The Nifty 50 closed on Friday 16 October at 23,146.15, up 625.70 points, or 2.78%, on the week. The Sensex rose 2,256.94 points, or 3.11%, to 74,729.27. It was the second rising week in a row after eight falling ones, and the Nifty’s best week since early April.
If you looked at your own portfolio this weekend and felt it had a quieter week than that, you may well be right. This week is a good example of why the index on the news and the portfolio in your statement can tell different stories.
One sector did most of the work
Nifty IT rose about 11.7% in five sessions, reported as its largest weekly gain since April 2008. The trigger was September-quarter results. HCLTech reported a net profit of ₹5,132 crore, up 21.2%, and raised the lower end of its growth guidance for the year. Tech Mahindra’s profit rose 32.7% to ₹1,585.6 crore and it reported $1.02 billion of new deals. TCS and Infosys rose too.
Technology companies carry a large weight in the Nifty 50 and the Sensex, so a move of that size in one sector lifts the headline index a long way. Elsewhere the week was quiet. The Nifty Midcap 150 rose 0.62% and the Smallcap 250 0.36%. FMCG and healthcare indices finished slightly lower, and Bank Nifty ended close to where it started.
A 2.78% week for the Nifty and a 0.36% week for small caps are two different weeks. Most diversified portfolios lived somewhere between them.
Why this matters for how you read the news
When a rally is broad, most shares rise together and most portfolios feel it. When it is narrow, a few large companies move the index and everything else stands still. Neither tells you what happens next. But a narrow rally is a reminder that the index is one portfolio among many, weighted towards the largest companies, and yours is probably built differently.
The same was true on the way down. Over the eight falling weeks, mid and small-cap funds and large-cap funds did not fall by the same amount either. The useful habit is to judge your portfolio against what it is meant to do, not against the number on the evening news.
The rest of the week was less comfortable
Wholesale inflation rose to 11.39% in September, from 9.92%, with fuel and power prices up 25.9% as Brent crude stayed near $105 a barrel. Retail inflation was 5.54%, above the 5.2% the RBI projected for the year when it raised the repo rate to 5.50% on 7 October. The RBI has said its next move is a rise or a pause. Foreign investors sold a net ₹8,989 crore of Indian shares over the week, on four of the five days; domestic institutions bought ₹7,812 crore. The one bright spot was the rupee, which had its best week since March, ending at 94.96 to the dollar.
In the United States the opposite happened to technology shares: the Nasdaq fell 4.5%, its worst week since June, on doubts about how much the heavy spending on artificial intelligence will earn. Indian IT companies were judged this week on deals and guidance, and the two markets read the same theme differently.
A note on the Jio Platforms IPO
Jio Platforms’ IPO opens on 21 October and closes on 23 October. At ₹30,213 crore it would be the largest in India’s history. The price band is ₹1,065 to ₹1,119 and the minimum application is 12 shares, ₹13,428 at the top of the band. Large IPOs attract a great deal of attention, and many investors ask whether they should pause a SIP to apply.
Our suggestion is simple. If you want to apply, use money you have set aside for that purpose, not a SIP instalment and not money meant for a goal in the next few years. In a heavily subscribed issue, retail allotment is close to a lottery. A SIP is a habit, and habits are worth more than lotteries.
What to do this week
One: nothing about your SIP needs to change. The instalment, its date and the units you already own are unaffected by a rally in IT shares or a rise in inflation.
Two: if your portfolio leans heavily towards mid and small caps, notice how differently they moved this week, and consider whether the balance still matches your goals and your comfort.
Three: keep IPO money and SIP money in separate pockets. If a loan, a near goal or the balance of your portfolio needs a second look, speak to your Relationship Manager.
Figures are from NSE, BSE, MoSPI, the Office of the Economic Adviser, company filings and market reports by HDFC Sky, 5paisa, Business Standard and the Associated Press. The full week is in Issue 33 of the Trustner Weekly Market Brief. Trustner Asset Services Pvt. Ltd. is an AMFI-registered Mutual Fund Distributor (ARN-286886) and earns commission on Regular plans; it is not a SEBI-registered investment adviser. This article is for education and is not a recommendation to buy or sell any security or scheme. Mutual fund investments are subject to market risks; read all scheme-related documents carefully.
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Ram Shah is a FPSB-certified CFP professional and founder of Trustner Asset Services (ARN-286886). With over two decades of experience in wealth management, he specializes in SIP strategies, retirement planning, and goal-based investing for Indian families.