Indian equities rose for the second consecutive session on Friday, led by gains in information technology and pharmaceutical stocks. The Nifty50 advanced 0.51% to 23,053.10, while the Sensex gained 0.42% to 74,459.53. Domestic markets outperformed most Asian peers as a global unwinding of AI-related trades lifted sentiment towards Indian technology stocks.

The benchmarks snapped a two-month losing streak in October, with the Nifty rising 1.9% and the Sensex gaining 2.7%. The Nifty IT index jumped 17.7% during the month, its strongest monthly performance in more than six years, supported by resilient earnings. Trent, InterGlobe Aviation and Infosys were the top Nifty 50 gainers on Friday.

Broader markets underperformed, with the Nifty MidCap 100 and SmallCap 100 falling 0.93% and 1.85%, respectively. Among sectoral indices, IT led gains, while consumer durables declined the most. Persistent inflation concerns, uncertainty over AI valuations and rising crude oil prices amid renewed US-Iran tensions weighed on broader market sentiment.

The rupee posted its biggest monthly gain in eight months in October, appreciating 88 paise against the dollar to close at 94.9500 per US dollar, compared with 95.8300 at the end of September. The recovery was supported by RBI’s measures to curb dollar demand, suspected central bank intervention, a softer greenback and easing foreign equity selling. The monthly appreciation was significantly higher than the 34-paise gain recorded in June.

Indian government bonds yields rose today as overseas pressures intensified. Traders also placed short bets after absorbing 330 billion rupees worth of bonds and ahead of the weekend. The yield on the benchmark 6.94%, 2036 bond rose to 7.4139% from 7.3902% on Thursday as Brent crude futures climbed towards $118 a barrel.

Top Movers of the Day

Trent surged 5.44% to close at ₹3,017.30, leading the Nifty 50 gainers on the back of stellar quarterly earnings. The company reported a 25% year-on-year jump in Q2 net profit to 4.68 billion rupees and a 22% revenue increase, driven by strategic sourcing and the successful addition of 29 new store locations despite industry-wide inflation.

Infosys shares advanced 3.36% to close at ₹1,185, helping the Nifty IT index become the top-performing sector of the day. The software exporter benefited from a distinct global shift as institutional investors rotated capital away from stretched international AI valuations and back into traditional, reliable Indian IT firms.

NTPC gained 1.85% to end at ₹316.25, acting as a defensive anchor for portfolio managers. With crude oil prices spiking due to renewed US-Iran tensions, investors heavily accumulated stable infrastructure assets to hedge against broader market volatility.

Power Grid Corporation of India rose 1.92% to close at ₹265, moving in tandem with the broader utility sector's upward momentum. Domestic funds favoured the power transmission company for its reliable dividend yields and insulation from the intense selling pressure seen in the mid and small-cap segments.

SBI dropped 1.03% to close at ₹961.85, emerging as the top laggard in the Nifty 50. The stock faced heavy institutional profit-taking as rising bond yields and macroeconomic anxieties prompted funds to temporarily reduce their exposure to major financial institutions.

Mahindra & Mahindra fell 1.72% to settle at ₹2,840.30, dragged down by renewed inflation concerns and ahead of the company’s second quarter results to be announced next week on November 5. The sharp extension of global crude oil price gains directly weighed on rate-sensitive auto counters, sparking an unwinding of long positions.

Shriram Finance declined 2.13% to close at ₹823.15 amid cautious sentiment in the consumer finance space. Market participants aggressively booked profits as concerns over rising stress in gold loan stage 3 assets, which climbed to 3.12% for July-September quarter, up from 2.57% in the previous quarter.

UltraTech Cement slipped 1.16% to close at ₹11,045, pressured by broad-based selling across the building materials sector. Investors turned cautious on the stock due to fears that escalating crude oil prices will directly increase energy and freight costs, potentially compressing near-term margins.

Tata Steel dropped 1.10% to end at ₹167.60, tracking a wider correction in industrial commodities. The stock was weighed down by global inflation fears and a strengthening US dollar, which historically dampen the near-term demand outlook for base metals.

Futures & Options
The Nifty November 2026 futures contract closed at 23,101.40, a premium of 48.30 points to the Nifty 50's cash market close of 23,053.10. The benchmark index rose 116.35 points, or 0.51%, during the session.

The NSE India VIX, which gauges the market's expectation of near-term volatility, rose 2.21% to 15.45. Reliance Industries, Infosys and HDFC Bank were the most-traded individual stock futures contracts in the NSE's futures and options segment. November 2026 F&O contracts will expire on November 23.

Bonds
Indian government bonds reversed earlier gains and ended lower on Friday as rising crude oil prices and fresh short positions weighed on sentiment. The yield on the benchmark 6.94%, 2036 bond rose to 7.4139% from 7.3902% on Thursday. Brent crude futures climbed towards $118 a barrel, prompting traders to add short positions.

Traders remained cautious despite hopes of peace talks between the US and Iran, with continued market volatility limiting aggressive positioning ahead of the weekend. The 10-year US Treasury yield also edged up to 4.93%, but domestic traders were reluctant to build fresh positions based solely on US yield movements amid uncertainty over the weekend outlook.

Forex
The Indian rupee strengthened to 94.95 per US dollar on Friday from 95.26 in the previous session, posting its best monthly gain since February. The currency rose around 1% in October, supported by policy measures aimed at curbing dollar demand and supporting the rupee.

However, elevated oil prices and persistent foreign portfolio outflows continued to weigh on the currency. The rupee had rallied earlier in the year after progress in US-India trade negotiations eased tariff concerns, before renewed conflict in West Asia revived pressure on the unit.

Crypto
The cryptocurrency market capitalisation fell 4.09% over 24 hours to $2.67 trillion on Friday, amid concerns surrounding a Binance security investigation and more than $356 million in futures liquidations. Bitcoin dropped 3.14% to $77,552, taking its market dominance to 58.06%.

Ethereum declined 4% to $2,225, as selling pressure spread across digital assets. Traders remained cautious amid concerns over potential regulatory and security fallout.

US Stock Futures
US stock futures fell on Friday, led by a sharp decline in technology shares after disappointing earnings and outlooks from Amazon and Intel. Nasdaq-100 futures dropped 2%, S&P 500 futures fell 0.9%, while Dow futures were little changed.

Amazon fell 6% in extended trading after its third-quarter earnings and revenue missed expectations. The company also reported negative free cash flow of $42.4 billion and maintained its 2026 capital expenditure forecast of $220 billion. Intel plunged 21% after issuing a weak current-quarter outlook, citing a slowdown in PCs, while Sandisk declined 3% despite beating quarterly estimates and announcing an eight-for-one stock split. The declines came as investors reassessed valuations and spending expectations in the AI trade.

US Treasury Notes
US Treasury yields declined to multiweek lows on Friday as a global selloff in technology and AI stocks triggered safe-haven demand for government debt. The 10-year Treasury yield fell around 5 basis points to 4.93%, while the two-year yield declined to 4.59%, leaving the yield curve spread at about 34 basis points.

The bond rally extended across global markets after the Federal Reserve, European Central Bank and Bank of Japan left interest rates unchanged. Investors remained cautious amid sticky core inflation and ahead of the US midterm elections and the Treasury Department's quarterly refunding statement.

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