Markets End Week Strong As FIIs Cover Shorts; Bank Nifty Hits Record High

Indian equity markets wrapped up the week on a strong note, supported by short covering from foreign institutional investors (FIIs) and steady domestic momentum.

Investor confidence improved as clarity emerged on India–US trade discussions, with both nations expected to finalise the first phase of their trade deal by November.

The mood in the market remained upbeat as the Bank Nifty touched a fresh record high, fuelled by strong buying in major banking counters.

Confidence in the financial sector strengthened further as worries over asset quality eased and expectations rose for healthy business activity during the festive quarter.

During the week, benchmark indices Nifty and Sensex advanced 2.10 per cent and 2.04 per cent, respectively.

The rally was led primarily by FMCG, pharmaceutical, and automobile stocks.

According to market experts, consumption-oriented sectors registered solid gains, alongside a broad-based recovery across real estate, healthcare, and banking shares.

In contrast, IT stocks lagged behind due to concerns over global discretionary spending. Investors also worried about growing asset quality pressures in the US banking industry.

Profit-taking in media and metal shares also restrained the overall upside in the benchmark indices.

Meanwhile, the broader market showed signs of consolidation after recent gains.

The Nifty Midcap 100 slipped 0.57 per cent, while the Nifty Smallcap 100 dipped slightly by 0.05 per cent. The decline suggested selective profit booking by investors.

Analysts at Bajaj Broking Research noted, “Nifty on the weekly chart has formed a sizable bull candle with a higher high and higher low, signalling continuation of the up move. The index broke out above a three-month symmetrical triangle consolidation pattern, indicating a positive bias.”

They further projected that the index could move towards 25,900 and potentially reach 26,200 in the coming weeks.

Looking ahead to the shortened Diwali week, analysts said investors may adopt a cautious stance. They expect limited activity in the markets.

Participants are awaiting key global and domestic data releases, including US inflation, employment figures, and India’s PMI numbers.

Market participants will also be closely tracking corporate earnings and signals from leading central banks worldwide for further direction.

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