underlying trend is positive. Investors should keep an eye on global developments and domestic earnings. For more detailed analysis and updates, visit MarketToMoney.