Indian equities closed in the red for the third straight week amid heightened volatility, marking the domestic market’s longest weekly losing run in five months. A challenging global backdrop – characterized by persistent geopolitical tensions, firm crude oil prices, rising US bond yields, and mixed overseas cues – kept investor sentiment subdued.
However, robust buying by Domestic Institutional Investors (DIIs), strong outperformance in mid- and small – cap counters, and a late-week resurgence in technology stocks helped cushion the downside and cap overall losses.
Key Benchmark Performance
Both headline indices witnessed modest weekly declines, pulling back under pressure from index heavyweights:
| Index | Weekly Close | Net Change (Pts) | % Change |
| BSE Sensex | 77,264.51 | -276.32 | -0.35% |
| Nifty 50 | 24,175.65 | -76.35 | -0.21% |
Broader Markets Outperform
While the frontlines struggled, broader market indices demonstrated notable resilience:
Nifty Midcap 100: Gained 0.5%, supported by solid traction in Steel Authority of India (SAIL), Glenmark Pharmaceuticals, LIC Housing Finance, and Laurus Labs.
Nifty Smallcap 100: Advanced 0.5%, energized by double-digit rallies in Capri Global Capital, IDBI Bank, IFCI, and Ather Energy.
Sectoral Trends: IT & Metals Shine, Defensives & Auto Lag
Sectoral performance was sharply polarized across the board:
Top Gainers:
Nifty Metal, IT, Pharma, and Healthcare: Advanced over 2% each, leading the defensive and value-buying charge.
Nifty Capital Markets: Gained 1.5%.
Laggards:
Nifty FMCG, Infrastructure, and Oil & Gas: Shed 1% each.
Nifty Auto and Defence: Slipped by nearly 1% each.
Market Capitalisation & Key Stock Movers
The cumulative market capitalisation of BSE-listed entities eroded by slightly more than ₹1 lakh crore over the week.
Top Drags: Reliance Industries led the downside pressure, accompanied by Bharti Airtel, HDFC Bank, and Mahindra & Mahindra.
Top Wealth Creators: Kotak Mahindra Bank, Tata Consultancy Services (TCS), and Infosys cushioned the benchmarks against deeper cuts.
Institutional Flows: FII Selling Meets DII Absorption
The tug-of-war between foreign and domestic institutions continued:
Foreign Institutional Investors (FIIs): Maintained net selling for the second consecutive week, offloading equities worth ₹20,260 crore.
Domestic Institutional Investors (DIIs): Countered foreign outflows by injecting ₹19,309.93 crore into domestic equities.
Rupee Snaps Losing Run
In a holiday – shortened trading week, the Indian Rupee broke its two-week decline, appreciating by 32 paise against the US dollar:
Weekly Close: ₹95.38 / USD (compared to ₹95.70 on August 21).
Weekly Trading Band: Ranged between ₹95.32 and ₹95.75, navigating volatile global currency and bond market dynamics.
While headline benchmarks remain constrained by external headwinds and sustained FII outflows, steady domestic liquidity and strong sectoral rotation – particularly across IT, healthcare, and broader market segments – continue to provide a solid floor for Indian equities.