Archive · 12 Oct 2026
Earnings Outlook Key as Indian Markets End Losing Streak
Indian shares rose this week after falling for eight weeks in a row.
The Sensex and Nifty both finished higher, and several large-company groups also recovered.
Foreign investors continued to sell shares, but Indian institutions bought nearly the same amount.
The rupee weakened against the US dollar.
The Reserve Bank of India raised its key interest rate as it responded to inflation concerns.
Results from Tata Consultancy Services helped lift technology shares, though the sector still faces worries about growth and artificial intelligence.
Investors will watch company results and new economic figures to judge whether the recovery can last.
High oil prices, foreign selling, and global uncertainty could still make markets jumpy.
The Sensex rose 0.78% and the Nifty gained 0.43%, ending an eight-week losing streak.
Foreign investors sold Rs 30,294.29 crore of equities, while domestic institutions bought Rs 30,313.48 crore.
The rupee fell 41 paise to 96.73 against the US dollar, near its reported all-time low of 96.96.
The Reserve Bank of India raised the repo rate by 25 basis points to 5.50% and shifted to calibrated tightening.
Investors are watching corporate earnings, inflation and industrial data, crude prices, and currency movements for signals about the market’s next direction.
- Who
- Indian equity investors, domestic and foreign institutions, and the Reserve Bank of India.
- What
- Indian markets rebounded, ending an eight-week losing streak, while the rupee weakened and the RBI raised its repo rate.
- When
- During the week covered by the article; no calendar dates are specified.
- Where
- India.
- Why
- Technology-sector gains, supported by Tata Consultancy Services' results, helped lift shares, while investors weighed inflation, interest rates, foreign outflows, and earnings prospects.
Reasons for recovery
Risks to the rebound
Market direction
Reasons for recovery
The Sensex and Nifty ended their eight-week losing streak, while domestic institutional buying and gains in several sectors supported the rebound.
Risks to the rebound
The article says the overall bias remains bearish to neutral, with continued foreign selling and high volatility posing risks.
Earnings and sector prospects
Reasons for recovery
Tata Consultancy Services' results offered reassurance about monetising AI capabilities and helped trigger a technology-sector relief rally.
Risks to the rebound
IT shares have faced sustained selling amid concerns about AI-led disruption and subdued growth; the recovery's continuation depends partly on upcoming results and management commentary.
Economic and policy pressures
Reasons for recovery
Sustained domestic inflows, attractive valuations, and improving earnings visibility could support selective buying, while lower crude prices could ease inflation concerns.
Risks to the rebound
Elevated crude prices, higher interest rates, a weaker rupee, global bond yields, geopolitical tensions, and ongoing foreign outflows could pressure markets and corporate financing.
- Sensex weekly close
- 72,472.33, up 562.63 points or 0.78%.
- Nifty weekly close
- 22,520.45, up 98.5 points or 0.43%.
- Foreign institutional flows
- Net equity sales of Rs 30,294.29 crore for the week; the seventh consecutive week of net selling.
- Domestic institutional flows
- Equity purchases of Rs 30,313.48 crore during the week.
- Rupee
- Closed at 96.73 per US dollar after falling 41 paise; the article cites 96.96 as its all-time low.
- RBI repo rate
- Raised by 25 basis points to 5.50%; the RBI shifted from a neutral to a calibrated tightening stance.
- Nifty technical levels
- Resistance around 22,600 and 22,800; support around 22,400, 22,200, and 22,000.
- Market volatility
- India VIX ended the week at 15.27%; the article describes the overall market bias as bearish to neutral.