Daijiworld Media Network - Mumbai
Mumbai, Oct 18: Quarterly earnings, crude oil prices, the upcoming initial public offering (IPO) of Jio Platforms and foreign investor activity are expected to drive market sentiment in the holiday-shortened week ahead, analysts said.
Developments in West Asia and movements in the rupee against the US dollar will also remain in focus.
Indian equities enter the week with improved momentum after posting gains for two consecutive weeks, supported by a strong recovery in information technology stocks. However, elevated crude oil prices, geopolitical uncertainty, global bond market movements and uneven market breadth continue to warrant caution, market experts said.
Ponmudi R, CEO of online trading and wealth technology firm Enrich Money, said investors would assess whether the recent rally extends beyond IT stocks and whether benchmark indices can sustain gains above immediate resistance levels.
The proposed Jio Platforms IPO, opening for subscription on October 21, is another major event to watch, particularly for its potential impact on market liquidity and investor allocations, he added.
Stock markets will remain closed on Tuesday for Dussehra.
Banking stocks are likely to attract attention following the September-quarter results announced by HDFC Bank, ICICI Bank and Axis Bank over the weekend.
HDFC Bank reported a 5.55 per cent increase in consolidated net profit to Rs 20,700 crore for the September quarter, noting that the impact on treasury operations restricted profit growth.
ICICI Bank posted a 22.28 per cent rise in consolidated net profit to Rs 16,333.18 crore, compared with Rs 13,357.06 crore in the corresponding quarter last year.
Axis Bank reported a 39.4 per cent increase in net profit to Rs 7,704.67 crore for the second quarter of 2026-27, supported by higher core income and improved asset quality.
With the Q2 FY27 earnings season gathering pace, stock-specific and sector-specific movements are expected to continue. Bajaj Finance, UltraTech Cement, Hindustan Zinc, Union Bank of India, IREDA, Infosys, Coforge, Crisil and Swiggy are among the companies scheduled to announce their results this week, said Siddhartha Khemka, head of research for wealth management at Motilal Oswal Financial Services.
Jio Platforms, the digital and telecom arm of Reliance Industries, has fixed the price band for its IPO at Rs 1,065 to Rs 1,119 per share. The offering could raise around Rs 30,213 crore at the upper end of the price band, potentially making it India's largest IPO.
The issue comprises a fresh offering of up to 27 crore equity shares with a face value of Rs 10 each. Subscription will open on Wednesday, October 21, and close on Friday, October 23.
Last week, the BSE Sensex surged 2,256.94 points, or 3.11 per cent, while the NSE Nifty gained 625.7 points, or 2.77 per cent.
Ajit Mishra, senior vice-president of research at Religare Broking, said movements in US Treasury yields, crude oil prices and geopolitical developments would remain important market drivers because of their implications for imported inflation, the rupee and corporate profitability.
Foreign institutional investor activity and currency movements will also be closely monitored to assess whether the recent market recovery can be sustained.