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Markets end higher for second straight week amid foreign fund inflows
Oct-10-2025

Indian equity benchmarks ended higher for second straight week amid foreign fund inflows and hopes of steady Q2 FY26 earnings. Traders took some sense of relief with easing geopolitical tension in the Middle East. Some support also came as Prime Minister Narendra Modi and US President Donald Trump have reviewed the ongoing trade negotiations between India and the US. 

Some of the major developments during the week are:

Services sector growth eases in September: India services sector growth eased in September but was well above the neutral mark of 50.0 to signal another substantial upturn in output. The seasonally adjusted HSBC India Services PMI Business Activity Index slowed to 60.9 in September from 62.9 in August.

World Bank raises India’s growth forecast for FY26: The World Bank in its South Asia Development Update has raised India’s growth forecast to 6.5% for FY26 from its earlier projection of 6.3% in June. However, considering the US’ tariff action, it has cut the forecast for FY27 by 20 basis points to 6.3%.

India's outward FDI falls 8% in September 2025: The Reserve Bank of India (RBI) in its latest data report has showed that India’s outward foreign direct investment (OFDI) commitments declined 8.27% to $4419.43 million in September 2025, from $4817.89 million in September 2024. 

Passenger vehicle retail sales shot up in 9-day Navratri period this year: Federation of Automobile Dealers Associations has said that passenger vehicle retail sales shot up 35% year-on-year during the nine-day Navratri period this year, helping the overall registrations grow 6 per cent in September 2025.

India's manufacturing sector poised for strong growth, expansion: FICCI in its latest survey has said that India's manufacturing sector is poised for strong growth and expansion, with 87 per cent of respondents reporting higher or same production levels for the September quarter (Q2FY26).

BSE movement for the week

The Bombay Stock Exchange (BSE) Sensex surged 1293.65 points or 1.59% to 82,500.82 during the week ended October 10, 2025. The BSE Midcap index gained 684.18 points or 1.50% to 46,362.29 and Smallcap index surged 3.59 points or 0.01% to 53,378.57. On the sectoral front, S&P BSE Information Technology was up by 1,436.85 points or 4.28% to 34,985.28, S&P BSE TECK was up by 674.57 points or 4.05% to 17,316.08 and S&P BSE Healthcare was up by 1,164.34 points or 2.68% to 44,688.17 were the top gainers, while S&P BSE Fast Moving Consumer Goods was down by 68.08 points or 0.34% to 20,231.32, S&P BSE Power was down by 12.43 points or 0.18% to 6,796.13, and S&P BSE Metal was down by 58.06 points or 0.17% to 33,990.56 were the few losers on the BSE.

NSE movement for the week

The Nifty surged 391.10 points or 1.57% to 25,285.35. On the National Stock Exchange (NSE), Nifty IT was up by 1659.30 points or 4.89% to 35,609.05, Nifty Mid Cap 100 increased 1194.05 points or 2.08% to 58,697.40, Bank Nifty was up by 1020.50 points or 1.84% to 56,609.75, and Nifty Next 50 gained 331.35 points or 0.48% to 68,687.25.

FII transactions during the week

Foreign Institutional Investors (FIIs) were net buyers in equity segment in the week, with gross purchases of Rs 65,517.88 crore and gross sales of Rs 63,766.09 crore, leading to a net inflow of Rs 1,751.79 crore. They also stood as net buyers in the debt segment with gross purchases of Rs 16,862.82 crore against gross sales of Rs 14,724.90 crore, resulting in a net inflow of Rs 2,137.92 crore. In hybrid segment, FIIs stood as net buyers, with gross purchases of Rs 512.48 crore and gross sales of Rs 98.87 crore, leading to a net inflow of Rs 413.61 crore.

Industry and Economy

Expressing optimism over India’s economic growth, Commerce and Industry Minister Piyush Goyal has said no power on earth can stop India from becoming a developed nation by 2047, with the government taking a series of initiatives to promote the domestic economy, build infrastructure and expand international trade. He also said currently, the world looks upon India with trust and confidence as the country guarantees high-quality talent, skill, goods and services, and a commitment to timely delivery. He added from being a participant to now being a principal architect of the fintech world, India leads global initiatives. On India's export performance, he said the growth in outward shipments (goods and services combined) is estimated at 4-5 per cent. 

Outlook for the coming week

Key gauges ended higher on yet another week as World Bank in its South Asia Development Update raised India’s growth forecast to 6.5 percent for FY26 from its earlier projection of 6.3 percent in June.

In economic releases, traders will be eyeing the India’s inflation data, slated to be released on October 13. Wholesale Price Index (WPI) data is scheduled to be release on October 14. Unemployment Rate and Balance of Trade data are going to be out on October 15. 

Investors will also keep eye on some important quarterly numbers to be released during next week. HCL Technologies, Tech Mahindra, Axis Bank, L&T Finance, Tata Communications, Infosys, LTIMindtree, Mastek, Nestle India, Wipro, JSW Steel, L&T Technology Services, HDFC Bank, ICICI Bank, UltraTech Cement would report their earnings in the coming week.

On the global front, investors would be eyeing few economic data from world’s largest economy, United States (US), starting with Redbook YoY on October 14 followed by U.S inflation data and NY Empire State Manufacturing Index on October 15, Producer Price Inflation on October 16, Industrial Production and Baker Hughes Oil Rig Count on October 17.

Top Gainers 

  • Max Healthcare Institute up by 8.16% was the top gainer on Nifty for the week - Shares of hospital chains traded higher after the government announced revised rates under the Central Government Health Services Scheme (CGHS) for nearly 2,000 medical procedures. The new rates will be applicable from October 13. This is the biggest revision in 15 years and aims to make cashless healthcare easier and more accessible for beneficiaries.
  • HCL Technologies (HCLTech) up by 7.32% was another top gainer on Nifty for the week - HCLTech has joined the MIT Media Lab, a world-renowned research and innovation ecosystem at the Massachusetts Institute of Technology (MIT) that brings together pioneering research and forward-thinking enterprises. This new engagement reflects HCLTech’s ongoing commitment to shaping the future of AI and accelerating breakthroughs in emerging technology areas.

Top Losers 

  • Tata Motors down by 5.19% was the top loser of the week on Nifty - Tata Motors’ wholly owned subsidiary -- JLR has registered 24.2% fall in Wholesale volumes of 66,165 units in Q2FY26 (excluding the Chery Jaguar Land Rover China JV (CJLR)) as compared to Q2FY25 and down 24.2% compared to Q1FY26. The overall mix of Range Rover, Range Rover Sport and Defender models was 76.7% of total wholesale volumes in Q2 FY26, down from 77.2% in the prior quarter.
  • Trent down by 2.59% was another top loser of the week on Nifty - Trent came under pressure amid signs of a slowdown as it reported a softer revenue growth for the September quarter. In its update for Q2FY26, the company reported standalone revenue from sale of products at Rs 5002 crore as compared to Rs 4260 crore for Q2FY25, a growth of 17%. Despite these numbers, private brokerages flagged signs of moderation in the company’s growth trajectory.

Technical viewpoints

During the week, CNX Nifty touched the highest level of 25,330.75 on October 10 and lowest level of 24,747.55 on October 6. On the last trading day, the Nifty closed at 25,285.35 with weekly gain of 391.10 points or 1.57 percent. For the coming week, 24,911.68 followed by 24,538.02 are likely to be good support levels for the Nifty, while the index may face resistance at 25,494.88 and further at 25,704.42 levels.

US Market

The U.S. markets traded mostly higher during the week as traders continued to shrug off concerns about the economic impact of the ongoing government shutdown, which entered its ninth day with no end in sight.

Some of the major developments during the week are:

U.S. mortgage applications fall for second week: The market composite index, a measure of the house purchase mortgage loan application volume, fell a seasonally adjusted 4.7% in the week ended October 3 after a 12.7% slump in the previous week.

Barr urges caution with further rate move: Fed governor Michael Barr said that the central bank should proceed carefully with further adjustments to its policy stance.

Lawmakers in U.S. continue to struggle to pass temporary funding bill:  Lawmakers in Washington continue to struggle to pass a temporary funding bill due in part to Democrats' demands.

Federal Reserve releases minutes of September meeting: The minutes revealed that most participants observed it was appropriate to lower rates toward a more neutral setting because downside risks to employment had increased. 

Thirty-year bond auction attracts average demand: The Treasury Department revealed this month's sale of $22 billion worth of thirty-year bonds attracted average demand. The thirty-year bond auction drew a high yield of 4.734 percent.

European Market

European markets ended the passing week on a mixed note, weighed down by concerns about the political situation in France, and a lack of significant data.

Some of the major developments during the week are:

Italy industrial output falls most in 8 months: The statistical office ISTAT reported that industrial output contracted 2.4 percent month-on-month in August, in contrast to the 0.4 percent increase in July. The expected fall was 0.4 percent.

German factory orders log unexpected decline: The statistical office Destatis reported that manufacturing orders decreased 0.8 percent on a monthly basis in August, following a 2.7 percent decrease in July. 

Norway industrial production grows 1.3%: The data from Statistics Norway showed that industrial production rose a seasonally adjusted 1.3 percent month-on-month in August, faster than the 0.4 percent increase in July.

German exports fall on weak US demand: The Destatis said that exports dropped 0.5 percent in August from July, following a decline of 0.2 percent in July. The drop came in contrast to the expectations for an increase of 0.3 percent.

French trade gap narrows in August:  The data released by the customs office showed that the trade deficit dropped to EUR 5.53 billion in August from EUR 5.74 billion in July. The expected shortfall was EUR 5.2 billion.

Asian Market

Asian markets traded mostly higher during the week as traders have reinforced bets on an additional rate cut by the U.S. Fed this October amid the ongoing government shutdown in the U.S.

Some of the major developments during the week are:

Japan producer prices add 0.3% on month in September: Producer prices in Japan were up 0.3 percent on month in September. That exceeded expectations for an increase of 0.1 percent following the 0.2 percent contraction in August.

Japan bank lending climbs 3.8% on year in September: The value of overall bank lending in Japan was up 3.8 percent on year in September- coming in at 647.891 trillion yen. That beat forecasts for an increase of 3.7 percent.

Japan logs current account surplus in August: Japan posted a current account surplus of 3.776 trillion yen in August- down 4.8 percent on year. That beat forecasts for a surplus of 3.540 trillion yen and was up from 2.684 trillion yen in July.

Japan household spending grows most in 3 months: Household spending in Japan increased by 2.3 percent y-o-y in August 2025, exceeding market consensus of 1.2 percent and accelerating from a 1.4 percent growth in the previous month.  

Japan's real wages fall in August: Japan’s real wages dropped by 1.4 percent in August from a year earlier, marking the eighth straight monthly decline as inflation continued to outpace income growth.
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