Sensex, Nifty Today, October 26: Markets Rebound From Early Losses as Pharma and Banking Stocks Gain

Onetrader | India Midday Market Update | Monday, October 26, 2026

Indian stock markets staged a sharp recovery from early losses on Monday, October 26, 2026, as buying emerged in selected pharmaceutical, banking and industrial stocks. The rebound followed a difficult previous week, although benchmark indices struggled to establish a sustained upward trend.

At approximately noon IST, the BSE Sensex was reported at 73,179.83, up 54 points or 0.07%, while the Nifty 50 traded near 22,610, up 11 points or 0.05%. These figures represent an intraday snapshot rather than closing levels.

The recovery was uneven, with positive earnings reactions supporting some companies while disappointing growth forecasts weighed on others.

Also Read: Top Q2 Earnings: Infosys, Adani Power, Dr Reddy’s and More

Sensex Recovers From Sharp Morning Decline

Indian equities opened under pressure as investors assessed global uncertainty and the outlook for corporate earnings.

The Sensex had fallen by more than 500 points during early trading before recovering much of its decline. By noon, both benchmark indices were marginally positive.

The recovery followed a week in which the Nifty 50 lost approximately 2.4% and the Sensex declined 2.2%. Both benchmarks had fallen during all four trading sessions of the previous week.

The sharp reversal illustrates the difference between intraday buying and a sustained market recovery. Although selected stocks attracted interest, the benchmark indices remained close to their previous closing levels at noon.

Also Read: Indian Markets: 10 Fresh Developments to Watch on October 26

Kotak Mahindra Bank Gains Following Strong Quarterly Results

Kotak Mahindra Bank was among Monday’s notable gainers after reporting better-than-expected September-quarter earnings.

The bank’s results benefited from stronger lending activity and lower provisions for bad loans.

Its shares gained approximately 2.3% in an early market report. A separate noon market snapshot recorded the stock at ₹438.40, up 1.84%.

The positive reaction highlighted investor interest in banks demonstrating earnings resilience despite an uncertain operating environment.

Also Read: Indian Market Opening Today: GIFT Nifty Signals Cautious Start as Oil and Fed Risks Weigh

For the banking sector, loan growth, funding costs and asset quality remain important factors influencing profitability.

Dr Reddy’s Laboratories Rallies After Earnings Beat

Dr Reddy’s Laboratories also attracted buying interest following its quarterly financial results.

The pharmaceutical company reported better-than-expected profit, with domestic demand helping offset weaker conditions in its important US market.

The stock gained approximately 3% in an early market report. At noon, it was quoted at ₹1,279.90, up 4.10%, in an independently timestamped market snapshot.

Also Read: Stocks to Watch Today: October 26, 2026 – Infosys, Kotak Bank, Coforge and More

The positive reaction showed that investors were responding selectively to earnings performance, particularly where domestic business strength helped cushion international pressures.

Shriram Finance Falls After Lowering Growth Forecast

Shriram Finance was among the session’s biggest losers after reducing its assets-under-management growth outlook for the financial year ending March 2027.

The company lowered its forecast to 15–17%, from an earlier 18%, citing weak monsoon conditions, geopolitical uncertainty and concerns about borrowers in drought-affected regions.

The company reported September-quarter net profit of approximately ₹3,683.81 crore, an increase of about 59.2% year-on-year.

Also Read: US Stock Market Week Ahead: Fed Decision, Big Tech Earnings and GDP (Oct 26-30, 2026)

Despite the higher profit, Shriram Finance shares fell to an 11-month low during morning trading. At noon, the stock was quoted at ₹819.75, down 5.23%.

The decline highlighted investors’ concern about future loan growth and credit costs rather than the reported quarterly profit alone.

Infosys Declines After Revising Revenue Guidance

Infosys shares faced selling pressure after the company reduced its annual revenue growth forecast.

In its official October 23 earnings announcement, Infosys revised its FY27 constant-currency revenue growth guidance to 1–2%, while retaining its operating margin guidance of 20–22%.

Also Read: Top 10 Fresh Indian Market News Today: RailTel, Petronet LNG, IndiGo and More

The company reported September-quarter revenue of ₹49,244 crore, representing year-on-year growth of 10.7%. Its operating margin stood at 21%.

Despite these results, investors remained concerned about weaker demand in North America and the company’s near-term growth outlook.

Infosys shares declined approximately 2% in an early market report on Monday. The reaction demonstrated how forward guidance can influence valuations even when a company reports revenue growth.

Coforge Falls Despite Strong Profit Growth and Record Orders

Coforge also experienced selling pressure following its September-quarter earnings announcement.

Also Read: Top Earnings Today: IDFC FIRST Bank, Kotak, AU SFB and SBFC Finance

The company reported revenue of approximately ₹6,170.8 crore, an increase of 53.6% year-on-year, while profit after tax rose 56.5% to ₹588.1 crore.

Coforge secured eight large deals during the quarter, with a combined total contract value of $1.04 billion. Its executable order book for the following 12 months reached $2.38 billion.

Management also raised its FY27 EBIT margin guidance from 15.5% to 16%.

Nevertheless, the stock declined approximately 2.3% in early trading. Independent market reporting indicated that revenue had fallen short of analyst expectations and organic growth remained a concern.

Also Read: Top 10 Global Market News Today: Brazil Vote, Audi’s U.S. Plant & More

The development illustrates how strong annual earnings growth can coexist with disappointment over quarterly expectations.

Broader Markets Show Selective Recovery

Midcap and smallcap stocks showed signs of improvement during late-morning trading.

At 11:44 AM IST, the Sensex was down 0.12% and the Nifty 50 had declined 0.16%. One minute later, the Nifty Midcap 100 was up 0.15%, while the Nifty Smallcap 100 gained 0.34%.

The contrast suggested that buying interest was returning to selected smaller companies even as the benchmark indices remained under pressure.

Also Read: Top Earnings Today: JK Cement, Kajaria, JK Tyre and More

Pharmaceutical, metal and selected financial stocks attracted attention, while earnings-related selling continued in parts of the technology and lending sectors.

However, the improvement in broader-market indices did not establish a sustained recovery across the entire market.

What Investors Should Watch During the Afternoon Session

The key question for the remaining session is whether buying in pharmaceutical, banking and selected midcap stocks can support a more sustained recovery in the benchmark indices.

Investors should also monitor earnings-related developments, particularly companies where management guidance differs from reported profit growth.

Also Read: Top 10 Fresh Indian Market News Today: SEBI Action, RBI Centre and More

Shriram Finance’s revised lending outlook, Infosys’s lower revenue guidance and Coforge’s operating performance remain relevant company-specific developments.

Because the index and stock quotations in this report were recorded at different times during the morning and around noon, they should not be interpreted as simultaneous live prices.

Conclusion

Indian stock markets recovered sharply from early losses on October 26, although the rebound remained uneven.

Kotak Mahindra Bank and Dr Reddy’s Laboratories attracted buying following better-than-expected quarterly results, while Shriram Finance declined after lowering its growth outlook.

Also Read: Top 10 Fresh Indian Market News Today: Jio IPO, Bank Results and More

Infosys and Coforge also faced selling pressure despite reporting revenue or profit growth, highlighting investors’ focus on future business performance.

The day’s trading reinforced the importance of examining management guidance, credit costs, operating margins and market expectations alongside headline quarterly earnings.

Financial Disclaimer: This article is published by Onetrader for educational and informational purposes only. It does not constitute investment advice, trading recommendations or an offer to buy or sell securities. Equity investments involve market risks, including the potential loss of capital. Readers should independently verify financial information and consult a qualified financial professional where appropriate. Onetrader is not registered with SEBI as an investment adviser or research analyst.