Mumbai, Aug 16 (NationPress) The BSE midcap and smallcap indices have successfully concluded a three-week downturn, while Indian benchmark indices also reversed a six-week decline, achieving a 1 percent increase this week.

The BSE midcap indices surged by 1 percent, and the BSE small-cap index climbed by 0.4 percent during the week.

More than 20 key small-cap and mid-cap stocks recorded impressive gains ranging from 9.85 percent to 54.96 percent, with the majority falling between 10-20 percent.

This week’s gains were influenced by favorable inflation data from both the US and India, earnings that met expectations, a stronger rupee, and declining oil prices.

As the earnings for the June quarter (Q1 FY26) have been released, the revenue moderation has led to an average net profit growth on a year-over-year basis for the benchmark Nifty 50 companies (excluding financials and oil and gas) remaining in the mid-single digits.

Despite this, the Nifty50 Q1 FY26 earnings aligned with market forecasts. The overall performance during the quarter was mixed, as analysts noted that the anticipated recovery from urban demand has yet to gain traction.

Most sectoral indices exhibited positive movement this week, with the Pharma and Healthcare sectors leading, both showing gains of over 3 percent. Profit-taking occurred in certain FMCG, pharmaceutical, and consumer durable stocks.

On the final trading day of the week, foreign institutional investors (FIIs) net sold equity shares worth Rs 1,926 crore, having purchased stocks valued at Rs 13,646 crore but sold off shares worth Rs 15,572 crore. Conversely, domestic institutional investors (DIIs) net bought equities worth Rs 3,895 crore.

Analysts pointed out that the benign domestic inflation is currently at an eight-year low, raising hopes for a resurgence in discretionary spending. Additionally, S&P’s upgrade of India’s sovereign credit rating to BBB is anticipated to enhance investor sentiment and support long-term growth.

Moreover, S&P Global Ratings has upgraded the long-term issuer credit ratings of seven Indian banks and three non-banking financial companies (NBFCs), which include State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, Union Bank of India, Indian Bank, and Kotak Mahindra Bank, as well as NBFCs like Bajaj Finance, Tata Capital, and L&T Finance.