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Sensex Recovers Marginally as RBI Governor Signals Vigilance on Inflation; Wipro Q2 Results Mixed

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The Indian equity markets witnessed a volatile afternoon session, with the Sensex recovering some losses after RBI Governor Shaktikanta Das reiterated the central bank's commitment to price stability and hinted at continued vigilance on inflation, impacting banking and rate-sensitive stocks. Meanwhile, IT major Wipro announced its Q2 FY27 results, reporting a slight revenue miss but a profit beat driven by operational efficiencies, leading to initial stock volatility. The Nifty 50 struggled to hold key support levels, reflecting broader market caution as the trading day neared its close.

Key highlights

• RBI Governor: Stated the central bank remains "nimble and flexible" on liquidity management, emphasizing inflation control as a priority.
• Wipro Q2 FY27: Reported consolidated net profit of ₹3,050 crore, up 3% QoQ, while revenue stood at ₹24,800 crore, marginally below analyst estimates.
• Renewable Energy Sector: Shares surged after the Ministry of New and Renewable Energy announced an expanded PLI scheme for solar module manufacturing and green hydrogen.
• L&T Construction: Secured a significant ₹3,500 crore order from a state government for a major urban infrastructure project, boosting its stock.
• Nifty 50: Traded around 22,150, struggling to maintain momentum above the 22,200 mark amid profit booking in late trade.

RBI Governor Signals Continued Vigilance on Inflation and Liquidity

Reserve Bank of India Governor Shaktikanta Das, in a scheduled address to bankers this afternoon, underscored the central bank's unwavering focus on achieving the 4% inflation target while maintaining financial stability. Speaking at a private event around 3:00 PM IST, Governor Das stated that the RBI remains "nimble and flexible" in its approach to liquidity management, indicating that the central bank would not hesitate to take necessary measures to address any undue tightness or surplus in the system.

Key takeaways from the address

Governor Das highlighted that while headline inflation has shown signs of moderation, core inflation remains a concern, necessitating a cautious stance. He emphasized that the RBI's monetary policy committee (MPC) would continue to be data-dependent, with future actions guided by evolving economic indicators, particularly food price dynamics and global commodity price movements. The Governor also touched upon the robust growth trajectory of the Indian economy, noting its resilience amidst global headwinds. He urged banks to remain vigilant about asset quality and credit growth, ensuring sustainable lending practices.

Market reaction

Following the Governor's remarks, the Indian rupee showed marginal strengthening against the US dollar, trading around 83.25. Bond yields, which had seen some upward pressure earlier in the day, eased slightly as market participants interpreted the statement as a reaffirmation of the RBI's commitment to a stable interest rate environment in the near term, albeit with a hawkish undertone on inflation. Banking stocks, particularly public sector banks, witnessed some buying interest, recovering from earlier session lows, as clarity on liquidity management provided some comfort.

Why it matters

The RBI Governor's statement is crucial for market participants seeking cues on the central bank's monetary policy trajectory. His emphasis on inflation control suggests that while rate hikes might be off the table for now, any significant easing of policy could be delayed until inflation is firmly within the target band. The assurance on liquidity management helps in managing short-term interest rate expectations and ensures smoother functioning of the financial system. Investors will closely watch upcoming inflation data and MPC minutes for further insights.

Wipro Reports Mixed Q2 FY27 Results Amidst Tech Slowdown

IT services major Wipro Ltd. (NSE: WIPRO) announced its financial results for the second quarter ended September 30, 2026, just after market hours at 2:15 PM IST. The Bengaluru-headquartered company reported a consolidated net profit of ₹3,050 crore, marking a 3% sequential increase, which surpassed analyst expectations. However, its consolidated revenue from operations came in at ₹24,800 crore, a marginal miss against consensus estimates, reflecting the ongoing cautious spending environment in the global technology sector.

Performance highlights

Wipro's IT Services segment revenue, in constant currency terms, grew by 0.5% quarter-on-quarter, falling within the lower end of its guidance range. The company attributed the profit beat to stringent cost management initiatives and improved operational efficiencies across its service lines. Operating margin for the IT Services segment expanded by 20 basis points to 16.2%, indicating effective execution on profitability despite revenue pressures. Deal wins for the quarter remained robust, with Total Contract Value (TCV) reaching $3.5 billion, driven by a mix of large deals and renewals.

Management commentary and outlook

CEO and Managing Director, Thierry Delaporte, stated that Wipro continues to focus on strategic investments in AI, cloud, and cybersecurity to drive future growth. He acknowledged the challenging macroeconomic environment but expressed confidence in the company's ability to navigate these headwinds through its client-centric approach and differentiated offerings. The company provided a cautious outlook for the third quarter, projecting IT Services revenue to be in the range of -0.5% to +1.5% in constant currency terms, reflecting continued demand uncertainty.

Stock reaction

Wipro shares, which were trading flat before the announcement, saw a brief dip immediately after the results were released, falling by nearly 1%. However, the stock recovered some ground to trade down by approximately 0.4% by 3:50 PM IST, as investors digested the profit beat and strong deal wins against the backdrop of a slightly weaker revenue performance and cautious guidance. The broader IT sector also remained under pressure, influenced by global tech spending concerns.

More stocks and market news

Renewable Energy Sector: Government Boosts Green Initiatives

Shares of renewable energy companies witnessed a significant uptick in afternoon trade following an announcement from the Ministry of New and Renewable Energy (MNRE). The ministry confirmed an expansion of the Production Linked Incentive (PLI) scheme for high-efficiency solar PV modules and introduced new incentives for green hydrogen production and export. This policy push aims to accelerate India's transition to clean energy and enhance domestic manufacturing capabilities. Companies like Adani Green Energy, Borosil Renewables, and Sterling and Wilson Renewable Energy saw their stocks gain between 2% and 5% on the news, reflecting positive investor sentiment towards the sector's growth prospects.

L&T Construction: Secures Major Infrastructure Order

Larsen & Toubro's construction arm, L&T Construction, announced today that it has secured a significant order valued at ₹3,500 crore from a state government for a major urban infrastructure development project. The project involves the design and construction of a multi-modal transport hub and associated infrastructure in a tier-2 city. This large order win falls under the "large" category for L&T, which typically ranges between ₹2,500 crore and ₹5,000 crore. The announcement, made via an exchange filing around 3:30 PM IST, provided a late-day boost to L&T shares, which traded up by nearly 1.5% as the market closed, signaling investor confidence in the company's execution capabilities and order book pipeline.

Market context

As of 3:50 PM IST, the Nifty 50 was trading at 22,152.30, down 0.25%, while the BSE Sensex stood at 73,285.10, a marginal gain of 0.05%. The Nifty Bank index was up 0.30% at 47,210.45, showing resilience after the RBI Governor's comments. The India VIX, a measure of market volatility, was at 12.85, indicating moderate investor anxiety. Globally, Asian markets closed mixed, while European markets were trading with a negative bias, influenced by lingering concerns over global inflation and interest rates. Brent crude oil was trading around $88.50 per barrel, remaining a key factor for India's import bill and inflation outlook.

Why these stories matter

The RBI Governor's statement is pivotal as it sets the tone for monetary policy, directly influencing borrowing costs, corporate earnings, and overall economic sentiment. Wipro's mixed results highlight the ongoing challenges and opportunities within the Indian IT sector, a major contributor to India's GDP and exports, impacting investor perception of the broader tech industry. The government's renewed focus on renewable energy signals policy support that can drive significant investment and growth in green sectors, while L&T's order win underscores the continued momentum in India's infrastructure development, a key driver for economic expansion and job creation.

What to watch next

• RBI MPC Minutes: Investors will keenly await the minutes of the latest Monetary Policy Committee meeting for detailed insights into members' views on inflation and growth.
• Global Inflation Data: Upcoming inflation figures from major economies, particularly the US and Eurozone, will influence global interest rate expectations and FII flows.
• IT Sector Deal Wins: Further updates on deal pipeline and client spending from other IT majors will provide clarity on the sector's near-term outlook.
• Government Policy Announcements: Any further policy initiatives related to infrastructure or manufacturing could provide fresh triggers for specific sectors.

Sources

• The Economic Times: RBI Governor Shaktikanta Das on inflation, liquidity
• Business Standard: RBI to remain nimble on liquidity, committed to 4% inflation target: Das
• Moneycontrol: Wipro Q2 FY27 Results: Net profit up 3% QoQ, revenue misses estimates
• NSE India: Wipro Ltd. Corporate Announcements
• Press Information Bureau (PIB): MNRE announces expanded PLI scheme for solar, green hydrogen

FAQ

1. What were the key takeaways from RBI Governor Shaktikanta Das's statement today?

RBI Governor Shaktikanta Das reiterated the central bank's commitment to achieving the 4% inflation target and emphasized a "nimble and flexible" approach to liquidity management. He noted concerns about core inflation and highlighted the RBI's data-dependent stance for future monetary policy actions.

2. How did Wipro perform in Q2 FY27?

Wipro reported a consolidated net profit of ₹3,050 crore, which was up 3% quarter-on-quarter and beat analyst expectations. However, its revenue from operations stood at ₹24,800 crore, marginally missing consensus estimates, reflecting a cautious global tech spending environment.

3. What is the government's latest initiative for the renewable energy sector?

The Ministry of New and Renewable Energy (MNRE) announced an expansion of the Production Linked Incentive (PLI) scheme for high-efficiency solar PV modules and introduced new incentives for green hydrogen production and export, aiming to boost domestic manufacturing and clean energy transition.

4. Why did L&T shares gain today?

Larsen & Toubro's construction arm secured a significant urban infrastructure project order worth ₹3,500 crore from a state government. This large order win boosted investor confidence in L&T's order book and execution capabilities, leading to a rise in its share price.

5. What is the current market sentiment in India?

The Indian market showed mixed sentiment, with the Nifty 50 trading slightly down while the Sensex posted marginal gains. Investor caution persists due to global inflation concerns and mixed corporate earnings, though specific sector-positive news provided some support.

6. What is the outlook for the Indian IT sector?

The outlook for the Indian IT sector remains cautious, as indicated by Wipro's guidance. While deal wins remain robust, revenue growth faces headwinds from global macroeconomic uncertainties and client spending moderation. Companies are focusing on cost efficiencies and strategic investments in new technologies.

Disclaimer

Disclaimer: This article is for educational purposes only. It does not constitute investment advice. Please consult a SEBI-registered financial advisor before making investment decisions.