India’s Best Week Since April, Carried by One Sector: Nifty IT +11.7% on Results While Mid and Small Caps Barely Moved; Nifty +2.78% to 23,146, Sensex +3.11% to 74,729
NeutralThe Nifty 50 rose 2.78% to 23,146.15 and the Sensex 3.11% to 74,729.27, a second straight weekly gain and the Nifty’s best since early April. Nearly all of it came from technology: Nifty IT rose about 11.7%, its largest weekly gain since April 2008, as HCLTech, Tech Mahindra and Wipro reported September-quarter results, while the Midcap 150 rose 0.62% and the Smallcap 250 0.36%. Foreign investors sold on four of five days, a net ₹8,989 crore, against domestic buying of ₹7,812 crore. Wholesale inflation rose to 11.39% and retail inflation to 5.54%, above the RBI’s projection for the year; the rupee strengthened to 94.96. In the US the Nasdaq fell 4.5%. Jio Platforms’ ₹30,213 crore IPO opens on 21 October.
Key Points This Week
- 1Nifty +2.78% to 23,146.15 and Sensex +3.11% to 74,729.27 · daily Nifty path: −157.10, +358.60, −99.25, +374.65, +148.80; every session reconciles on both indices
- 2Nifty IT about +11.7% on results · HCLTech profit ₹5,132 Cr (+21.2%), guidance floor raised to 2.5% · Tech Mahindra profit ₹1,585.6 Cr (+32.7%), $1.02bn of deals
- 3Breadth was thin: Nifty Next 50 +3.36%, Midcap 150 +0.62%, Smallcap 250 +0.36%; FMCG and healthcare slightly lower
- 4Wholesale inflation 11.39% (fuel and power 25.9%), retail 5.54% · repo 5.50% · 10-year yield 7.38% · rupee 94.96, best week since March
- 5FIIs −₹8,989 Cr, DIIs +₹7,812 Cr (NSE provisional) · Nasdaq −4.5%, S&P 500 about −1.9%, Dow +0.7% · Jio Platforms IPO 21 to 23 October
SIP Investor Advice
A 2.78% week after eight falling weeks feels like a turn, so look at what carried it. One sector rose about 11.7%, the largest companies followed, and mid and small caps moved less than one percent. Foreign investors sold on four of five days, wholesale inflation is at 11.39% and the RBI has said its next move is a rise or a pause. One good week does not settle whether the decline that began in August is over. Nothing in it calls for a change to a SIP. If your portfolio leans heavily to mid and small caps, this week shows how differently they can move from the index on the news. If you plan to apply for the Jio IPO, use money set aside for it, not SIP money or money for a near goal. Speak to your Relationship Manager if anything 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.