India shares muted IT gains on Thursday, October 9, 2025, faced offsets from financial sector dips, keeping the BSE Sensex and NSE Nifty 50 flat at 81,853.01 and 25,071.3 points by 9:50 a.m. IST. This performance reflects investor caution ahead of quarterly results, with foreign portfolio investors turning net buyers after a 10-day sell-off.
Sensex Nifty Flat Financials Offset IT Rally
The BSE Sensex rose 0.1 per cent to 81,853.01 points in early trade. The NSE Nifty 50 mirrored this with a 0.1 per cent gain to 25,071.3. These levels mark a continuation of recent consolidation, where Sensex Nifty flat financials offset IT rally dynamics dominate trading.
IT stocks led advances, climbing 0.4 per cent. The sector sub-index posted a 4.7 per cent surge over the prior five sessions. Tata Consultancy Services (TCS) edged up 0.2 per cent ahead of its September quarter earnings release later that day. Other IT majors contributed to the momentum, buoyed by prospects of foreign inflow into technology services.
Financials countered this uptick, declining 0.3 per cent for the second consecutive session. Profit-booking followed a rally spurred by Reserve Bank of India (RBI) lending reforms and pre-earnings bank updates. Banking heavyweights saw selective selling, tempering broader gains.
Seven of 16 major sectors advanced. Metals topped the list with a 1.6 per cent rise, driven by global base metal price increases on supply disruptions, including issues at Freeport’s Grasberg mine in Indonesia. Mid-cap stocks gained 0.3 per cent, while small-caps added 0.1 per cent.
This Sensex Nifty flat financials offset IT rally pattern highlights market resilience despite global uncertainties. Foreign portfolio investors (FPIs) snapped a 10-day selling streak, registering net purchases on October 7 and 8. NSE data shows FPIs bought INR 81.28 crore worth of equities on October 8, reversing prior outflows.
Sector Spotlights and Company Movers
India shares muted IT gains found footing in the technology space. TCS, India’s largest IT firm by market capitalisation, prepared to unveil Q2 results, drawing focus from global clients on digital transformation spends. The company’s shares traded at INR 4,200 apiece, reflecting optimism tempered by macroeconomic headwinds.
Analysts noted persistent challenges. VK Vijayakumar, chief investment strategist at Geojit Investments, said: “The results season starting today will be keenly watched by the market. IT stocks have witnessed some recovery from the bottom, but the headwinds for the segment continue to be strong.”
Broader IT recovery aligns with foreign inflow prospects. FPIs, key drivers of liquidity, shifted to buying mode, supporting valuations in export-oriented sectors.
Financials Face Profit-Taking
Financial services weighed on benchmarks, with a 0.3 per cent drop. Private banks like HDFC Bank and ICICI Bank shed gains from RBI’s recent rate decisions. The central bank’s reforms eased lending norms, but investors locked in profits ahead of earnings disclosures.
NSE provisional data for October 6 indicated FPIs as net sellers of INR 213.54 crore in equities, though the trend reversed mid-week. Domestic institutional investors (DIIs) provided counterbalance, netting INR 4,881.60 crore purchases on the same day.
Metals and Other Gainers
Metals surged 1.6 per cent on commodity tailwinds. Hindalco Industries and Tata Steel advanced over 2 per cent each, tracking London Metal Exchange copper and aluminium futures.
Pharma and realty also shone. Lupin climbed 3.6 per cent after announcing a new US pharmaceutical plant. Prestige Estates Projects rose 3.5 per cent on 50 per cent Q2 sales growth to INR 3,200 crore.
Foreign Inflows Signal Confidence
Foreign investment flows underpin the muted trading. After net outflows of USD 10 billion in Indian equities and bonds year-to-date through August, September saw stabilisation. SEBI data via NSDL reports FPI net investments turning positive in early October.
NSE’s FII/DII trading activity underscores this shift. On October 8, FPIs recorded gross purchases of INR 10,286.98 crore against sales of INR 10,205.70 crore, yielding a net inflow of INR 81.28 crore. This contrasts with October 6’s net outflow of INR 213.54 crore.
SEBI’s recent regulatory tweaks further bolster inflows. On October 8, the markets regulator revised block deal norms, raising the minimum size to INR 100 crore from INR 50 crore. This enhances transparency in large trades, potentially attracting more institutional participation.
“These changes aim to deepen market liquidity,” a SEBI spokesperson noted in a press release. The framework introduces defined trading windows for T+1 and optional T+0 settlements, curbing off-market risks.
Such measures matter for South Asia, where India’s USD 5 trillion economy anchors regional trade. Stable inflows mitigate spillover risks to neighbours like Pakistan and Bangladesh, reliant on remittance corridors and export chains.
Broader Economic Context
India’s equity markets operate in a supportive macro environment. RBI’s October policy held rates steady at 6.5 per cent, signalling growth over inflation control. GDP expanded 7.2 per cent in Q1 FY26, outpacing peers.
Yet, global factors loom. US Federal Reserve rate cut expectations and Middle East tensions influence FPI sentiment. Israel’s recent peace overtures with Hamas eased oil price pressures, aiding import-dependent India.
Trading volumes remained robust, with NSE reporting average daily turnover at INR 1.2 lakh crore in early October. This liquidity supports the Sensex Nifty flat financials offset IT rally equilibrium.
Background
India’s benchmarks have rallied 12 per cent year-to-date, driven by strong corporate earnings and FPI bets on digital economy growth. The IT sector, contributing 8 per cent to GDP, rebounded from a 2024 slowdown in US client spends. Financials, representing 35 per cent of Nifty weightage, benefited from Credit expansion post-RBI easing.
SEBI’s investor protection initiatives, like the October 1 rollout of “Validated UPI Handles” and “SEBI Check,” enhance retail participation. Over 10 crore demat accounts now exist, up 25 per cent from 2024.
What’s Next
Earnings season intensifies post-TCS. Investors monitor Infosys and HDFC Bank results next week for cues on consumption and capex. Potential FPI inflows could amplify India shares muted IT gains if global yields stabilise.
Analysts project Nifty at 25,500 by December, assuming 15 per cent EPS growth. Regulatory support from SEBI may sustain momentum, though geopolitical flares pose risks.
In conclusion, today’s muted open exemplifies how India shares muted IT gains coexist with sector rotations, setting the stage for volatile yet upward trajectories in South Asia’s financial hub.
Published in SouthAsianDesk, October 9th, 2025
Follow SouthAsianDesk on X, Instagram, and Facebook for insights on business and current affairs from across South Asia.
