CHENNAI: Indian equity markets ended the week on a positive note, supported by steady foreign inflows, strong performance from private banks, and improving sentiment in large-cap stocks. The week, however, saw intermittent volatility as investors weighed earnings cues, global uncertainties, and interest rate expectations.
The Nifty 50 closed the week around 25,693 points, gaining about 0.4 percent, while the Sensex also moved higher, led by financials and select heavyweights. The benchmarks hit fresh one-year highs toward the end of the week, reversing midweek declines. On October 14, markets witnessed a brief pullback, with the Sensex slipping nearly 300 points and the Nifty losing over 80 points on profit booking across pharma, consumer durables, metals, media, and PSU bank stocks.
Private banks were the key drivers of the late-week recovery. Axis Bank’s quarterly results lifted sentiment in the banking space, while HDFC Bank and ICICI Bank also supported the rally. Renewed optimism in large caps, particularly Reliance Industries, helped offset weakness in information technology shares, which faced pressure from cautious outlooks and margin concerns.
Foreign institutional investors showed signs of returning after months of selling pressure. FIIs were net buyers of around Rs 3,000 crore during the week, offering crucial support to equity markets. The reversal in flows came as optimism grew over domestic growth prospects and expectations of policy easing by the Reserve Bank of India in coming quarters.
The bond market also reflected improved sentiment, with corporate issuances picking up pace amid growing expectations of rate cuts. Companies such as Bharti Telecom and State Bank of India tapped the debt market, reflecting renewed confidence in credit conditions.
Commodities
Among commodities, gold continued to attract attention as prices remained near record highs, with analysts speculating the metal could test Rs 1,50,000 per 10 grams in the coming months. The rupee traded in a narrow range through the week, cushioned by steady domestic flows despite global volatility linked to trade and currency moves.
On the macro side, expectations of a healthy festive season and stronger consumer spending supported optimism across consumption-linked sectors. However, analysts cautioned that stretched valuations in several large-cap counters and weak global cues could trigger short-term corrections.
Overall market sentiment remained constructive, with the Nifty finding support near 25,000 and resistance in the 25,200–25,300 zone. Technical analysts see potential for the index to move toward 25,500–26,000 if foreign inflows sustain and upcoming earnings reinforce the growth outlook.
In the coming week, investors will focus on the second-quarter results of major banks and industrial companies, which could set the tone for November. Movements in foreign flows, inflation data, and RBI policy signals will remain key triggers.
Despite short-term volatility, the broader market tone continues to favor the bulls, supported by improving liquidity, easing bond yields, and solid corporate fundamentals.
