The week saw the Nifty gaining 1.68 per cent, while the Sensex added 1,450 points, supported by a steady inflow of domestic funds. | Photo Credit: Getty Images
“Indian equities have ended the week decisively higher, with benchmark indices scaling fresh 52-week highs amid resilient domestic cues,” said Vinod Nair, Head of Research at Geojit Investments Ltd. The rally was underpinned by strength in consumption-driven sectors and a broad-based recovery across realty, healthcare, and banking, he added.
The week saw the Nifty gaining 1.68 per cent, while the Sensex added 1,450 points, supported by a steady inflow of domestic funds. Among sectoral indices, capital market and realty outperformed with gains of 5 per cent and 4 per cent, respectively. However, media and IT indices were the major laggards, declining 2.40 per cent and 1.80 per cent, respectively.
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On Friday, FMCG, healthcare, pharma, and auto indices led the rally, showcasing defensive strength and rotation into quality counters. “The sentiment remained upbeat as Bank Nifty achieved a new milestone, driven by robust buying interest in leading banking stocks,” according to Bajaj Broking Research.
However, the broader market took a breather after a strong run-up, with Nifty Midcap 100 slipping 0.57 per cent and Nifty Smallcap 100 marginally down by 0.05 per cent, indicating selective profit-taking by investors. Profit booking was witnessed in IT, media, and metal stocks, which capped the overall upside.
“While IT stocks remained under pressure due to global discretionary spending concerns and mounting asset quality stress in the US banking system, the domestic market remained largely insulated, aided by a strengthening rupee, improving liquidity conditions and domestic inflows,” Nair explained.
Gold prices surged to record levels as global uncertainties, including trade tensions and softening macro data, prompted a flight to safety.
“Technically, on daily and intraday charts, the indices are holding higher-high and higher-low series formation,” said Amol Athawale, VP Technical Research at Kotak Securities. “For traders, 25,550-25,350/83,000-82,400 would act as key support zones, while 26,000/84,400 and 26,300/85,300 would be the crucial resistance levels for the bulls.”
“Looking ahead, the trajectory of Indian equities will be shaped by the ongoing earnings season and policy signals from major global Central banks,” said Nair. Market optimism was bolstered by clarity in India-US trade relations, with both sides tentatively agreeing to conclude the first phase of the deal by November.
The week ahead will be a holiday-led truncated week on account of Diwali. “Investors are expected to maintain a preference for high-quality names across consumption, banking, and real estate, with any market corrections likely to attract renewed buying interest,” Nair added. Investors are likely to remain cautious in view of the release of key economic data, such as US inflation, employment, and India’s PMI figures.
Published on October 17, 2025
