The sharp rise in the Indian stock market lost some momentum last week as investors booked profits and fluctuations in crude oil prices affected sentiment. However, continued buying by foreign institutional investors (FIIs) and encouraging corporate earnings helped the benchmark indices end the week in positive territory.
The rally on Dalal Street paused on Friday, November 13, with the Sensex and Nifty falling by up to 0.6%. Renewed activity in global AI-related stocks and concerns over other economic factors weighed on investor confidence.
The Sensex declined 319 points to close at 81,592, while the Nifty 50 shed over 155 points to settle at 25,144. The decline followed gains in both indices for 10 consecutive trading sessions, excluding the brief Muhurat Trading session on Sunday, which generally witnesses low trading volumes.
Investors will closely monitor four major developments in the coming week.
FII buying
Foreign investors have continued to show confidence in Indian equities, remaining net buyers for the tenth consecutive session on Friday. According to provisional NSE data, they purchased shares worth Rs 5,736.55 crore that day. Their total net purchases during the ongoing buying streak, which began in late October, have reached nearly Rs 89,515 crore.
This turnaround comes after FIIs sold Indian equities worth a record Rs 2.95 lakh crore during the first 10 months of 2026, putting pressure on the domestic market. Investors will watch whether foreign inflows continue in the coming sessions.
Oil prices
Developments in the Middle East continue to influence crude oil prices. US President Donald Trump said last week that he believed the war in Iran was effectively over, offering some relief to global markets and initially pushing oil prices lower.
However, fresh attacks on Saudi Arabia’s energy infrastructure and disruptions to shipping through the Strait of Hormuz raised concerns about global oil supplies. These developments led to a recovery in crude prices, with Brent crude trading close to $96 per barrel.
Nvidia results
The technology sector will also be in focus ahead of Nvidia’s quarterly earnings announcement, scheduled for Tuesday, November 17. The company has recently faced controversy following reports concerning its chief executive, Jensen Huang, and allegations involving a business executive reportedly linked to Chinese intelligence. Nvidia has initiated an investigation into the claims.
The controversy has affected investor sentiment towards the company’s shares, with billions of dollars wiped off its market value. Its earnings announcement could influence global sentiment towards artificial intelligence stocks. Any major movement in the AI sector could also affect Indian equities, which some investors view as having an advantage amid concerns about AI-led disruption.
Rate outlook
Expectations of a possible interest rate increase by the Reserve Bank of India (RBI) could influence market sentiment this week, according to Vinod Nair, Head of Research at Geojit Investments.
India’s retail inflation rose to 6.09% in October from 5.54% in September, according to data released by the Ministry of Statistics and Programme Implementation. This was the twelfth consecutive month of rising consumer prices and took inflation above the RBI’s prescribed tolerance band of 2-6%.
The higher inflation figure has strengthened expectations of an interest rate increase at the RBI’s December policy meeting. While several economists expect a 25-basis-point hike, some believe a larger increase of 50 basis points cannot be ruled out.
Market outlook
Indian equities moved within a narrow range during the holiday-shortened week after their recent strong rally, but managed to retain a positive bias. Nair said steady foreign investment and better-than-expected second-quarter earnings supported the market despite intermittent profit booking. The earnings performance has also raised hopes of upward revisions to FY27 estimates.
Inflation emerged as a major concern during the week. Higher-than-expected US consumer inflation strengthened expectations of a possible Federal Reserve rate increase in December. Comments from Fed officials also pushed global bond yields higher. In India, rising food prices drove retail inflation to a two-year high, taking it beyond the RBI’s upper tolerance limit. Concerns over tighter monetary policy brought the market’s three-session winning streak to an end towards the close of the week.
Despite the subdued performance of the benchmark indices, investor interest remained healthy in the broader market. Mid-cap and small-cap stocks performed better, while investors shifted funds from defensive pharmaceutical stocks towards banking, financial services, automobiles and real estate.
Foreign investors showed a preference for large-cap financial stocks rather than buying across the broader market. Information technology stocks remained under pressure due to a stronger rupee and expectations of higher global interest rates for a longer period. Metal stocks also underperformed, while banks, real estate and automobile shares faced selling towards the end of the week.
Geojit Investments expects the market to consolidate in the near term, with investors remaining cautious. Nair advised investors to be selective, focus on large-cap companies with strong earnings prospects and use market declines as opportunities to build positions.
