Benchmark equity indices recorded gains of up to 0.56% during the week, marking their third consecutive weekly rise, supported by multiple positive developments on both domestic and global fronts.
Domestic Strength Meets Global Optimism
Strong Q3FY2026 earnings expectations, the possibility of a rate cut by the Reserve Bank of India in the December policy, and positive progress in India–US trade discussions aided sentiment. Globally, easing geopolitical tensions—amid optimism over a possible end to the Russia–Ukraine war—and expectations of a December rate cut by the US Federal Reserve also boosted market confidence.
On a monthly basis as well, the indices logged gains of up to 2.11% in November, marking their third straight month of advances.
A day after hitting a lifetime high, the Sensex ended almost flat on Friday, slipping 13.71 points or 0.02% to 85,706.67 as investors booked profits at higher levels. On Wednesday, the index had surged over 1,000 points, and on Thursday it touched a fresh intraday lifetime high of 86,055.86.
The Nifty declined 12.60 points or 0.05%, closing at 26,202.95. In the previous session, it had touched a record intraday high of 26,310.45.
Both the Sensex and Nifty delivered weekly gains of 0.56% and 0.52%, respectively, and rose 2.11% and 1.87%, respectively, during the month.
“Indian equities navigated a highly eventful week characterised by alternating phases of volatility and resilience, ultimately closing on a positive note. Benchmark indices briefly scaled record highs before witnessing profit booking at elevated levels,” said Vinod Nair, Head of Research, Geojit Financial Services.
Despite early pressure from a weakening rupee and continued FII outflows, sentiment improved mid-week as strong domestic inflows and growing confidence in forthcoming Fed policy easing revived buying interest, leading to a broad-based market rebound, he added.
Domestically, the stronger-than-expected Q2 GDP print—driven by resilient manufacturing, robust construction activity and healthy private consumption—is expected to support market sentiment in the near term, Nair noted.
“The Nifty extended its winning streak for the third straight week, closing at new all-time highs on a weekly basis. Some profit-taking at higher levels, however, dragged the index toward 26,200, resulting in a small-bodied bearish candle on the daily chart,” said Nilesh Jain, Head – Technical and Derivatives Research, Centrum Broking.
He added that the 21-DMA support at 25,890 remains crucial. As long as Nifty sustains above this level, the broader uptrend and upside momentum are likely to continue. Meanwhile, the volatility index (VIX) fell 15% this week to around 11.60, offering additional comfort to the bulls.
In the broader market, the BSE Midcap and BSE Smallcap indices rose 1.19% and 0.08%, respectively, during the week. On a monthly basis, the Midcap index gained 0.35%, while the Smallcap index declined 3.38%.
Investor wealth increased by Rs 2.14 lakh crore during the week and by Rs 4.09 lakh crore during the month.
DII Buying Offsets FII Outflows
Foreign portfolio investors sold shares worth $240.8 million (Rs 2,155 crore) during the week, while their net buying for the full month stood at just $6 million (Rs 26.41 crore).
Domestic institutional investors purchased shares worth Rs 22,763 crore during the week and Rs 77,084 crore during November. Their cumulative equity investments crossed the Rs 7 lakh crore mark for the first time during the week.
On Friday, FPIs sold shares worth Rs 3,796 crore while DIIs bought shares worth Rs 4,148 crore, according to provisional BSE data.
Sectorally, metal, financial services, banking, IT, and services indices led the gains during the week, rising up to 1.49%. Oil & gas, telecom, energy, utilities and power indices were the top laggards, falling up to 1.50%.
On a monthly basis, TECK, IT, auto, banking and telecom outperformed, gaining up to 4%, while utilities, realty, power, commodities and metals declined up to 5.57%.
