Sensex And Nifty End 8-Week Losing Streak: Can The Market Rally Sustain Next Week?

Indian stock markets are likely to track crude oil prices, inflation data from India and the US, rupee movements, global bond yields and corporate earnings next week as investors assess whether the recent recovery can continue.

Domestic benchmark indices rallied on Friday, supported by buying in information technology (IT), fast-moving consumer goods (FMCG), automobile and financial stocks.

The Nifty rose 288.65 points, or 1.30 per cent, to close at 22,520.45, while the Sensex gained 879.09 points, or 1.23 per cent, to settle at 72,472.33. Both indices ended their eight-week losing streaks.

Persistent foreign investor outflows, elevated crude oil prices, a weakening rupee and concerns over tighter monetary policy continue to weigh on market sentiment.

Brent crude is trading above $100 per barrel, while West Texas Intermediate (WTI) remains above $90.

Uncertainty surrounding Iran, the Strait of Hormuz and regional energy infrastructure has heightened concerns about possible supply disruptions, keeping oil prices a key factor for Dalal Street.

Investors will monitor the US Consumer Price Index (CPI) report for September, scheduled for release on Wednesday, along with US retail sales data.

The figures could influence expectations for the Federal Reserve’s next policy decision, US Treasury yields and the dollar, with implications for emerging-market equities.

India’s September Consumer Price Index (CPI) and Wholesale Price Index (WPI) data will provide further indications of inflation trends and the outlook for interest rates.

Market participants will track movements in the rupee, foreign fund flows and corporate earnings for clues about the direction of equities.

Global monetary policy decisions and bond yields are expected to remain important drivers of investor sentiment in the coming week.

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