Market participants will track global developments, foreign institutional investor (FII) flows and further corporate earnings announcements for cues on market direction.

IT, media and metal shares jumped while consumer durables, oil & gas and realty shares declined.

As per provisional closing data, the S&P BSE Sensex jumped 413.66 points or 0.56% to 74,729.27. The Nifty 50 index added 148.80 points or 0.65% to 23,146.15. Over the past two consecutive trading sessions, the Sensex and Nifty rallied 2.68% and 2.31%, respectively.

In the broader market, the Nifty MidCap 150 index shed 0.09%, while the Nifty SmallCap 250 index rose 0.06%.

Market breadth remained positive. On the NSE, 2,131 shares advanced, while 1,422 declined and 116 remained unchanged.

Economy:

India's balance of payments recorded a surplus of $45.4 billion in August 2026, compared with a deficit of $5.6 billion a year earlier, according to data released by the Reserve Bank of India (RBI) on 15 October 2026. The current account deficit narrowed to $5.2 billion from $6.1 billion in August 2025. The merchandise trade deficit declined to $26.6 billion from $27.6 billion a year earlier, as merchandise exports rose to $44.7 billion from $35.1 billion, while imports increased to $71.3 billion from $62.7 billion. Net services receipts also rose to $16.5 billion from $15.6 billion a year earlier.

Meanwhile, the government has raised windfall tax on exports of petrol, and reduced levies on diesel, according to a government notification issued late on Thursday night. The tax on petrol export was hiked to Rs 2.5 per litre from Rs 0.5 per litre, according to the notification. On the other hand, duty on diesel exports was slashed to Rs 8.5 per litre from Rs 16 per litre, effective October 16, the order said.

IPO Update:

Fusion CX received bids for 5,75,78,235 shares as against 1,40,40,000 shares on offer, according to stock exchange data at 15:30 IST on 16 October 2026. The issue was subscribed 4.10 times.

The issue opened for bidding on 14 October 2026 and will close on 16 October 2026. The price band of the IPO is fixed between Rs 275 and 289 per share. An investor can bid for a minimum of 51 equity shares and multiples thereof.

Tonbo Imaging India received bids for 6,14,29,452 shares as against 85,26,033 shares on offer, according to stock exchange data at 15:30 IST on 16 October 2026. The issue was subscribed 7.20 times.

The issue opened for bidding on 15 October 2026 and will close on 19 October 2026. The price band of the IPO is fixed between Rs 665 and 700 per share. An investor can bid for a minimum of 21 equity shares and multiples thereof.

Zetwerk Manufacturing Business received bids for 5,54,18,022 shares as against 18,50,66,845 shares on offer, according to stock exchange data at 15:30 IST on 16 October 2026. The issue was subscribed 0.30 times.

The issue opened for bidding on 15 October 2026 and will close on 19 October 2026. The price band of the IPO is fixed between Rs 143 and 151 per share. An investor can bid for a minimum of 99 equity shares and multiples thereof.

Sahajanand Medical Technologies received bids for 69,16,206 shares as against 97,50,482 shares on offer, according to stock exchange data at 15:30 IST on 16 October 2026. The issue was subscribed 0.71 times.

The issue opened for bidding on 15 October 2026 and will close on 19 October 2026. The price band of the IPO is fixed between Rs 327 and 344 per share. An investor can bid for a minimum of 43 equity shares and multiples thereof.

Bonfiglioli Transmissions received bids for 2,68,86,950 shares as against 3,02,82,330 shares on offer, according to stock exchange data at 15:30 IST on 16 October 2026. The issue was subscribed 0.89 times.

The issue opened for bidding on 15 October 2026 and will close on 19 October 2026. The price band of the IPO is fixed between Rs 558 and 586 per share. An investor can bid for a minimum of 25 equity shares and multiples thereof.

Buzzing Index:

The Nifty IT index jumped 3.92% to 31,924.10. The index surged 12.61% in the straight four trading sessions.

Tech Mahindra (up 7.97%), Wipro (up 6.12%), Tata Consultancy Services (up 5%), Infosys (up 4.8%), LTM (up 4.34%), Mphasis (up 1.72%), Oracle Financial Services Software (up 1.22%), Coforge (up 0.81%), HCL Technologies (up 0.81%).

Tech Mahindra zoomed 7.97% after the company reported a 32.7% rise in consolidated net profit to Rs 1,585.6 crore in Q2 FY27 as compared with Rs 1,194.5 crore in Q2 FY26. Revenue from operations increased 15.6% to Rs 16,180.2 crore in Q2 FY27 as compared with Rs 13,994.9 crore in Q2 FY26.

Wipro jumped 6.12% consolidated net profit declined 1.9% YoY to Rs 3,200 crore in Q2 FY27 from Rs 3,262.4 crore in Q2 FY26. Gross revenue rose 9.1% YoY to Rs 24,752.7 crore from Rs 22,697.3 crore.

Stocks in Spotlight:

Cyient DLM fell 12.62% despite reporting a 26.5% YoY and 5.16% QoQ increase in revenue to Rs 393.09 crore in Q2 FY27. The company's normalized net profit increased 25.8% YoY to Rs 15.82 crore from Rs 12.6 crore in Q2 FY26. Reported profit after tax rose 5.79% YoY and 108.78% QoQ to Rs 34.01 crore from Rs 32.15 crore and Rs 16.29 crore, respectively. Reported PAT included a one-off gain of Rs 18.2 crore from an earnout reversal.

PC Jeweller surged 11.97% after investor Aditya Kumar Halwasiya acquired 5.1 crore shares in the jewellery retailer through a bulk deal on the NSE. According to NSE bulk deal data on Thursday (15 October 2026), Halwasiya purchased the shares at Rs 14.43 apiece. The transaction represented a 0.52% stake in the company. Halwasiya is the promoter of Cupid, in which he holds a 33.29% stake. His investment portfolio also includes a 2.03% stake in Tourism Finance Corporation of India.

Global market:

Most European equities advanced on Friday as sovereign borrowing costs and treasury yields eased.

Iran's army commander-in-chief, Amir Hatami, said the Strait of Hormuz would remain closed until Iran's demands were met, adding that shipping traffic through the waterway was very limited, according to Iran's Mehr news agency. The US Central Command, however, said the United States and its regional partners controlled the strait and that commercial vessels continued to transit despite what it described as aggression by Iran's Islamic Revolutionary Guard Corps (IRGC).

US President Donald Trump said in a Newsmax interview on Thursday that he would not use nuclear weapons against Iran and did not see a need to deploy US ground troops. Meanwhile, US Treasury Secretary Scott Bessent said Washington would continue its financial pressure on Tehran until its financial resources were exhausted. The US Treasury announced sanctions targeting 16 individuals and 10 entities over alleged links to Iranian financial networks.

Most Asian indices ended higher on Friday as investors assessed Wall Street's rebound and weighed persistent inflation concerns against the recent technology sell-off.

Indonesia was a notable exception, with the Jakarta Composite Index plunged more than 11%, its steepest one-day decline since 1998, after global index provider MSCI proposed downgrading the country's market from emerging-market to standalone status. MSCI cited concerns over market transparency, concentrated shareholdings and investability, raising fears of potential foreign capital outflows.

US equities closed higher on Thursday. The Dow Jones Industrial Average climbed 1.08%, while the S&P 500 advanced 0.33% and the Nasdaq Composite gained 0.08%. Treasury yields eased, supporting the broader market despite continued pressure on technology and semiconductor stocks.

The rebound followed a technology-led sell-off earlier in the week, as hotter-than-expected US consumer inflation revived concerns over further Federal Reserve interest rate increases. Investors also questioned whether strong demand for artificial intelligence would justify substantial spending on data centres, semiconductors and cloud infrastructure, particularly amid higher borrowing costs and intensifying competition in the chip industry.

Inflation remained a key concern after US producer prices rose more than expected in September. The Producer Price Index (PPI) for final demand increased 1.3% month on month, its largest monthly gain since March 2022, while annual producer inflation accelerated to 6.3% from 5.6% in August. Energy prices were a major contributor, with final-demand energy prices rising 10.8% during the month. The data followed a stronger-than-expected consumer inflation report released on Wednesday, adding to uncertainty over the Federal Reserve's policy outlook.