Will Nifty and Sensex Maintain Their Rally This Week?
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Synopsis
Indian equity indices Nifty and Sensex have shown remarkable resilience, posting gains for the second consecutive week. With strong Q2 earnings and easing inflation, will this trend continue despite FII outflows? Investors are watching closely as market dynamics shift.
Key Takeaways
- Nifty rose by 0.68% and Sensex by 0.50% this week.
- Broader indices, including Nifty Midcap100 and Smallcap100, underperformed.
- IT stocks were the biggest gainers despite overall weakness in US tech shares.
- Market volatility increased amid unfavorable global signals.
- Watch for upcoming economic indicators for market direction.
Mumbai, Nov 22 (NationPress) The Indian equity markets have recorded slight gains for the second consecutive week, bolstered by robust second quarter (Q2) earnings, a decline in inflation, and positive sentiment surrounding the India-US trade discussions.
The benchmark indices, Nifty and Sensex, rose by 0.68% and 0.50% respectively during the week, concluding at 26,068 and 85,231.
Experts noted that a decrease in foreign institutional investor (FII) selling, driven by anticipated earnings upgrades in the second half of FY26, has also contributed to the ongoing rally. However, on Friday, market volatility increased amid unfavorable global signals. The Nifty index retraced after failing to surpass its previous all-time high of 26,277, ending its two-day upward trend.
Broader market indices lagged behind, as the Nifty Midcap100 and Smallcap100 indices closed lower by 0.76% and 2.2% respectively.
Despite experiencing selling pressure due to weaknesses in US technology shares, IT stocks emerged as the top weekly performers. The Nifty Auto and Services sectors followed as notable gainers. Conversely, metals and real estate sectors faced significant declines on Friday, each dropping over 2%, along with PSU banks, financial services, and media sectors.
Better-than-expected US non-farm payrolls have dampened expectations for a rate cut by the US Federal Reserve in December, adding pressure on global equity markets. Consequently, gold prices also faced selling pressure, and the Indian Rupee hit a new low.
Oil prices fell following the US's renewed effort for a peace proposal regarding the Russia-Ukraine conflict.
Vinod Nair, Head of Research at Geojit Investments Limited, stated, "The market could see some profit-taking in the short term if the pressure on the Indian Rupee continues. In the upcoming week, investors should keep a close watch on trade developments and economic indicators such as the Index of Industrial Production (IIP) and Q2 FY26 GDP data to gauge market direction."
Analysts are optimistic that the market will remain robust next week, supported by buying on dips, an improving outlook for demand in Q3, and steady inflows.
Point of View
The ongoing gains in Indian equity benchmarks reflect underlying economic strengths, such as robust corporate earnings and improving inflation metrics. However, the potential volatility due to global cues and FII movements warrants close attention. A balanced approach to investing remains prudent as market sentiments evolve.
NationPress
22/11/2025
Frequently Asked Questions
What are the current trends in the Indian stock market?
The Indian stock market is currently experiencing a rally, with benchmarks like Nifty and Sensex showing gains driven by strong corporate earnings and positive economic indicators.
How have foreign institutional investors impacted the market?
While foreign institutional investors have shown some selling pressure, expectations of earnings upgrades in the second half of the fiscal year have moderated this impact.
What sectors are performing well in the current market?
IT stocks have emerged as key gainers despite some selling pressure, with Nifty Auto and Services also showing positive trends.
What economic indicators should investors watch?
Investors should closely monitor trade developments, the Index of Industrial Production, and Q2 FY26 GDP data for insights into market direction.
Is there a risk of profit booking in the near term?
Yes, there may be profit booking in the short term if pressure on the Indian Rupee continues. Investors should stay alert to market fluctuations.
