Quote on Daily Market Commentary October 6th 2025 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd
Below the Quote on Daily Market Commentary October 6th 2025 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd
Nifty50 ended higher for the third consecutive session crossing the crucial 25k mark, led by gains in banking and IT stocks together with the recent central bank lending reforms boosting investor sentiment. Nifty added 183 points to close at 25,077 (+0.7%), with Nifty Midcap100 and Smallcap100 up by 0.7% and 0.1% respectively. Amongst sectors, the IT index rose over 2% ahead of the Q2FY26 results season, with TCS earnings announcement on October 9th. However, we expect 2Q to be a muted quarter for IT services, with no material improvement over the past quarter. Bank Nifty advanced for fifth straight session to reclaim 56,000-mark on strong Q2 business updates from HDFC and Kotak Mahindra Bank. Hospital stocks gained upto 6% after the government rationalised rates for nearly 2,000 medical procedures under the Central Government Health Services Scheme (CGHS) with effect from October 13th. Meanwhile, Nifty Metal declined more than 1% amid profit booking after a recent rally in the sector. Overall, we expect Q2FY26 to mark a bottoming of earnings growth and a moderation in the trajectory of earnings cuts with Nifty earnings anticipated to grow by 6% YoY. This quarter will also reflect the initial impact of GST 2.0 reforms across select sectors. Corporate commentaries accompanying earnings releases will be key to assessing how the structural policy changes are shaping demand and profitability. The primary market continues to witness heightened activity with big size IPOs including Tata Capital and LG Electronics India lined up in this week. With Nifty sustaining above the 25,000 mark, market sentiment remains constructive. Stock-specific action is expected to dominate in the near term, as the Q2 results season unfolds, with sectors such as banking, IT, capital goods, and consumption likely to remain in focus.
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