The market delivered a strong performance in the week ended October 16, gaining around 3 percent to register its biggest weekly rally since April and extending its uptrend for a second consecutive week after recently hitting a six-month low. The rally came despite inflation concerns and elevated oil prices. Expectations of a review of the long-term capital gains (LTCG) tax and securities transaction tax (STT), easing bond yields, and robust earnings and upbeat management commentary from IT companies lifted market sentiment.
Going forward, in the truncated trading week beginning October 19, the market is expected to witness a gradual recovery accompanied by consolidation. Investors will focus on the September-quarter earnings season (Q2FY27), the Jio Platforms IPO, China's GDP data, crude oil prices, and flash Purchasing Managers' Index (PMI) data, according to market experts.
The Nifty 50 surged 626 points, or 2.78 percent, to close at 23,146, while the BSE Sensex rallied 2,257 points, or 3.11 percent, to end at 74,729. However, broader markets underperformed the frontline indices, with the Nifty Midcap 100 rising 0.58 percent and the Nifty Smallcap 100 declining 0.12 percent.
Among sectors, the Nifty IT index emerged as the standout performer, surging 11.72 percent during the week on the back of robust earnings and upbeat management commentary. Banking, automobile, metal, and oil and gas stocks also witnessed buying interest. Conversely, healthcare, pharmaceutical, and FMCG stocks came under pressure.
"The market is expected to consolidate with a gradual recovery, although intermittent volatility may persist in broader markets," said Siddhartha Khemka, Head of Research, Wealth Management, at Motilal Oswal Financial Services.