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Market weekly wrap: SENSEX, NIFTY50 jump 3% led by strong rally in IT stocks; Tech Mahindra, TCS lead gains
6 min read | Updated on October 17, 2026, 09:32 IST
SUMMARY
On a weekly basis, broader markets ended mixed and underperformed the main indices as well. Among sectors, the NIFTY IT was the biggest winner, with a rally of 11.7%.
Stock list
The IT stocks staged a strong rally this week as equity market investors focused on the healthy earnings performance so far in the Q2 results season. Image: Shutterstock
The Indian equity market closed 3% higher in the week ended October 16, extending gains for a second consecutive week. A strong rally in IT stocks helped the benchmark indices settle in positive territory.
Further, corporate earnings, the Reserve Bank of India’s (RBI) measures to support the rupee and the delay in implementing UPI MDR fees were among the key factors that added to the market sentiment for the week.
However, elevated crude oil prices remained a concern but did not prevent the market from closing higher. Over the week, Brent crude touched a high of $110 per barrel on Friday after beginning at $104.95 per barrel on Monday.
The IT stocks staged a strong rally this week as equity market investors focused on the healthy earnings performance so far in the Q2 results season amid strong revenues from AI operations. The IT pack also witnessed momentum after Infosys CEO Salil Parekh said that AI services accounted for over 8% of its revenue in the second quarter and are growing at a double-digit rate sequentially.
Weekly gainers and losers
| NIFTY50 GAINERS | NIFTY50 LOSERS |
|---|---|
| Tech Mahindra (18.2) | Nestle India (-5.1%) |
| Tata Consultancy Services (14.3%) | Max Healthcare Institute (-4.3%) |
| Infosys (13.5%) | InterGlobe Aviation (-3%) |
| HCL Technologies (13.4%) | Larsen & Toubro (-2.1%) |
| Bajaj Auto (6.4%) | Apollo Hospitals (-1.7%) |
The central bank announced three measures to support the rupee: a dedicated window for public sector oil marketing companies (OMCs) to buy US dollars directly from the central bank, an open-market sale of ₹25,000 crore in government securities and a requirement for banks to maintain 99% of the prescribed cash reserve ratio (CRR) daily from October 16, 2026.
Broader market update
On a weekly basis, broader markets ended mixed and underperformed the main indices as well. The NIFTY Midcap 100 closed 0.6% higher, while the NIFTY Smallcap 100 slipped marginally by 0.1%.
| NIFTY MIDCAP 100 GAINERS | NIFTY SMALLCAP 100 GAINERS |
|---|---|
| Suzlon Energy (11.7%) | Tata Elxsi (23%) |
| Waaree Energies (10.4%) | Gallantt Ispat (21%) |
| UPL (9.5%) | HBL Engineering (15.9%) |
| The Indian Hotels Company (7.9%) | KPIT Technologies (15.9%) |
| Havells India (7.6%) | Syngene International (11.1%) |
Shares of Waaree Energies posted sharp gains for the week, drawing investor attention following the company’s recent updates. On September 30, its wholly owned subsidiary, Waaree Power Private Limited, had commenced commercial production on a new solar inverter manufacturing line with an annual capacity of 1.10 GW in Valsad, Gujarat.
| NIFTY MIDCAP 100 LOSERS | NIFTY SMALLCAP 100 LOSERS |
|---|---|
| Yes Bank (-14.6%) | Sterlite Technologies (-14.7%) |
| Apar Industries (-10.8%) | RR Kabel (-11.7%) |
| ICICI Prudential AMC (-7.2%) | Anant Raj (-10.3%) |
| Fortis Healthcare (-6.3%) | RBL Bank (-9.5%) |
| Exide Industries (-6.3%) | MTAR Technologies (-9.3%) |
Shares of RBL Bank also tumbled as investors reacted to the company’s July to September quarter earnings performance trailing behind expectations amid elevated credit costs, equity fundraising impact and muted EPS growth.
Despite the healthy overall Q2 growth, a deeper dive into the financials showed RBL Bank’s credit cost increased 53% on a year-on-year basis to ₹771 crore, from earlier ₹503 crore levels.
Sectoral watch this week
Among sectors, the NIFTY IT was the biggest winner, with a rally of 11.7%. It was followed by gains in NIFTY Media and NIFTY Auto, which jumped 61% and 3.7%, respectively. The NIFTY Realty (2.7%) and NIFTY India Defence (2.3%) were the other top gaining sectors of the week.
On the other hand, NIFTY Pharma (-0.7%), NIFTY FMCG (-0.6%) and NIFTY PSU Bank (-0.4%) were the only sectoral losers. However, the India VIX index slipped 2.2% this week.
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