The Streak Ends at Eight, by 98 Points — the RBI Raised the Repo Rate to 5.50%, Thursday Fell 371 Points and Friday Recovered 289; Nifty +0.44% to 22,520, Sensex +0.78% to 72,472
NeutralThe Nifty 50 rose 0.44% to 22,520.45 and the Sensex 0.78% to 72,472.33, ending eight consecutive weekly declines. The gain was settled on Friday. Markets rose on Monday and Tuesday, fell 173 points on Wednesday when the Reserve Bank raised the repo rate by 25 basis points to 5.50% — its first increase since February 2023 — and fell a further 371.25 points on Thursday as Brent traded above $105 and foreign investors sold a net ₹12,944 crore, leaving the Nifty below the previous week’s close. Friday recovered 288.65 points after TCS’s results and a US statement that it would not strike Iran before the 3 November elections. FMCG and bank indices rose over the week while Realty and Metal fell about 3.7% each. Foreign investors sold a net ₹30,294 crore; domestic institutions bought ₹30,313 crore. The rupee ended at 96.71 and forex reserves fell a fourth week to $734.61 billion. The Nifty remains 8.34% below its 7 August close. September retail inflation is due on Monday 12 October.
Key Points This Week
- 1Nifty +0.44% to 22,520.45 and Sensex +0.78% to 72,472.33 — the first up week after eight straight falls, the Nifty’s longest losing run in 25 years; every session verified and summed to the point on both indices
- 2Daily path on the Nifty: Monday +133.80, Tuesday +220.35, Wednesday −173.05, Thursday −371.25, Friday +288.65 · Thursday’s close of 22,231.80 was below the prior week’s finish and 9.52% under the 7 August close
- 3RBI: repo rate up 25 bps to 5.50%, unanimous; stance to “calibrated tightening” by 4–2; SDF 5.25%, MSF 5.75% · FY27 CPI projected at 5.2%, GDP growth 7.1% · the Governor said the next move “can only be a rate hike or a pause”
- 4FIIs −₹30,294 Cr over five days (−₹12,944 Cr on Thursday alone), DIIs +₹30,313 Cr · India VIX 14.37 · rupee 96.71 · forex reserves −$12.95bn to $734.61bn, a fourth straight fall
- 5Week’s sectors: FMCG +2.5%, PSU Bank +2.4%, Bank +1.5%, IT +1.0%; Realty −3.7%, Metal −3.7%, Auto −2.1% · TCS Q2 revenue ₹73,188 Cr (+11.2%) · Brent $104.72 · S&P 500 +1.2% to 7,811.54 · India CPI on 12 October
SIP Investor Advice
For two weeks we have said that a losing streak is a count and that what your money experiences is a size. The same applies to its ending. The streak stopped by 98.50 points, on the strength of one Friday; on Thursday evening the week was still down. The Nifty is 8.34% below its 7 August close against 8.74% a week ago, foreign selling continued and was met by domestic buying, and the RBI has said its next move is a rise or a pause. Nobody knows whether the decline is over. A rate rise changes nothing about a SIP instalment, its date or the units already held; it does matter for floating-rate home loans and for longer-duration debt funds tied to near goals. If you did not stop a SIP after eight falling weeks, there is no reason to rush a lump sum after one rising week. Speak to your Relationship Manager if a loan or a near-term goal needs a second look.
Market data shown is illustrative/sample only. Not real-time. All information is for educational purposes and should not be construed as investment advice. Past performance does not guarantee future returns.