DayStarter

Market snapshot

Indian equities opened higher on 9 July. The Nifty 50 began 47 points above the previous close at 23,929. It traded mostly between 24,040 and 24,060 during the morning. Selling after 3 PM pushed it to an intraday low near 23,925, but it recovered in the final minutes and closed at 23,962.80. The broader market was stronger than the main indices, with mid-cap, small-cap and micro-cap indices outperforming.

Equities and sectors

Indian equities opened higher on 9 July. The Nifty 50 began 47 points above the previous close at 23,929. It traded mostly between 24,040 and 24,060 during the morning. Selling after 3 PM pushed it to an intraday low near 23,925, but it recovered in the final minutes and closed at 23,962.80.

The broader market was stronger than the main indices. The Nifty 500 closed at 23,081.15, up 0.76%, while the Nifty 100 rose 0.43% to 24,989.25. The BSE 150 MidCap gained 1.41% to 16,766.53, and the BSE 250 SmallCap rose 1.69% to 7,068.66.

Winners and losers: F&O stocks

KALYANKJIL led the gainers with a 17.53% rise. SWIGGY rose 7.80%, LODHA rose 7.61% and KAYNES rose 7.36%. On the losing side, DRREDDY fell 5.77%, SOLARINDS fell 3.26% and MAZDOCK fell 3.18%.

Commodities, currency, and bonds

The two sources reported slightly different USD/INR figures. Zerodha Markets showed 95.57, down 0.16%. The Mint front-page ticker showed the rupee at 95.47 per dollar, down 0.01. The figures are presented separately and have not been reconciled. India’s 10-year government bond yield was 6.75, down 0.27%. The US 10-year Treasury yield was 4.56, up 0.88%.

Crude oil was also reported using different contracts and reference prices. The Mint front-page ticker placed oil at $78.58, down $0.71. Mint’s SBI Funds report cited the September Brent contract at $78.70 on 9 July, compared with $72.72 on 7 July. The Zerodha report said crude was near $73.5 per barrel after rising 4.4% in the previous session.

Institutional flows

Five-day foreign institutional investor and domestic institutional investor flows were included in an image-embedded NSE table in the Zerodha report. The figures were not machine-readable. Verified provisional flows are available from NSE India.

Macro view

The macro section covered growth forecasts, monsoon progress, infrastructure and price indicators, the PM Internship Scheme, energy and transport, and new customs and RBI measures. The main thread was that India remains the fastest-growing major economy even as two institutions trimmed its FY27 growth outlook.

Growth forecasts

Two institutions lowered India’s FY27 growth forecast, but their estimates differ because they use separate models and assumptions. The Asian Development Bank cut its FY27 GDP growth forecast to 6.6% from 6.9% in April and kept FY28 at 7.3%. The IMF lowered its FY27 forecast to 6.4% from 6.5% and raised FY28 to 6.7% from 6.5%. Based on the IMF figures cited by Mint, India remains the fastest-growing major economy, ahead of Indonesia at 5%, Malaysia at 4.7%, and China at 4.6%.

Monsoon and kharif sowing

Farmers had sown 35.08 million hectares as of 3 July, 20.7% less than 44.28 million hectares a year earlier. This covered 31.8% of the normal kharif area, compared with 40.4% at the same point last year. June rainfall ended nearly 40% below normal, and the India Meteorological Department forecast below-normal rainfall for July. The south-west monsoon reached the entire country on Wednesday, one day later than the normal completion date.

Infrastructure, inflation, and investment indicators

Railway electrification: India had electrified 70,002 route kilometres of its 70,271-RKM broad-gauge network by 31 May 2026. Coverage reached 99.6%, with 269 RKM left. The government allocated ₹5,000 crore for electrification works in 2026-27.

Inflation risk: S&P Global Ratings projected India’s FY27 inflation at 5.1% if the south-west monsoon underperforms.

Rural employment: The Centre released the first instalment of ₹25,863 crore to states under the Viksit Bharat-Guarantee for Rozgar and Aajeevika Mission (Gramin), which replaced MGNREGA from 1 July.

Foreign direct investment: India ranked 11th among the largest FDI recipients in 2025. Inflows rose 44% to $38.89 billion. India ranked 13th in 2024.

PM Internship Scheme

The Centre’s revised FY26-27 scorecard targets 750 participating companies and 73,333 internship opportunities. The pilot generated more than 132,000 offers, but only about 16,000 candidates joined. The FY27 budget allocation is ₹4,788.45 crore, 55.8% lower than a year earlier. The scheme provides a stipend of ₹9,000 per month and a one-time joining grant of ₹6,000.

Energy and transport

Clean energy: Non-fossil sources supplied 50.02% of India’s electricity at 11:46 AM on 6 July, when national demand was 221.5 GW.

Domestic air traffic: Passenger traffic rose 9.5% year on year to 15.4 million in May.

Energy storage: India has commissioned 7.5 GWh of storage, while projects totalling more than 140 GW are at different stages of implementation.

Customs duty and RBI surveys

The government waived basic customs duty on inputs used in display assemblies, lithium-ion cells, and inductor coil modules until 31 March 2029. The Zerodha report separately described the waiver as covering display-module and wireless-charging components. The RBI launched three surveys on 9 July. These included the Inflation Expectations Survey of Households and the Rural Consumer Confidence Survey. The next monetary policy meeting is scheduled for 3-5 August 2026.

Mint; ADB; IMF; IMD; S&P Global Ratings

Corporate action and earnings

The corporate section mixed a large IPO filing, deal activity, pharma and auto updates, and new savings and deposit rules. TCS reported its June-quarter results on 9 July; a full breakdown appears in the feature section of this briefing.

Domestic developments

SBI Funds IPO: SBI Funds Management filed its red herring prospectus for an IPO of up to ₹11,693 crore. The price band is ₹545-574, and the issue opens on 14 July. At the upper end, the company would have a market capitalisation of around ₹1.17 trillion. The IPO is entirely an offer for sale. SBI may sell up to 128.3 million shares, equal to 6.3%, while Amundi India may sell up to 75.6 million shares, equal to 3.7%. Mint described it as the biggest IPO of 2026 so far. In FY26, revenue rose 22% to ₹4,390 crore and profit rose 21% to ₹3,067 crore. Mutual fund average assets under management were ₹12.48 trillion in March, giving the company a 15.31% market share.

Dr Reddy’s: The company reported delays in generic semaglutide supplies because some batches were outside specifications and there was an active pharmaceutical ingredient issue. Shipments are expected to resume by November. Expected full-year volumes were cut to 6-7 million pens from 12 million. The stock closed 5.77% lower at ₹1,271.20 on the NSE.

Peak XV and K12 Techno: Vitruvian Partners invested ₹1,159 crore for a stake of nearly 16%. The deal values K12 Techno at ₹7,100-7,250 crore after the investment, compared with around ₹4,721.2 crore earlier. Mint reported that Peak XV earned nearly 12 times its investment on the partial exit.

Vedanta: The shares rose more than 4% after the Delhi High Court rejected the Centre’s objections to enforcing a $99 million foreign arbitral award in favour of Vedanta and Ravva Oil.

Piramal Pharma: The shares rose more than 2% after the USFDA closed its inspection of the Sellersville facility with an Establishment Inspection Report.

Mahindra & Mahindra: Price increases across the SUV and commercial-vehicle portfolios take effect from 10 July. SUV prices will rise by an average of 2.7%, while commercial-vehicle prices will rise by around 2%.

Fundamentum Fund III: The Nilekani-Aggarwal firm launched its third fund with a target of ₹2,200 crore, or $230 million, plus a ₹400 crore green-shoe option. Nandan Nilekani is the anchor lead limited partner.

Other moves: Farmley, the dry-fruit and nut brand, is in talks to raise $50-75 million and has appointed KPMG as its adviser. The Gujarat Data Centre Policy 2026-29 targets ₹6 lakh crore of investment and 7.5 GW of data-centre capacity. Under the EPF Scheme 2026, contributions above ₹1,800 per month remain voluntary, full provident-fund withdrawal now requires a 12-month waiting period, claims must be settled within 20 days, and online nominations replace Form 2. The RBI’s FCNR(B) swap window remains open until 30 September 2026, and several banks are offering 6-7% on new FCNR deposits with maturities of three to five years.

Mint; Zerodha AfterMarket Report

Upcoming economic releases

These are scheduled releases, not confirmed outcomes.

Earnings calendar

Global pulse

Global markets were mixed. The Shanghai Composite and Nikkei 225 rose, while the Dow Jones, Hang Seng and FTSE 100 fell. The US-Iran conflict, Gulf shipping disruption and a fresh move higher in oil remained the central themes.

US-Iran conflict and oil

US Central Command said around 90 targets were struck overnight, after 80 targets the previous day. Iran targeted US bases in Bahrain, Kuwait, and Qatar, based on the Iranian Students’ News Agency report cited by Mint. President Trump said, “I think it’s over,” when speaking about the ceasefire. Mint reported that oil prices rose more than 6% after his comments. Cargo bookings across the Persian Gulf stopped, and shipping lines placed new bookings on hold. The report cited the Federation of Freight Forwarders’ Associations in India.

Rates, inflation, and climate

Japan: The 10-year government bond yield reached a 30-year high of 2.90%. This was its ninth straight session of gains.

China: Producer prices rose 4.1% year on year in June, the highest rate since July 2022.

Western Europe: The region recorded its hottest June on record. Globally, June was the second-warmest month on record.

Companies, technology, and market leadership

PepsiCo: Second-quarter revenue was $24.18 billion, above the $23.97 billion estimate. Revenue rose 6.4% year on year, while organic revenue grew 2.4%. India helped growth in convenient foods, and Asia Pacific Foods net revenue rose 12%.

Magnificent Seven: The Bloomberg Magnificent 7 index fell 1.9% in the first half of 2026, while the S&P 500 gained 9.3%. The Philadelphia Semiconductor Index is up 78% this year.

Bank of America and OpenAI: Bank of America extended a $520 million credit line to OpenAI.

China and AI models: China is considering tighter controls on AI models used by US companies.

Zerodha; Mint

Management commentary

Verbatim comments from named leaders and policymakers.

K. Krithivasan, Chief Executive Officer and Managing Director, TCS, on the demand environment:

Nilesh Shah, Managing Director, Kotak Mahindra AMC, on the market outlook:

V. Anantha Nageswaran, Chief Economic Adviser, quote of the day, on artificial intelligence:

Mint; Zerodha AfterMarket Report

Feature: Reading TCS Q1 FY27 as an earnings-quality case study

TCS reported results for the quarter ended 30 June 2026. The figures below show how a quarterly report can be read beyond the headline profit number. The analysis follows the frameworks cited in the sourcing note and applies them to TCS’s reported data.

Reported results

Revenue was $7,624 million, flat quarter on quarter and up 2.7% year on year in US dollars, and up 0.4% quarter on quarter in constant currency. Rupee revenue was ₹72,275 crore, up 13.9% year on year and 2.2% quarter on quarter. Net profit was ₹13,349 crore. Business Standard reported growth of 4.6% from ₹12,760 crore, while Business Today reported growth of 5%. Excluding exceptional items, Business Today reported net income of ₹13,849 crore. TCS recorded a ₹668 crore charge for legal settlements. Operating margin was 24.0%, and net margin was 19.2%.

Total contract value was $9.5 billion, compared with $9.4 billion a year earlier and $8.3 billion in Q1 FY25. Headcount was 593,798. TCS added 9,279 employees during the quarter, but headcount was 19,271 lower than a year earlier. Last-twelve-month attrition in IT services was 13.6%. The annualised AI revenue run rate reached $2.6 billion, up 13.6% quarter on quarter. TCS announced an $800 million deal with SKF and partnerships with ServiceNow, Anthropic, and Mistral. Net cash from operations was $1,310 million, equal to 93% of net income. TCS declared an interim dividend of ₹12 per share. The record date is 15 July, and payment is scheduled for 31 July 2026.

Business Standard reported that revenue beat the Bloomberg estimate of ₹71,862 crore, while profit was slightly below the ₹13,394 crore estimate. Mint reported that analysts had expected dollar revenue of $7.52 billion. The stock ended Thursday 0.52% lower at ₹2,047.75. Mint noted that it had reached a six-year low in the previous week and was down 36% since the start of the year.

1. Compare actual results with expectations

The first step is to compare reported results with market expectations. AAII’s five-step method treats a result within 2% above or below consensus as broadly in line. A result more than 2% above consensus is a positive surprise, while one more than 2% below is a negative surprise. On this basis, Business Standard reported that TCS beat the revenue estimate but slightly missed the profit estimate.

2. Compare growth on consistent bases

Growth should be read year on year, quarter on quarter, and in constant currency. Year-on-year comparisons reduce seasonal distortion, while quarter-on-quarter figures show the latest direction. Constant-currency growth removes the effect of exchange-rate movements. TCS reported 0.4% quarter-on-quarter growth in constant currency even though reported US-dollar revenue was flat. Rupee revenue rose 13.9% year on year, compared with 2.7% growth in US dollars. The difference shows how currency movements can change reported growth for a multinational company.

3. Separate recurring and non-recurring items

Recurring earnings are usually more useful for forecasting than one-time gains or charges. CFA Institute notes that non-recurring items can reduce earnings quality because they make current profit less representative of future performance. TCS’s ₹668 crore legal-settlement charge was non-recurring. Business Today’s ex-exceptional net income of ₹13,849 crore is therefore closer to a normalised profit figure.

4. Examine margins and their drivers

Margins show how much revenue remains after costs. Higher margins can reflect better efficiency or pricing power, while lower margins can point to rising costs or stronger competition. TCS reported an operating margin of 24.0%. Mint and Zerodha said the sequential decline was linked to wage increases. Chief Human Resources Officer Sudeep Kunnumal said the company completed annual salary increments for all employees during the quarter.

5. Cross-check profit with cash flow

Accounting profit does not always convert into cash at the same rate. Differences between net income and operating cash flow can reveal changes in working capital or the use of accounting estimates. TCS reported operating cash flow of $1,310 million, equal to 93% of net income. This provides a direct check on how much of reported profit became cash during the quarter.

6. Assess forward indicators

Past results describe what has already happened. Order books, guidance, and management commentary provide information about future demand and risk. TCS reported a total contract value of $9.5 billion. K. Krithivasan highlighted a major AI-led transformation deal with SKF. He also told Mint that he expected activity to improve in the second quarter because clients had a large backlog of technology work to complete.

7. Review the revenue mix

Segment and geographic data show where growth is coming from and whether revenue is concentrated. In constant currency, banking, financial services, and insurance revenue grew 2.4% and represented 32.1% of total revenue, making it TCS’s largest industry segment. Consumer revenue fell 1.2%, the only segment to decline. North America grew 2.0% and contributed 48.3% of revenue, while India grew 22.9%.

The overall picture

The overall picture is mixed. Revenue was slightly better than expected, profit was marginally below estimates, and cash conversion remained high. The legal-settlement charge reduced reported profit but was non-recurring. Margins faced pressure from wage increases. The order book and AI revenue provided forward-looking evidence of demand, while the revenue mix showed continued concentration in BFSI and North America. This is an educational application of the cited analytical frameworks and does not express a view on TCS valuation or its share price.

TCS Q1 FY27 press release; Business Standard; Business Today; Staffing Industry Analysts; CFA Institute; AAII; Mint; Zerodha

Day at a glance

Closing

Primary sources: Mint, Mumbai edition, 10 July 2026; Zerodha AfterMarket Report, 9 July 2026 close. This briefing is a factual news aggregation and is not investment advice.