India’s capital markets are being propelled by growing retail participation, rapid adoption of digital and AI-powered platforms, supportive government reforms, robust growth in MF AUM, and the nation’s strong economic expansion driven by a youthful population.
The IT sector stands as a key pillar of India’s economic growth, fueled by the increasing adoption of artificial intelligence, the growing demand for cybersecurity, cloud modernisation initiatives, and the rapid expansion of Global Capability Centres (GCCs). We also analysed the market’s performance on Monday & Tuesday to understand what may lie ahead for the stock indices in the coming days.
Two stock recommendations from Trade Brains Portal for 23 October
BSE Ltd (CMP: ₹2,481)
- Target: ₹3,200 in 12 Months
- Stop loss: ₹2,122
- Why it’s recommended: Founded in 1875, the Bombay Stock Exchange (BSE) stands as Asia’s oldest and one of India’s most prominent financial institutions. It offers a comprehensive marketplace for a wide range of financial instruments, including equities, derivatives, mutual funds, and debt securities. Recognized as the world’s fastest stock exchange with a trading speed of only 6 microseconds, the BSE remains a cornerstone of India’s capital markets. As of the first quarter of FY26, it hosted 5,452 listed companies with a total market capitalisation of USD 5.25 trillion and a base of over 219 million investors. The exchange also operates StAR MF Plus, a state-of-the-art platform designed for financial advisors and distributors, providing access to over 14,320 mutual fund schemes. By Q1 FY26, BSE StAR MF had extended its presence to 721 cities, supported by 80,977 distributors and 244.12 million registered investors.
During Q1 FY26, the company reported a total income of ₹1,044.45 crore, reflecting a 56% year-on-year increase and marking its strongest quarterly performance in its 150-year history. The remarkable revenue growth was fueled by higher transaction-linked income, other operating income, and investment income. Operating EBITDA more than doubled to ₹626 crore from ₹282 crore a year earlier, with margins expanding impressively to 65% from 47%. Profit after tax climbed 104% YoY to ₹538.17 crore. Transaction charges encompassing earnings from equity cash, equity derivatives, mutual funds, and clearing operations surged 84% YoY to ₹737 crore from ₹400 crore. Additionally, other operating income rose 57% to ₹70 crore from ₹45 crore, while investment income advanced 28% to ₹79 crore from ₹61 crore.
In the quarter, BSE recorded 21 new equity listings across its main and SME boards, raising a total of ₹14,237 crore. By the end of Q1 FY26, the exchange had around 528 members, 79 lakh registered unique client codes (UCCs), and 330 foreign portfolio investors (FPIs). Transactions on the BSE StAR MF platform rose 30% year-on-year to 18.3 crore, up from 14.1 crore in the same period last year. The exchange also crossed the milestone of 600 SME listings, with July 2025 marking a record month that saw 18 new listings collectively mobilizing ₹880 crore. During Q1 FY26, BSE continued to be the preferred platform for Indian companies to raise capital, enabling total fund mobilization of ₹7.59 lakh crore through various financial instruments, including equities, bonds, debt securities, commercial papers, and mutual funds.
- Risk Factor: The company’s performance is largely influenced by the trading volume and value on its exchange, the number of transactions processed through its mutual fund distribution platform, the level of active investor participation, the flow of new listings, and the capital raised from these issuances. Operating in a highly competitive global marketplace, BSE contends with numerous players across areas such as listings, clearing, trading, settlements, and financial product distribution. It also faces challenges arising from rapid technological innovation and evolving economic conditions, creating a dynamic and demanding operating environment.
Persistent Systems (CMP: ₹5,797)
- Target: ₹6,700 in 12 Months
- Stop loss: ₹5,345
- Why it’s recommended: Established in 1990, Persistent Systems Ltd. is a leading global player in software and technology services. The company serves diverse sectors such as Banking, Financial Services, and Insurance (BFSI); Healthcare and Life Sciences (HLS); Software and Hi-Tech, along with telecom and media. Its wide range of services includes digital strategy and design, software product engineering, customer experience transformation, cloud and infrastructure management, automation, enterprise security, systems integration, application development and maintenance, and data analytics. As of Q2 FY26, Persistent employed 26,224 professionals across 18 countries, maintaining a trailing twelve-month attrition rate of 13.8%.
In Q2 FY26, the company recorded a 23.6% YoY revenue growth, rising from ₹2,897.15 crore in Q2 FY25 to ₹3,580.72 crore, marking its 22nd straight quarter of revenue expansion. Sequentially, revenue grew 4.2%, with YoY growth at 17.6%, while operating margins improved to 16.3%. PAT increased 45.1% YoY to ₹471.47 crore, and EBIT rose 43.7% YoY to ₹583.74 crore.
The total contract value (TCV) for the trailing twelve months stood at USD 609.2 million, and the annual contract value (ACV) at USD 447.9 million. Efficiency improvements were also evident, with ROCE strengthening to 45.5% from 38.1% a year earlier and ROE increasing to 26.2% from 24.7%. Days’ sales outstanding (DSO) improved from 92 days in Q2 FY25 to 75 days in Q2 FY26, reflecting stronger receivables management.
Looking ahead, Persistent aims to expand its operating margins by 100 basis points in FY26 and another 100 basis points in FY27, targeting an overall improvement of 200-300 basis points over the next two to three years. During Q2 FY26, it achieved major project wins, including a 360° collaboration and go-to-market partnership to build and scale AI infrastructure platforms using SASVA for a global infrastructure leader. The company also advanced digital transformation initiatives, such as modernizing tax and accounting software for a global fintech platform and overhauling the digital presence of one of the world’s largest healthcare organizations to enhance customer engagement and drive growth.
- Risk Factor: Persistent Systems operates at a relatively moderate scale compared to larger Indian IT companies, which constrains its pricing flexibility and profit margins. With over 80% of its revenue coming from the US, the company remains highly exposed to region-specific risks, such as government-imposed tariffs. This strong dependence on the US market also increases its vulnerability to foreign exchange fluctuations arising from international operations. Consequently, Persistent’s financial performance and growth potential are sensitive to geopolitical and economic developments in its key market.
Market Recap
On Monday, the Nifty 50 opened on a firm note at 25,824.6, gaining 114.75 points over Friday’s close of 25,709.85. The index moved higher to register an intraday high of 25,926.2, crossing the 25,900 mark. The BSE Sensex also opened strong at 84,269.3, up 317.11 points from its previous close of 83,952, and went on to touch an intraday high of 84,656.56, breaching the 84,600 level. The Bank Nifty Index ended in positive territory as well, hitting a 52-week high of 58,261.55, surpassing the 58,250 mark.
During Tuesday’s Muhurat session, which took place from 1.45 pm to 2.45 pm, broader markets continued their upward trajectory. The Nifty 50 opened at 25,901, a rise of 57.85 points from Monday’s close of 25,843.15, and hit a 52-week high of 25,934.35 before closing slightly higher at 25,868.6, up 25.45 points, or 0.10%.
The BSE Sensex followed a similar trend, opening at 84,484.67, up 121.3 points from Monday’s close of 84,363.37, and settled at 84,426.34, up 62.97 points, or 0.07%. The Sensex also recorded a 52-week high of 84,665.44, moving past the 84,650 level. Meanwhile, the Bank Nifty Index had a muted session, ending slightly lower at 58,007.20, down 26 points or -0.04%.
All three indices closed above their 20, 50, 100, and 200-day EMAs on the daily chart, indicating sustained bullish momentum. The Relative Strength Index (RSI) for the Nifty 50 was at 72.26, and for the BSE Sensex at 72.18, both entering the overbought zone (above 70). The Bank Nifty’s RSI stood at 76.17, placing it firmly in the overbought territory.
On the sectoral front, the Nifty Media Index emerged as the top gainer on Tuesday, rising 0.56%, or 8.65 points, to 1,541.50. Notable performers included Tips Music Ltd, Prime Focus Ltd, Hathway Cable & Datacom Ltd, and D.B. Corp Ltd, which gained up to 2.3%. The Nifty Metal Index also ended higher, advancing 0.40%, or 40.90 points, to close at 10,232.75, led by stocks like Lloyds Metals & Energy Ltd, Welspun Corp Ltd, Jindal Stainless Ltd, and JSW Steel Ltd, which also gained up to 2.3%. The Nifty Pharma Index continued its positive momentum for the fifth straight session, closing at 22,515.70, up 0.34% or 75.80 points.
On the losing side, the Nifty Realty Index was among the sectoral underperformers, slipping 0.10%, or -0.80 points, to settle at 937.40. Shares of Sobha Ltd, DLF Ltd, The Phoenix Mills Ltd, and Prestige Estates Projects Ltd declined by up to 0.5%. The Nifty PSU Bank Index also edged lower, ending at 7,853.30, down 4.55 points or -0.10%. Major laggards included Bank of Baroda, Canara Bank, and Punjab National Bank, which lost up to 0.5%.
In the Asian markets, sentiment was mixed on Wednesday. Japan’s Nikkei 225 ended flat at 49,308, down 8.06 points or -0.02%. Hong Kong’s Hang Seng Index declined 0.91%, or 234.55 points, closing at 25,793, while China’s Shanghai Composite Index edged down 0.07%, or 2.57 points, finishing at 3,913.76. In contrast, South Korea’s KOSPI Index gained 1.54%, or 59.84 points, closing at 3,883.68. As of 4:00 p.m. IST, U.S. Dow Jones Futures were up 0.06%, trading at 46,952.65, a gain of 27.91 points.
Trade Brains Portal is a stock analysis platform. Its trade name is Dailyraven Technologies Pvt. Ltd, and its Sebi-registered research analyst registration number is INH000015729.
Investments in securities are subject to market risks. Read all the related documents carefully before investing.
Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
