1 day ago
Indian Stocks End Eight-Week Slide as Investors Weigh Next Moves
Indian stocks went up this week after falling for eight weeks in a row.
The biggest gains came on Friday, when shares in technology, consumer goods, car and financial companies rose.
But one good day does not prove that prices will keep rising.
Foreign investors sold many shares, while Indian institutions bought a similar amount.
Oil prices, inflation, the rupee and interest rates around the world could affect what happens next.
Investors are also waiting for company results and economic reports from India and the United States.
Some analysts think stocks could recover if they stay above important levels.
Others warn that prices could fall again if buying does not continue.
The articles also report different technical levels and market conditions, so the recovery remains uncertain.
The Sensex and Nifty posted weekly gains of 0.78% and 0.43%, ending an eight-week losing streak—their longest in 25 years.
Friday’s rally lifted the Sensex 1.23% to 72,472.33 and the Nifty 1.30% to 22,520.45, led by IT, FMCG, automobile and financial shares.
Foreign investors sold about ₹30,294 crore of equities during the week, while domestic institutions bought about ₹30,313 crore.
Investors will watch Indian and US inflation data, oil prices, the rupee, bond yields, foreign flows and corporate earnings for clues on whether the rebound can last.
Analysts differ on the recovery’s prospects: cited Nifty markers include 22,200–22,400 support, 22,550 resistance and possible rebounds toward 22,786–23,300.
- Who
- Indian equity markets, investors and analysts, including Deven Choksey, Chandan Taparia, Vinod Nair and Ajit Mishra.
- What
- The Sensex and Nifty ended an eight-week losing streak with weekly gains, but the durability of the rebound remains uncertain.
- Where
- Indian stock markets.
- When
- The week ended Friday, October 9; the articles discuss market events and data due the following week.
- Why
- Buying in several sectors supported the late-week rebound, while foreign selling, oil prices, inflation concerns, currency weakness and global bond yields remain risks.
Reasons the rebound could continue
Risks that could stall the recovery
Market direction
Reasons the rebound could continue
Weekly gains, Friday's broad-sector buying and domestic institutional purchases offer support. Deven Choksey said valuations appeared attractive and could draw large institutional investors if conditions stabilize.
Risks that could stall the recovery
Analysts cautioned that the rally does not confirm a durable bottom. Chandan Taparia said a sustained move above 22,550 would be needed for a meaningful rebound; otherwise, 22,222 could be retested.
Investor flows and macroeconomic pressures
Reasons the rebound could continue
Domestic institutions bought about ₹30,313 crore, helping absorb foreign selling. Articles also said easing crude prices and reduced geopolitical concerns supported Friday's rally.
Risks that could stall the recovery
Foreign investors sold about ₹30,294 crore for a seventh consecutive week. High oil prices, Treasury yields and pressure on the rupee could weigh on equities and complicate the inflation outlook.
Earnings and longer-term prospects
Reasons the rebound could continue
Strong results and constructive company commentary, including on IT demand and AI-related revenue opportunities, could help sustain confidence. Choksey described valuations as attractive and saw potential for a longer-term rally if conditions stabilize.
Risks that could stall the recovery
The recovery could falter if earnings or guidance disappoint. Vinod Nair said actual September-quarter company performance would be important in determining whether the rebound is sustainable.
Key facts
- Sensex weekly close
- 72,472.33, up 562.63 points or 0.78%
- Nifty 50 weekly close
- 22,520.45, up 98.5 points or 0.43%
- Friday's gains
- Sensex rose 879.09 points (1.23%); Nifty gained 288.65 points (1.30%)
- Institutional flows
- Foreign investors sold about ₹30,294 crore; domestic institutions bought about ₹30,313 crore
- RBI policy
- The RBI raised the repo rate by 25 basis points to 5.50% and shifted its stance towards calibrated tightening
- Nifty levels cited
- Analysts cited support at 22,200–22,400, a 22,550 hurdle, and potential rebound zones ranging from 22,786–23,000 to 23,000–23,300; another analysis identified 21,800 as a possible correction level
- Upcoming market drivers
- Indian CPI and WPI, US inflation and retail sales, company earnings, crude oil, geopolitical developments, the rupee, Treasury yields and investor flows
- Rupee
- Closed at 96.73 per US dollar; reports cite a weekly low of 96.85 or 96.87 and a record low of 96.96 or 96.97
Quotes
Chandan Taparia
Head of Derivatives and Technical Research at Motilal Oswal
“The immediate priority is to negate the prevailing negative structure. If the index sustains above 22,550, it could show signs of stability and potentially rebound towards 22,786-23,000. However, if it fails to cross and sustain above 22,550, the recovery could fizzle out, bringing 22,222 back into focus for a retest. Therefore, the trade setup remains conditional on the index sustaining above 22,550 for a meaningful recovery or rebound.”
businesstoday.in
“IT stocks outperformed on the back of a strong start to the Q2 earnings season and rising confidence in AI-driven revenue opportunities. Sentiment was aided by easing geopolitical concerns following indications that any potential US military action against Iran is unlikely before the midterm elections, helping crude prices moderate. However, persistent FII outflows and elevated global bond yields continue to temper the recovery outlook.”
businesstoday.in
Sources
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