Indian equity benchmarks extended their recovery for a second consecutive week as investors brushed aside early inflation concerns, with sentiment getting a fresh boost after the Reserve Bank of India’s special dollar window for oil marketing companies helped the rupee rebound.
The Nifty climbed 2.78 per cent over the week and added 0.65 per cent on the final trading day to settle at 23,146. The Sensex rose 413 points, or 0.56 per cent, to close at 74,729, notching a weekly gain of 3.11 per cent.
Trading began on a cautious note as consumer inflation hovered near the upper end of the central bank’s tolerance band, while a hotter-than-expected wholesale price index print pushed benchmark bond yields to multi-year highs. The RBI’s move to raise the daily cash reserve ratio maintenance requirement to absorb surplus liquidity added to the wariness.
Confidence, however, improved after the central bank’s special dollar window for oil marketing companies and tighter hedging norms triggered a rupee rebound, analysts said. “Expectations of a review of LTCG tax and STT, softer crude prices and easing bond yields further revived risk appetite, prompting investors to tilt towards counters with strong Q2FY27 business updates, though the rally remained concentrated in large-caps, with mid-caps posting modest gains and small-caps ending marginally lower,” they added.
Market experts also urged caution, saying, “Participants should remain selective, maintain disciplined position sizing and favour a hedged approach amid elevated macroeconomic and earnings-related uncertainty.”
Among sectors, information technology emerged as the standout performer on the back of robust earnings and upbeat management commentary, while healthcare and pharmaceuticals lagged as investors favoured businesses with stronger near-term earnings visibility. Fast-moving consumer goods stocks, meanwhile, came under pressure amid concerns over margin compression from elevated input costs.
Broader markets largely tracked the benchmarks, with the Nifty Midcap100 adding 0.58 per cent and the Nifty Smallcap100 dipping 0.12 per cent during the week.
On the flows front, foreign institutional investors turned net buyers of Rs 11.66 billion in Indian equities on Friday as overall selling eased sharply through the week on improving sentiment. FIIs nonetheless remained net sellers for the ninth straight week, though their weekly outflow moderated to Rs 89.91 billion from Rs 302.94 billion the previous week. Domestic institutional investors stayed net buyers for a ninth consecutive week at Rs 78.13 billion, despite selling Rs 36.61 billion worth of shares on Friday.
Analysts said the sustainability of the market recovery will hinge on earnings growth broadening beyond IT, with revenue and margin delivery across financials, consumption and industrials under close scrutiny.
Looking ahead, investors are keen on India’s October PMI for insight into domestic demand momentum, while US jobless claims and Japan’s inflation print will shape global rate expectations.
Original Source: https://theshillongtimes.com/2026/10/18/nifty-sensex-see-firm-recovery-after-rbis-support-to-rupee/
Category: Business
Tags:
Publish Date: 2026-10-18 05:54:00
