Market Wrap

Indian equity markets ended the week on a positive note, breaking an eight-week losing streak as buying in heavyweight stocks lifted benchmark indices. The Nifty 50 gained 0.44% for the week, while the Sensex advanced 0.78%. On Friday, the Nifty surged 1.30% to close at 22,520.45, while the Sensex rose 1.23% to 72,472.33, supported by strong buying in IT, FMCG and other heavyweight stocks. Despite the recovery, market sentiment remains fragile amid global uncertainties, elevated crude oil prices, rising U.S. Treasury yields and continued pressure on the rupee.

The IT sector emerged as a key contributor to the rebound, with TCS reporting Q2 FY27 revenue growth of 11.2% year-on-year to ₹73,188 crore and net profit growth of 7.6% to ₹13,884 crore. However, its EBIT margin declined to 23.98% from 25.17%, keeping attention on profitability, demand conditions and management commentary as the earnings season progresses.

On the macroeconomic front, the RBI's recent 25-basis-point repo rate hike to 5.50%, accompanied by a shift towards calibrated tightening, has added another consideration for equity investors. Globally, U.S. equities recovered on Friday as concerns over further escalation in the Middle East eased. However, Brent crude remained near $104 per barrel, while elevated U.S. Treasury yields continued to raise concerns about inflation, borrowing costs and emerging-market capital flows.

The RBI also announced measures to curb speculative pressure on the rupee and provide dollars directly to major public-sector oil companies. These steps could help moderate short-term currency volatility, although sustained pressure from expensive crude and foreign capital outflows remains a concern.

What's Ahead

The coming week will test whether Friday's rebound can develop into a sustained recovery. The Nifty's ability to hold above 22,500 will be an important near-term signal, while renewed selling could bring recent lows back into focus. Investors will closely monitor crude oil prices, the rupee's response to the RBI's foreign-exchange measures, U.S.

Treasury yields and foreign institutional investor activity.

Domestic economic data will be another major catalyst. September CPI inflation and industrial production data, scheduled for release after Monday's trading session, will provide fresh insights into inflationary pressures and economic momentum. India's WPI inflation, further corporate earnings and management commentary will also influence sector-specific sentiment.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 rebounded 288.65 points, or 1.30%, to close at 22,520.45, recovering from the previous session's sharp sell-off as buying interest returned across IT, FMCG, healthcare and automobile stocks. The index touched an intraday low of 22,294.75 before advancing toward its session high of 22,580.75, while market breadth remained strongly positive, with 46 stocks advancing against just 4 declining. The RSI moved towards 40, indicating improving momentum, although the broader technical structure remains cautious following the recent correction. For the next session, immediate support is placed at 22,300, followed by the key levels of 22,097 and 21,896. On the upside, 22,747 and 22,947 remain important resistance levels. Sustaining above 22,500 could help extend the recovery, while failure to hold this region may invite renewed selling pressure.

BankNifty

The NIFTY BANK advanced 741.60 points, or 1.36%, to close at 55,256.65, outperforming the broader market as buying strengthened across public- and private-sector lenders. The index maintained a positive trajectory throughout the session and closed near its intraday high of 55,419.30, with 13 constituents advancing against only one declining. The RSI moved towards 50, signalling improving momentum and a strengthening recovery attempt. Immediate support is placed at 54,576 and 54,154, while resistance is positioned at 55,938 and 56,359. A sustained move above 55,938 could extend the upward momentum toward the next resistance zone, whereas a decline below 54,576 would weaken the short-term technical setup.

NIFTY FINANCIAL SERVICES

The NIFTY Financial Services index gained 328.05 points, or 1.33%, to settle at 24,968.50, supported by broad-based buying across insurers, lenders and other financial companies. Market participation was strong, with 18 stocks advancing against just 2 declining, indicating that the recovery extended beyond a handful of heavyweight constituents. The index is now approaching the psychological 25,000 mark, making the nearby resistance zone important for determining whether the rebound can continue. Immediate support stands at 24,663 and 24,474, while resistance is placed at 25,274 and 25,463. A sustained move above 25,274 could strengthen the bullish bias, while failure to hold 24,663 may indicate renewed consolidation.

Sensex

The BSE SENSEX surged 879.09 points, or 1.23%, to close at 72,472.33, as strong buying in IT, FMCG, banking and other heavyweight stocks drove a broad-based recovery. The index recorded gains in 29 of its 30 constituents, highlighting the strength of the session's buying participation. However, despite the sharp rebound, the sustainability of the recovery will depend on whether the index can overcome nearby resistance levels and maintain positive momentum. Immediate support is placed at 71,588 and 71,041, while resistance stands at 73,356 and 73,903. A sustained move above 73,356 could pave the way for a further recovery toward 73,903, whereas a break below 71,588 would signal renewed weakness in the short-term trend.