Benchmark indices Sensex and Nifty rose for the second consecutive session on Friday, supported by strong buying in IT stocks, which gained for the fourth day in a row. Auto, metal and public sector bank stocks also contributed to the rally.
For Nifty, the 22,750–22,800 range remains an important support zone. A sustained move above 22,750 could help the recovery continue. On the upside, the index faces immediate resistance at 23,400–23,450. A decisive break above this range could take it towards 23,650, near its 100-day exponential moving average (EMA).
Five factors investors should track
1. Q2 earnings from major banks
Investors will assess the September-quarter results of HDFC Bank, ICICI Bank and Axis Bank, which announced their earnings on Saturday. Key areas of focus include loan growth, deposit mobilisation, margins, asset quality and management commentary on credit demand and the financial sector's outlook.
HDFC Bank, India's largest private sector lender, reported a 4.6% rise in net profit to Rs 19,510 crore in the second quarter of FY27, compared with Rs 18,641 crore in the corresponding period last year.
Its net interest income (NII), which is the difference between interest earned and interest paid, increased 9.7% to Rs 34,620 crore for the quarter ended September 30, 2026, from Rs 31,550 crore a year earlier.
2. Rising crude oil prices
Crude oil prices surged on Friday, crossing $110 a barrel for the first time since May. The rise followed intensified Iranian attacks in the Strait of Hormuz, missile launches by Houthi militants towards Saudi Arabia and Ukraine's pledge to resume attacks on Russian refineries. These developments have heightened concerns about global energy supplies.
Uncertainty over the course of the conflict continues to weigh on market sentiment. JPMorgan analysts said it remained difficult to predict how the war would unfold. The bank had initially expected the US administration to avoid crossing certain economic thresholds. However, several of these limits had been crossed seven months into the conflict, with no clear exit strategy in sight.
3. IT stocks maintain momentum
IT stocks, including TCS, Tech Mahindra, Infosys and Wipro, recorded strong gains during the week, rising by as much as 17%. Better-than-expected earnings and a sharp fall in AI-linked stocks supported the sector's performance.
The Nifty IT index is also positioned in the leading quadrant of the Relative Rotation Graph (RRG), indicating strong relative strength and momentum.
According to Sudeep Shah of SBI Securities, the index is close to breaking its pattern of lower highs and lower lows on the daily chart. The 32,000–32,200 range is the immediate resistance zone. A sustained move above this level could extend the ongoing recovery in the near term.
4. Foreign investor selling slows
Foreign institutional investors (FIIs) remained net sellers for the ninth consecutive week. However, their net outflows declined sharply to Rs 8,991 crore from Rs 30,294 crore in the previous week, according to Bajaj Broking. FIIs turned net buyers on Friday, purchasing shares worth Rs 1,166 crore.
Domestic institutional investors (DIIs) continued to support the market, recording net inflows of Rs 7,813 crore for the ninth straight week, despite selling shares worth Rs 3,661 crore on Friday.
For the month so far, DII net purchases of Rs 48,168 crore have almost completely offset FII net sales of Rs 48,769 crore.
Pabitro Mukherjee of Bajaj Broking said the reduction in foreign investor outflows indicated that market sentiment could be stabilising. However, high crude oil prices remain a concern. Investors will monitor Brent crude prices, developments in US-Iran relations and domestic second-quarter earnings.
5. Rupee records strongest weekly gain in seven months
The Indian rupee gained 2% during the week, marking its strongest weekly rise in seven months. Policy measures aimed at stabilising the currency helped support the recovery.
The rupee closed at Rs 94.96 against the US dollar on Friday, gaining 0.1% during the session. It recovered after falling sharply the previous week towards its record low of Rs 96.96 per dollar.
However, analysts warned that the recovery may not last unless the underlying pressures on the currency ease.
Five factors investors should track
1. Q2 earnings from major banks
Investors will assess the September-quarter results of HDFC Bank, ICICI Bank and Axis Bank, which announced their earnings on Saturday. Key areas of focus include loan growth, deposit mobilisation, margins, asset quality and management commentary on credit demand and the financial sector's outlook.
HDFC Bank, India's largest private sector lender, reported a 4.6% rise in net profit to Rs 19,510 crore in the second quarter of FY27, compared with Rs 18,641 crore in the corresponding period last year.
Its net interest income (NII), which is the difference between interest earned and interest paid, increased 9.7% to Rs 34,620 crore for the quarter ended September 30, 2026, from Rs 31,550 crore a year earlier.
2. Rising crude oil prices
Crude oil prices surged on Friday, crossing $110 a barrel for the first time since May. The rise followed intensified Iranian attacks in the Strait of Hormuz, missile launches by Houthi militants towards Saudi Arabia and Ukraine's pledge to resume attacks on Russian refineries. These developments have heightened concerns about global energy supplies.
Uncertainty over the course of the conflict continues to weigh on market sentiment. JPMorgan analysts said it remained difficult to predict how the war would unfold. The bank had initially expected the US administration to avoid crossing certain economic thresholds. However, several of these limits had been crossed seven months into the conflict, with no clear exit strategy in sight.
3. IT stocks maintain momentum
IT stocks, including TCS, Tech Mahindra, Infosys and Wipro, recorded strong gains during the week, rising by as much as 17%. Better-than-expected earnings and a sharp fall in AI-linked stocks supported the sector's performance.
The Nifty IT index is also positioned in the leading quadrant of the Relative Rotation Graph (RRG), indicating strong relative strength and momentum.
According to Sudeep Shah of SBI Securities, the index is close to breaking its pattern of lower highs and lower lows on the daily chart. The 32,000–32,200 range is the immediate resistance zone. A sustained move above this level could extend the ongoing recovery in the near term.
4. Foreign investor selling slows
Foreign institutional investors (FIIs) remained net sellers for the ninth consecutive week. However, their net outflows declined sharply to Rs 8,991 crore from Rs 30,294 crore in the previous week, according to Bajaj Broking. FIIs turned net buyers on Friday, purchasing shares worth Rs 1,166 crore.
Domestic institutional investors (DIIs) continued to support the market, recording net inflows of Rs 7,813 crore for the ninth straight week, despite selling shares worth Rs 3,661 crore on Friday.
For the month so far, DII net purchases of Rs 48,168 crore have almost completely offset FII net sales of Rs 48,769 crore.
Pabitro Mukherjee of Bajaj Broking said the reduction in foreign investor outflows indicated that market sentiment could be stabilising. However, high crude oil prices remain a concern. Investors will monitor Brent crude prices, developments in US-Iran relations and domestic second-quarter earnings.
5. Rupee records strongest weekly gain in seven months
The Indian rupee gained 2% during the week, marking its strongest weekly rise in seven months. Policy measures aimed at stabilising the currency helped support the recovery.
The rupee closed at Rs 94.96 against the US dollar on Friday, gaining 0.1% during the session. It recovered after falling sharply the previous week towards its record low of Rs 96.96 per dollar.
However, analysts warned that the recovery may not last unless the underlying pressures on the currency ease.
