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Bargain hunting, IT stocks rally help markets snap eight-week losing streak
Oct-09-2026

Indian equity markets snapped their eight-week losing streak and ended higher in the passing week, supported by bargain hunting following the recent sell-off. IT stocks rallied amid reports that OpenAI was slowing its revenue growth. Easing crude oil prices also supported market sentiment. However, persistent foreign fund outflows capped the market's upside.

Some of the major developments during the week are:

Indian economy seen growing 7.3% in Q2FY27: The Finance Ministry, in its September edition of the Monthly Economic Review, said the Indian economy is estimated to have grown by 7.3% in the September quarter (Q2) of FY27, though at a slower pace than the 7.8% growth recorded in the June quarter.

India’s services sector strengthens in September on improving demand conditions: The seasonally adjusted HSBC India Services PMI Business Activity Index rose to 55.2 in September from 54.1 in August. the HSBC India Composite PMI Output Index also increased from 54.3 in August to 55.9 in September.

World Bank raises India’s economic growth forecast to 7.1% for FY27: The World Bank in its October economic update has raised India’s economic growth forecast to 7.1 per cent for FY27 from 6.6 per cent forecasted in April, supported by robust domestic demand and strong exports, despite global headwinds.

RBI hikes repo rate by 25 bps to 5.5% amid rising inflation, West Asia crisis: The RBI Monetary Policy Committee unanimously decided to increase the policy repo rate under the liquidity adjustment facility by 25 bps to 5.50 per cent, in a bid to tame rising inflation amid continuing West Asia crisis.

Crisil Intelligence sees India Inc revenue growth moderating to 16-16.5% in Q2FY27: Crisil Intelligence, the research arm of rating agency Crisil, has estimated that India Inc’s revenue will grow 16-16.5% Y-o-Y in the second quarter of the current fiscal (Q2FY27), moderating from 17.4% in Q2FY26.

BSE movement for the week

The Bombay Stock Exchange (BSE) Sensex surged 562.63 points or 0.78% to 72,472.33 during the week ended October 09, 2026. On the sectoral front, S&P BSE Fast Moving Consumer Goods was up by 405.07 points or 2.43% to 17,056.35, S&P BSE TECK was up by 263.17 points or 1.84% to 14,546.40 and S&P BSE BANKEX was up by 803.06 points or 1.31% to 62,159.19 were the top gainers, while S&P BSE Realty was down by 274.53 points or 4.19% to 6,279.79, S&P BSE Metal was down by 1,655.08 points or 4.18% to 37,979.25 and S&P BSE Power was down by 158.70 points or 2.22% to 6,986.28 were the top loser on the BSE.

NSE movement for the week

The Nifty surged 98.50 points or 0.44% to 22,520.45. On the National Stock Exchange (NSE), Bank Nifty was up by 805.90 points or 1.48% to 55,256.65, Nifty IT was up by 270.20 points or 0.95% to 28,574.90, and Nifty Mid Cap 100 increased 55.30 points or 0.09% to 58,787.30, while Nifty Next 50 lost 814.65 points or 1.18% to 68,166.70.

FII transactions during the week

Foreign Institutional Investors (FIIs) were net sellers in equity segment in the week, with gross purchases of Rs 72,137.41 crore and gross sales of Rs 107,071.25 crore, leading to a net outflow of Rs 34,933.84 crore. They also stood as net buyers in the debt segment with gross purchases of Rs 13,261.21 crore against gross sales of Rs 10,487.91 crore, resulting in a net inflow of Rs 2,773.30 crore. In hybrid segment, FIIs stood as net sellers, with gross purchases of Rs 88.15 crore and gross sales of Rs 166.45 crore, leading to a net outflow of Rs 78.30 crore.

Industry and Economy

The Federation of Indian Chambers of Commerce & Industry (FICCI) in its latest edition of Manufacturing Survey has said that India's manufacturing sentiment improved in the July-September quarter of fiscal year 2026-27 (Q2FY27) as factories reported higher capacity utilisation and higher or same levels of production as compared to the previous quarter. The survey, which covered around 225 firms, assessed the performance and sentiment of manufacturers for nine major sectors -- namely automotive & auto components, capital goods, chemicals and allied products, electronics & electricals, glass, machine tools, metal & metal products, textiles, apparels & technical textiles and miscellaneous.

Outlook for the coming week

Benchmarks ended higher in the passing week on buying at lower levels after recent fall. Easing crude oil prices and bond yields also aided sentiments.

In the coming week, traders will be eyeing India’s retail inflation data slated to be released on October 12. Besides, wholesale inflation data is going to be out on October 14. Unemployment Rate and Balance of Trade data are to be released on October 15. Bank Loan & Deposit growth and Foreign Exchange Reserves data are going to be out on October 16.

Investors will also keep eye on some important quarterly numbers to be released during next week. Meanwhile, finance ministry will begin month-long series of pre-budget meetings from October 12 as part of Union Budget 2027-28 preparations. Besides, Canada's Minister of International Trade is scheduled to lead Team Canada Trade Mission to India from October 12 to 17, 2026.

On the global front, investors would be eyeing economic data from United States (US) starting with ADP Employment, Monthly Budget Statement on October 13, followed by Core Inflation Rate, Redbook on October 14, API Crude Oil Stock, Producer prices, Initial Jobless Claims on October 15, Export & Import data, Industrial Production on October 16.

Top Gainers 

  • Trent up by 13.11% was the top gainer on Nifty for the week - Shares of Trent caught investors’ attention after reporting 23% growth in its standalone revenue from operations at Rs 5,788 crore (excluding GST) in Q2FY27 as compared with Rs 4,724 crore (excluding GST) in Q2FY26. During the quarter, the company has opened 10 stores of Westside and 17 stores of Zudio. 
  • BSE up by 7.92% was another top gainer on Nifty for the week - BSE, along with other capital markets stocks, traded higher amid private reports indicating the market regulator SEBI is considering to stop using closing auctions to calculate derivatives settlement prices.

Top Losers 

  • Adani Enterprises down by 6.48% was the top loser of the week on Nifty - Shares of Adani Enterprises came under pressure, along with other Adani Group stocks, amid concerns over a potential stake sale by GQG Partners. Reports suggested that GQG Partners had been reducing its holdings in Adani Group companies, with its recent transactions reinforcing concerns about a possible exit from its long-held investments in Indian firms.
  • Max Healthcare Institute down by 6.07% was another top loser of the week on Nifty - Max Healthcare Institute faced selling pressure, along with other hospital stocks, after government approved a 30% cap on margins charged on the supply and sale of non-scheduled anti-cancer medicines.

Technical viewpoints

During the week, Nifty touched the highest level of 22,776.10 on October 6 and lowest level of 22,179.90 on October 8. On the last trading day, the Nifty closed at 22,520.45 with weekly gain of 98.50 points or 0.44 percent. For the coming week, 22,208.20 followed by 21,895.95 are likely to be good support levels for the Nifty, while the index may face resistance at 22,804.40 and further at 23,088.35 levels.

US Market

The US markets traded higher during the week as enthusiasm around artificial intelligence (AI) and expectations of robust corporate earnings supported technology stocks. However, gains remained limited amid volatile crude oil prices and US treasury yields.

Some of the major developments during the week are:  

US services activity surges to 58.8 in September: the US service sector activity accelerated sharply in September, with S&P Global services PMI jumping to 58.8 and composite PMI rising to 58.4, both marking strongest expansions in over five years.

US trade deficit widens to 17-month high: The US trade deficit widened to $105.6 billion in August 2026 from a revised $92.8 billion in July, exceeding market expectations of $102.0 billion and marking its largest gap since March 2025.

US exports rise, while imports hit fresh record high: US exports increased $4.5 billion to $315.2 billion in August 2026. US imports surged $17.2 billion to an all-time high of $420.8 billion in August 2026.

US initial jobless claims at over 2-month low: The number of people claiming unemployment benefits fell by 2,000 to 197,000 in the week ending October 3, 2026, coming in below market expectations of 200,000.

US wholesale inventories growth lower than expected: US wholesale inventories rose 0.5% month-on-month to $964.2 billion in August 2026, below the 0.7% in the advance estimate and following a upwardly revised 1.4% increase in July.

European Market

European markets traded lower during the week amid worries over rising borrowing costs and political instability in France. Also, traded were concerned amid tensions Middle East and rise in US bond yields.

Some of the major developments during the week are:

France trade gap narrows: France’s trade deficit narrowed to 6.1 billion euro in August 2026 from a revised 6.6 billion euro in July. Exports fell 0.8% to 54.2 billion euro, imports fell 1.5% to 60.3 billion euro.

German industrial output rises most in 17 months: Germany’s industrial production rose 2.0% month-on-month in August 2026, exceeding market forecasts for a 0.5% increase and rebounding from a revised 1.2% drop in July.

France industrial output surprisingly falls: Industrial production in France fell 0.3% month-on-month in August 2026, defying expectations for a 0.3% rise and following a 0.6% decline in July.

UK Manufacturing Growth Rises in September: The S&P Global UK Manufacturing PMI rose to 51.9 in September 2026, up from 51.7 in August and broadly in line with the preliminary estimate and market expectations.

Eurozone services activity growth strongest in 10 months: The S&P Global Eurozone Services PMI rose to 53.0 in September 2026 from 51.6 in August, in line with preliminary estimates and marking the strongest reading since November 2025.

Asian Market

Asian markets, barring Nikkei composite index, traded lower during week as market participant weighed the renewed concerns over artificial intelligence (AI) boom and elevated borrowing costs against ease in crude oil prices.

Some of the major developments during the week are:

Japan consumer confidence falls slightly in September: Japan's consumer confidence index edged down to 35.4 in September 2026 from August’s six-month high of 35.5, slightly beating market expectations of 35.3.

Japan service sector growth moderates: Japan’s S&P Global Services PMI Business Activity Index stood at 51.3 in September 2026, down from a flash reading of 51.6 and August's 52.5. 

Taiwan inflation hits 31-month high: Taiwan’s annual inflation rate rose to 2.7% in September 2026 from 2.05% in the previous month. It marked the highest level since February 2024.

China foreign exchange reserves decline: China’s foreign exchange reserves fell to $3.4 trillion at the end of September 2026, down $38.1 billion from a month earlier.

South Korea posts current account surplus in August: South Korea posted a current account surplus of $46.11 billion in August- up from $42.08 billion in July.
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