As the second quarter earnings season nears its end, market watchers are turning their attention to crucial domestic indicators. Services PMI, infrastructure output data, and political developments will shape investor sentiment. These factors are expected to drive market trends in the coming days.
Globally, key U.S. economic releases will influence the market mood. The minutes from the latest FOMC meeting will be closely analyzed for policy cues. International events continue to play a significant role in shaping investment strategies.
Volatility in AI-linked stocks remains a key factor to watch. This sector’s fluctuations could influence broader market sentiment. Investors should monitor these movements carefully.
Last week, domestic indices staged a strong rebound. They ended firmly in the green after a recent phase of weakness. This recovery signals renewed confidence among market participants.
Despite some volatility in later sessions, sentiment remained positive from the beginning. Conflicting global developments caused temporary fluctuations. However, domestic cues provided consistent support.
India’s retail inflation dropped sharply to 0.25 percent in October. This decline from 1.44 percent in September boosted investor confidence. Lower GST rates and falling food prices contributed to this improvement.
Wholesale inflation also fell into negative territory. It declined by 1.21 percent in October. Softer crude oil prices and lower non-food item costs drove this decrease.
Strong macro indicators provided additional support. Net direct tax collections rose 7 percent year-over-year. This growth reflects healthy corporate profitability and steady income growth.
Political sentiment received a boost from election expectations. The NDA’s anticipated win in Bihar elections increased risk appetite. This political stability contributed to positive market sentiment.
Benchmark indices gained over one and a half percent. The Nifty closed at 25,910.05 while the Sensex settled at 84,562.78. These gains demonstrate the market’s positive response to recent developments.
IT, pharmaceutical, and auto stocks led the recovery. Sectoral performance remained generally positive across most industries. Declining inflation and steady demand patterns supported this broad-based improvement.
The banking index set a new record high. This achievement marked one of the week’s major highlights. Financial stocks showed remarkable strength during this period.
Real estate was the only sector to finish slightly lower. This minor decline likely resulted from profit booking. The sector had experienced a robust run-up in previous sessions.
India VIX dropped 4.94 percent over the week. It closed at 11.9375, suggesting reduced volatility. This indicates a more stable market environment ahead.
Market sentiment appears well-supported by multiple factors. Economic indicators and political stability continue to drive positive momentum. Investors remain cautiously optimistic about future developments.