Indian equity markets bounced back during the week, ending their eight-week losing streak, the longest in the last 25 years. The recovery came despite continued foreign investor selling, rising crude oil prices, higher global bond yields, and the Reserve Bank of India’s decision to raise the repo rate by 25 basis points to 5.50%.
The positive momentum was supported by strong domestic institutional buying, helping benchmark indices close the week in the green.
Benchmark Indices Performance
For the week:
- BSE Sensex gained 562.63 points (0.78%) to close at 72,472.33.
- Nifty 50 advanced 98.50 points (0.43%) to end at 22,520.45.
The gains indicate improving investor sentiment after several weeks of continuous market weakness.
Midcap & Smallcap Performance
The Nifty Midcap 100 Index snapped its four-week losing streak and ended the week almost flat. Stocks such as LIC Housing Finance, ICICI Lombard, BSE Ltd., Blue Star, Persistent Systems, and Radico Khaitan were among the top gainers. On the downside, Mankind Pharma, Phoenix Mills, IREDA, Max Financial Services, Biocon, and Hero MotoCorp witnessed notable declines.
The Nifty Smallcap 100 Index also broke its four-week losing streak, rising 0.5% during the week. Leading the gains were PhysicsWallah, Firstsource Solutions, Deepak Fertilisers, Gland Pharma, Meesho, PG Electroplast, and PNB Housing Finance. Meanwhile, Bandhan Bank, HBL Engineering, Ola Electric Mobility, Whirlpool India, and Ircon International were among the major losers.
Sectoral Performance
Sector performance remained mixed during the week.
Top Performing Sectors
- Nifty Capital Markets: +2%
- Nifty FMCG: +2%
- Nifty PSU Bank: +2%
- Nifty Private Bank: +2%
- Nifty IT: +1%
Underperforming Sectors
- Nifty Realty: -3%
- Nifty Metal: -3%
- Nifty Auto: -2%
- Nifty Defence: -1.5%
Banking and FMCG stocks supported the market, while Realty, Metal, and Auto stocks remained under pressure.
Investor Activity
Foreign Institutional Investors (FIIs) remained net sellers for the seventh consecutive week, selling equities worth ₹30,294.29 crore.
On the other hand, Domestic Institutional Investors (DIIs) continued to provide strong support by purchasing equities worth ₹30,313.48 crore, almost completely offsetting the foreign selling. This consistent domestic buying played a key role in helping the market recover during the week.
Market Capitalisation
Despite the positive close in benchmark indices, the total market capitalisation of BSE-listed companies declined by ₹1.64 lakh crore.
Among the biggest contributors to the decline were:
- HDFC Bank
- Sun Pharmaceutical Industries
- Titan Company
Meanwhile, the biggest wealth creators during the week included:
- Bharti Airtel
- ICICI Bank
- Tata Consultancy Services (TCS)
Currency Market
The Indian Rupee weakened for the second consecutive week, closing at ₹96.73 per US Dollar, compared with ₹96.32 in the previous week. During the week, the rupee traded in the range of ₹96.22–₹96.85 against the US dollar, moving closer to its all-time low of ₹96.96.
Key Takeaway
Although global challenges such as rising crude oil prices, higher bond yields, and continued foreign fund outflows remained in focus, Indian equity markets managed to end their longest losing streak in 25 years. Strong buying by domestic institutional investors and gains in banking, FMCG, and IT stocks helped the markets recover. Going forward, investors will closely monitor RBI policy actions, FII flows, crude oil prices, corporate earnings, and global economic developments for further market direction.
Source: Moneycontrol
