Sensex, Nifty end longest weekly losing streak in 25 years; inflation data and IT results in focus
The Sensex and Nifty snapped an eight-week losing streak, the longest in 25 years, with CPI data and IT earnings set to steer markets this week.
Indian shares ended an eight-week losing streak, the longest run of weekly losses in 25 years, as the Sensex and Nifty rose on Friday, 9 October, and closed the week slightly higher, Reuters and Mint reported. Investors now turn to inflation data and IT company results due in the coming week.
How the indices closed
- Nifty 50: 22,520.45, up 1.3% on Friday and up 98.5 points (0.43%) for the week
- BSE Sensex: 72,472.33, up 1.23% on Friday and up 562.63 points (0.78%) for the week
- In the previous eight weeks, the Nifty had fallen 8.7% and the Sensex 8.4%, according to Reuters
- Small-caps rose 0.5% and mid-caps 0.1% for the week
What drove the rebound
IT stocks led the gains after Tata Consultancy Services reported growing AI-related revenue, Reuters reported. Financial stocks rose 1.7% for the week and IT stocks 1%. Reuters said the Reserve Bank of India raised its policy rate by 25 basis points but did not announce steps to withdraw liquidity, which supported financial shares. Mint reported that the repo rate now stands at 5.50%.
Trent rose 13.1% after strong quarterly sales, while Adani Enterprises fell 6.5%, according to Reuters.
“Accenture and TCS results indicate the worst is over for IT companies in terms of earnings,” Dharmesh Kant, head of equity research at Cholamandalam Securities, told Reuters.
Pressure points remain
- Foreign institutional investors were net sellers for a seventh straight week, selling ₹30,294.29 crore, while domestic institutions bought ₹30,313.48 crore, Mint reported
- Brent crude was around $103 a barrel amid shipping attacks in the Gulf, Reuters reported
- The rupee closed at 96.73 to the dollar, near its all-time low of 96.96, according to Mint
What to watch this week
Mint listed India’s September retail (CPI) and wholesale (WPI) inflation data, US inflation and retail sales figures, and results from HCL Technologies, Wipro, Tech Mahindra, Hero MotoCorp and Nestle India as the main triggers. Ajit Mishra, SVP – Research at Religare Broking, told Mint that 22,200 to 22,400 is key support for the Nifty, and advised traders to “remain selective, avoid excessive leverage and adhere to disciplined risk management.”
Sources: Reuters via Business Recorder, Mint via TradingView.
Related
Annadata Sukhibhava: Andhra farmers likely to get ₹6,000 second instalment around Dasara; what to check
TCS Q2 results: profit rises 15% to about ₹13,900 crore as AI revenue crosses $3 billion; ₹12 dividend declared
