Market Cues Next Week: Q2 Earnings Season, India-EU FTA Talks, India Services PMI Among Other Factors To Guide D-Street Sentiment

Domestic equity markets ended the truncated trading week on a cautiously positive note, rebounding after midweek volatility. Investor sentiment improved after the Reserve Bank of India's (RBI) decision to keep the repo rate unchanged at its October policy review.

As a result, the benchmark indices closed with nearly 1 per cent gains. During the week, the Nifty 50 gained 239.55 points, or 0.97 per cent to settle at 24,894.25. Similarly, Sensex climbed 780.71 points, or 0.97 per cent.

The RBI's six-member Monetary Policy Committee (MPC), during its meeting held between September 29 to October 1, unanimously decided to hold the repo rate at 5.50 per cent and kept the stance as neutral for the second consecutive meeting. This followed three consecutive cuts in 2025 that brought the rate down from 6.5 per cent by 100 basis points.

The central bank revised the FY26 gross domestic product (GDP) growth estimates upward to 6.8 per cent from 6.5 per cent earlier, and also lowered its inflation forecast for the fiscal year to 2.6 per cent from 3.1 per cent earlier. This also added a boost to investor sentiment.

Market Cues To Watch Next Week

A host of upcoming developments is set to guide investor sentiment on the Dalal Street next week, from October 6 to 10.

India-EU FTA Talks

The 14th round of India-EU Free Trade Agreement (FTA) negotiations is scheduled to take place in Brussels from October 6 to October 10, 2025. EU Ambassador Hervé Delphin during a recent address at the Federation of European Business in India (FEBI) Annual General Meeting, said that the European Union (EU) is India's top trading partner.

According to the FEBI Business Sentiment Survey 2025, trade in goods between the two entities reached €120 billion, surpassing both the United States and China. When services are included, bilateral trade has touched €180 billion.

Tata Capital IPO, LG Electronics IPO Opens For Subscription

The year’s largest public issues are set to hit the market next week. Tata Capital’s Rs 15,512-crore initial public offering (IPO) will open on October 6 and will close on October 8. The LG Electronics Rs 11,607-crore IPO will remain open from October 7 to 9. Large IPOs like these often suck liquidity from the stock market, which can weigh on broader trading.

Q2FY26 Earnings Season Begins

The earnings season for the quarter ended September 30, 2025 is set to begin next week. Tata Consultancy Services (TCS) is the first Sensex and Nifty 50 constituent that is scheduled to report its Q2FY26 quarterly numbers on October 9.

HSBC India Services PMI, Composite PMI Data

S&P Global is set to release HSBC India Services PMI and Composite PMI data for September on October 6. Previous month's data showed that Services PMI Business Activity Index rose to 62.9 in August, up from 60.5 in July, the steepest growth rate since mid-2010, and the Composite PMI Output Index rose to 63.2 in August, up from 61.1 in July, the sharpest pace of expansion in over 17 years.

US Federal Reserve FOMC Meeting Minutes

The minutes from the US Federal Reserve's most recent Federal Open Market Committee (FOMC) meeting, held on September 16-17, 2025, are scheduled for release on October 8, 2025. The minutes of regularly scheduled meetings are released three weeks after the date of the policy decision

The minutes provide a detailed look at the Fed’s policy discussions and economic outlook, providing investors and analysts with valuable insights.