Markets Next Week: Jio Platforms IPO, high crude oil prices and Q2 earnings in focus

Indian equity benchmarks extended their gains on Friday, helping the Nifty 50 post a second consecutive weekly advance after an eight-week losing streak — its longest such run in 25 years. The recovery came against a challenging backdrop of elevated crude oil prices and persistent foreign institutional investor (FII) selling. However, a firmer rupee, support from domestic institutional investors (DIIs) and a strong rebound in IT stocks helped the benchmarks gain ground.

The coming week will be crucial in determining whether the market recovery can sustain its momentum. Investors will track the next set of September-quarter (Q2 FY27) earnings, the Jio Platforms initial public offering (IPO), developments in the broader primary market, crude oil prices and key technical levels for the Nifty.

Key factors to watch

Jio Platforms IPO in focus: The much-anticipated Jio Platforms IPO is set to open in the week ahead, with a proposed price band of Rs 1,065–1,119 per share. The issue is expected to raise around Rs 30,200 crore, making it India's largest IPO by issue size.

At the upper end of the price band, Jio Platforms' implied market capitalisation (m-cap) is estimated at around Rs 10.30 lakh crore.

Veteran banker Uday Kotak said the Reliance Industries Ltd (RIL) group would become India's largest conglomerate by listed m-cap following the listing of Jio Platforms.

Speaking at the Jio Platforms IPO press conference, Kotak said, “The RIL group, after Jio's listing, will be India's largest conglomerate, based on listed market cap. This historic IPO from the group comes after nearly two decades. It will be India's largest IPO ever.”

At the upper end of the price band, the Rs 30,213-crore public issue would surpass Hyundai Motor India's Rs 27,870-crore IPO in 2024, becoming India's largest IPO by issue size. So, at the upper end of the price band, the Jio Platforms offering would exceed the previous record by Rs 2,343 crore.

Other major IPOs in India include the National Stock Exchange of India's (NSE's) Rs 22,562-crore issue in 2026, Life Insurance Corporation of India's (LIC's) Rs 20,557-crore offering in 2022, One 97 Communications (Paytm) at Rs 18,300 crore in 2021, and Tata Capital at Rs 15,512 crore in 2025.

More primary market action: The primary market will remain in focus, with two mainboard IPOs, including Jio Platforms, scheduled to open for subscription. The other is the public issue of Paras Healthcare, with both offerings scheduled to open on October 21.

Six mainboard companies are scheduled to list during the holiday-truncated week. The IPOs of Tonbo Imaging India, Zetwerk Manufacturing Business, Bonfiglioli Transmissions and Sahajanand Medical Technologies will close for bidding on Monday, October 19, with all four companies scheduled to list on Friday, October 23.

Shares of HD Fire Protect are scheduled to list on Wednesday, October 21, while Fusion CX is set to make its stock market debut on Thursday, October 22.

FII selling continues, DIIs provide support

Foreign investors remained net sellers of Indian equities during the week, offloading shares worth Rs 15,440 crore. Domestic investors, meanwhile, purchased equities worth Rs 14,792 crore, providing a counterweight to foreign selling.

Sustained domestic institutional buying has helped absorb some of the selling pressure. However, continued FII outflows remain a concern for the market recovery. The direction of foreign flows and the strength of domestic demand will remain important factors for investors to monitor.

IDBI Bank disinvestment

The Union Cabinet has approved the strategic disinvestment of IDBI Bank, with Canada's Fairfax Financial Holdings set to acquire a controlling stake in the lender. The transaction is valued at around Rs 52,878 crore.

Under the deal, Fairfax Financial Holdings will acquire a 60.7% stake in the bank. According to finance ministry officials, the transaction is expected to be completed in the current financial year.

Market veteran Arun Kejriwal, in an interaction with Business Today, said the IDBI Bank disinvestment could be a positive development for the public sector (PSU) banking space.

“IDBI’s disinvestment hints at the possibility of similar moves involving other PSU banks in which the Centre's ownership exceeds 75%. The government could reduce its stake in some of these banks during the remainder of the financial year,” he added.

On the broader market outlook, Kejriwal said, “Despite continued selling by foreign investors, domestic institutions remain in buying mode. Retail investors are participating in new IPOs and making money to some extent. So, it appears that things are falling into place now. The RBI's intervention helped the rupee firm up after its recent slide.”

Rupee's recovery

The Indian rupee extended its gains for the sixth consecutive session against the US dollar on Friday, supported by Reserve Bank of India (RBI) measures to curb spot dollar demand. The domestic currency climbed 2% this week, becoming the best performing currency among the emerging markets (EMs).

The rupee's recovery has been another factor supporting sentiment in domestic equities, although movements in the currency remain important for import costs and inflation.

“With USD/INR moving below the 95.50–95.00 range, attention now turns to 94.80. A sustained break below this level could lead to a further 50–75 paise appreciation, bringing 94 into focus. RBI measures may continue to support the rupee's momentum,” said Amit Pabari, managing director of CR Forex Advisors.

Reverse AI trade puts IT stocks in the spotlight

IT stocks led the domestic market recovery amid renewed interest in the reverse artificial intelligence (AI) trade. The trend follows concerns about AI-related spending by technology companies and the impact of higher-than-expected US inflation on interest-rate expectations.

The US inflation print rose from 3.4% in August to 3.7% in September, according to the US Bureau of Labor Statistics. The increase has fuelled concerns about the possibility of further monetary tightening by the US Federal Reserve. These concerns have weighed on global market sentiment, including in South Korea and Japan.
Against this backdrop, domestic IT stocks, which had underperformed in the recent past, staged a strong rebound.

“On the sectoral front, IT stocks led the gains for the fourth consecutive session, rising around 4% amid sustained earnings-driven momentum,” said Ajit Mishra, SVP (Research) at Religare Broking.

“The recent buoyancy in IT stocks, following quarterly results, has been the primary driver of the market rebound, while other sectors have played a supportive role so far,” Mishra added.

How did the markets perform last week?

The domestic benchmarks ended the week higher, with IT stocks leading the rally. Nifty50 closed at 23,146, gaining 2.8% over the week, while the BSE Sensex pack advanced 3.1% to 74,729. Nifty Bank rose 1.1% to settle at 55,844.

Sectoral gainers and losers

Nifty IT emerged as the top sectoral performer, surging 11.7% during the week. Nifty Media gained 6.1%, followed by Nifty Auto, which advanced 3.7%. Nifty Realty and Nifty India Defence rose 2.7% and 2.3%, respectively.

On the other hand, Nifty IPO declined 2.2%, making it the worst-performing index among the sectors listed. Nifty Healthcare fell 1.1%, while Nifty FMCG, Nifty Pharma and Nifty MNC slipped 0.8%, 0.7% and 0.6%, respectively.

IT stocks lead the rally

IT stocks dominated the market rally. Tech Mahindra led the gains, surging 17%, followed by Tata Consultancy Services (TCS), which advanced 14%. Infosys gained 12.5%, while HCLTech and Wipro rose around 13% each.

Nifty50: Top gainers and losers

Tech Mahindra topped the Nifty50 gainers' list with an 18% rally, followed by TCS and Infosys, which gained 14% and 13.5%, respectively. HCLTech advanced 13.4%, while Bajaj Auto rose 6.5% during the week.

Among the Nifty50 constituents, Nestle India was the biggest loser, declining 5%. Max Healthcare fell 4.3%, while IndiGo dropped 3%. Larsen & Toubro (L&T) declined 2%, and Apollo Hospitals Entertainment fell 1.7%.

NSE 500: Top movers

Among NSE 500 stocks, Tata Elxsi gained 23%, followed by Gallantt Ispat, up 21%. Tech Mahindra advanced 18%, while HBL Engineering and KPIT Technologies gained 16% each.

On the downside, Sterlite Technologies and YES Bank fell 15% each. HDB Financial Services declined 13%, while Ather Energy and RR Kabel dropped 12% each.

Nifty's next hurdles

Nifty's ability to sustain its recent gains and move above immediate resistance levels will remain important for the market outlook.

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said, “Nifty witnessed sharp back-to-back gains in the last couple of sessions and closed the day higher by 148 points on Friday. After a decisive breakout of immediate hurdle around 22,800 level recently, the index is currently placed at the edge of sharp breakout of another hurdle around 23,100-23,200 levels as per change in polarity.”

Nifty formed a long bullish candle with a long lower shadow on the weekly chart following nearly two months of decisive downtrend. According to the technical commentary, the pattern signals the formation of a bullish 'Morning Star'-type candle on weekly charts.

Shetti added, “Further upside from here could pull Nifty towards 23,500-23,600 levels in quick period of time. Any weakness is likely to find support around 22,800 level.”

Elevated crude oil prices remain a risk

Crude oil prices remained elevated during the week, hovering around $110 per barrel at the last check. Higher oil prices can increase India's import bill and add to inflationary pressures.

Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services Ltd (MOFSL), said, “Nifty is expected to consolidate with a gradual recovery, although intermittent volatility may persist in broader markets. Brent crude remained high, keeping geopolitical and inflation risks in focus.”

Q2 FY27 earnings calendar: Key results to watch

Investors will track quarterly results from several major companies during the coming week. The schedule below is based on the dates provided.

October 19: Bajaj Finance; UltraTech Cement; Hindustan Zinc; Union Bank of India; Waaree Renewable Technologies

October 21: Eternal; Adani Green Energy; Indian Hotels; Vishal Mega Mart; M&M Financial Services

October 22: Adani Energy Solutions; HPCL; Havells India; Swiggy; Adani Total Gas; Colgate-Palmolive (India); Chennai Petroleum Corporation

October 23: Infosys; Adani Power; JSW Steel; Tata Motors; BPCL; Dr Reddy's Laboratories; Coforge; IndusInd Bank

October 24: Kotak Mahindra Bank; AU Small Finance Bank; IDFC First Bank; Castrol India; Apollo Micro Systems; Lumax Auto Technologies

Indian stock markets will remain closed on Tuesday, October 20, 2026, for Dussehra.