In the week ended Friday, 16 October 2026, the NIFTY50 index delivered about 2.5% returns over the last five trading sessions, while the BSE SENSEX rose 0.62% to 74,778.78 points from 74,315.61 points at the previous close. During Friday’s session, the NIFTY50 surged 0.66% to an intraday high of 23,149 points, compared with 22,997.35 points at the prior close, according to NSE data. Investors focused on Q2 earnings momentum, with companies posting healthy results and positive guidance amid global market pressure from elevated oil prices, US Treasury yields above 5%, and selling pressure in AI‑related stocks.

IT stocks such as Tech Mahindra, Tata Consultancy Services (TCS), HCL Technologies and Infosys emerged as the top‑performing names in the NIFTY50 during the week. The sector benchmark Nifty IT index rose more than 11% this week, whereas the NIFTY50 was up only 2.7%. Tech Mahindra’s shares outperformed the benchmark with a 5‑day return of 17.5%, a 1‑month return of 14.2% and a year‑to‑date return of 10.7%. TCS posted a 5‑day return of 13.6%, a 1‑month return of 11.9% and a YTD return of –24%.

Tech Mahindra’s Q2 earnings showed net profits rising 8.2% sequentially to ₹1,465 crore and revenues up 3% quarter‑on‑quarter. Year‑on‑year, profits surged 33% and revenues advanced 15.6% to ₹15,712 crore. The company announced a ₹15 per share interim dividend and a 1:1 bonus issue of equity shares. TCS reported consolidated net profits up around 15% to ₹13,884 crore, with core operations revenue advancing 11.2% YoY to ₹73,188 crore. Operating profit rose 4.6% YoY, but EBITDA margins contracted 162 basis points to 25.70%.

HCL Technologies recorded nearly 11% growth in consolidated profits, an 11.5% surge in core revenue YoY and a 3% sequential jump in Q2 FY27. The company’s Q2 earnings matched or slightly exceeded market estimates, supporting investor sentiment. HCL now expects revenue growth of 2.5%–4% YoY in constant currency terms for the current fiscal year. Infosys, scheduled to announce its Q2 results on 23 October 2026, is also expected to consider an interim dividend for the 2026‑27 year, adding to the positive momentum for IT stocks.

Auto stocks such as Bajaj Auto, Eicher Motors and Mahindra & Mahindra joined the top‑10 performers. Bajaj Auto posted a 5‑day return of 6.6%, a 1‑month return of –10% and a YTD return of 9%. Eicher Motors showed a 5‑day return of 2.7%, a 1‑month return of –3.4% and a YTD return of –1.4%. Mahindra & Mahindra recorded a 5‑day return of 4.1%, a 1‑month return of –5% and a YTD return of –22.6%. These gains were driven by festive season demand expectations during Navaratri, Durga Puja and Diwali.

Other top gainers included Bharti Airtel, HDFC Bank and Ultratech Cement. Bharti Airtel achieved a 5‑day return of 5.2%, a 1‑month return of 3.5% and a YTD return of –10%. HDFC Bank posted a 5‑day return of 2.4%, a 1‑month return of 0.4% and a YTD return of –27%. Ultratech Cement recorded a 5‑day return of 2.5%, a 1‑month return of 2.3% and a YTD return of –8%. HSBC analysts noted that Indian equity markets offer attractive valuations, encouraging investors to focus on non‑AI stories amid global tensions and higher US inflation data. The RBI estimates inflation could reach 6% in the third quarter of FY27 due to the West Asia crisis.