The Prime Weekly: 05 October 2026

Authored By Prime Research | Published at: Oct 5, 2026 09:25 AM IST

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Accenture results to help Indian IT companies, Strong odds of Rate Hike from MPC

Wall Street wrapped up the final days of Q3 and kicked off Q4 facing persistent headwinds from soaring Treasury yields, elevated crude oil prices, and a cautious macroeconomic outlook.

Indian benchmark indices extended their losing streak to eight consecutive weeks—marking the longest weekly decline in 25 years.

Sustained strength in the US Dollar Index, coupled with U.S. 10-year Treasury yields pushing toward multi-decade highs, prompted global funds to reallocate capital away from emerging markets toward high-yielding U.S. paper.

The Indian Rupee faced fresh pressure, as crude prices remained high, weakening beyond historic lows toward the 96+ / USD mark.

Accenture reported higher-than-expected fourth-quarter revenue of $18.68 billion and robust new bookings of $22.2 billion, supported by accelerating demand for enterprise AI transformations. Accenture’s shares rallied 16% following the earnings release, breaking a multi-month decline after the firm issued upbeat full-year guidance and expanded operating margin targets.

Accenture’s commentary demonstrated that enterprise AI investments are generating net-new billable work and transformation scope rather than merely cannibalising traditional IT service contracts. Strong managed services bookings signal stabilising global enterprise IT spending, directly boosting demand sentiment for Indian service exporters.

Indian market is pricing in strong odds of a 25 basis point (bps) rate hike at the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting this week.

Nearly 60% of economists polled expect the benchmark repo rate to be raised from 5.25% to 5.50%. This would mark the first rate increase since February 2023.

Short-end bond yields have already begun rising to price in these expectations. Markets will closely monitor Governor Sanjay Malhotra’s commentary regarding future liquidity drainage measures and forward hawkishness

The Indian equity market has largely priced in the anticipated 25 basis point (bps) rate hike. After a multi-week correction, benchmark indices are down roughly 14% for the year. Quarterly updates from banks and NBFCs point to an encouraging pickup in credit growth.

Nifty breached the crucial 200-week SMA at 22,380 intraday but closed above it on Friday. Nifty found support near the April 2026 swing low of 22,182. A decisive break below 22,182 could drag the index toward the next support at 21,750, while 22,810 remains the immediate resistance for any recovery attempt.

Indian equities are poised for a strong rebound at the open, powered by upbeat Accenture results, improving credit growth, and heavy FII short positions that could fuel a short-covering rally.

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