The Indian stock markets ended their longest losing streak in 25 years, marked by eight consecutive weeks of declines. The BSE Sensex gained 0.78% to close at 72,472.33, while the Nifty 50 advanced 0.43% to settle at 22,520.45. The recovery was driven by buying in IT, FMCG, automobile, and financial stocks, despite persistent foreign fund outflows, high crude oil prices, and global bond yield concerns.
The rebound gained momentum on Friday, October 9, with the Sensex surging 1.23% and the Nifty 50 climbing 1.30%. Ajit Mishra from Religare Broking noted that the recovery was supported by easing crude oil prices and positive corporate updates, but volatility remained due to the RBI's repo rate hike to 5.50% and a shift towards calibrated tightening.
Key triggers for the coming week include US inflation data, crude oil prices, India's September CPI and WPI inflation figures, and foreign institutional investor (FII) activity. The rupee's depreciation and IT earnings reports from companies like HCL Technologies, Wipro, and Tech Mahindra will also influence market sentiment.
Market participants will watch whether the recovery can extend, with the 22,200-22,400 zone identified as a crucial support area. Holding above this region could support a recovery towards 23,000-23,300, while a break below could trigger renewed weakness. Experts advise selective trading, disciplined risk management, and prioritizing companies with resilient earnings and strong balance sheets.