Indian Stocks Rebound After Tata Consultancy Services Profit Surge

Indian equity benchmarks, the Sensex and Nifty, rebounded on October 9 after hitting multi-year lows. The rally followed two sessions of losses driven by rising oil prices and fears of monetary tightening by the Reserve Bank of India.

Tata Consultancy Services drove the recovery, with its shares rising 5% after the company reported a 15 percent year-on-year increase in Q2 consolidated net profit and accelerated AI-related revenue. The Nifty IT index rose over 3%, further supported by a U.S. government announcement regarding the Permanent Labor Certification Program (PERM).

Geopolitical tensions eased after President Donald Trump ruled out attacking Iran before the November 3 midterm elections. This statement, combined with a 1.11% decline in Brent crude prices to $103 per barrel, helped stabilize markets. These gains occurred despite global volatility, including a significant single-day loss for the Nasdaq amid concerns over AI spending and reports that OpenAI's annualized revenue was significantly lower than previously signaled.

While domestic institutional investors supported the rally, foreign institutional investors remained aggressive net sellers, offloading equities worth Rs 12,943 crore on the preceding Thursday.