Markets rebound as easing inflation, strong earnings and the NDA’s sweeping Bihar win offset global tech jitters, setting the stage for a potentially bullish week ahead.
Indian equities wrapped up the week on a buoyant note as benchmark indices advanced, lifted by easing inflation, steady domestic fundamentals and political clarity after the NDA’s sweeping victory in Bihar.
The positive mood was underpinned by record-low October inflation, which has fuelled expectations of an RBI rate cut in the coming months. Analysts said the prospect of cheaper borrowing invigorated investor appetite, particularly in sectors already bolstered by stronger-than-anticipated Q2 earnings.
Vinod Nair, Head of Research at Geojit Financial Services, said the week’s gains were broad-based, with IT, pharma, healthcare and auto stocks leading sectoral momentum. “Toward the week’s close, the NDA’s Bihar election victory bolstered investor confidence, but fading expectations of a U.S. Fed rate cut triggered profit-taking in IT stocks, tempering their earlier gains,” he noted.
Friday’s session proved volatile as markets oscillated between mild losses and fleeting recoveries before staging a sharp late-afternoon rebound. Traders kept a close eye on Bihar’s election count, which became the day’s dominant trigger, even as global cues dragged on sentiment.
Overnight losses on Wall Street, driven by a steep fall in Nvidia and other major tech stocks, weighed on risk appetite in Asia. A research note from Bajaj Broking pointed to softening expectations of near-term Fed rate cuts as a key factor behind the global pullback, with lingering inflation concerns keeping investors cautious.
At closing bell, the Sensex edged up 84 points, or 0.1 per cent, to finish at 84,563. The Nifty gained 31 points to settle at 25,910. Sectoral trends were mixed: PSU banks led the advance with a 1.17 per cent rise, followed by solid moves in pharma and FMCG. Energy and infrastructure posted modest upticks, while IT slipped 1.03 per cent, and auto, metal and realty ended in the red.
In the broader market, the Nifty Small-cap 100 climbed 0.38 per cent and the Midcap 100 added 0.08 per cent, signalling resilient participation beyond blue-chip counters.
Analysts said Nifty’s weekly chart has now formed a strong bull candle featuring a higher high and higher low, suggesting a healthy pullback after two consecutive weeks of correction. “The rebound from the key support zone of 25,400–25,300 aligns with our expectations,” an analyst noted. A sustained move above last month’s peak of 26,100 could pave the way for a re-test of the previous all-time high at 26,277 in the coming week.
Looking ahead, market direction will be shaped by major macro triggers including India’s PMI data, U.S. jobless claims, FOMC minutes and progress in U.S.–India trade negotiations.
