Last Updated on November 13, 2026 5:22 pm by INDIAN AWAAZ
Markets Extend Weekly Gains Despite Friday Sell-off; Inflation, Crude Prices Pose Fresh Challenges
By Our Business Correspondent
Indian equity markets ended the week of November 9–13 on a positive note, extending their winning streak for the third consecutive week, although a sharp sell-off in the final trading session trimmed much of the gains. Strong foreign institutional investor (FII) inflows, buying in banking and financial stocks, and optimism surrounding select corporate earnings supported the benchmarks. However, rising retail inflation, higher crude oil prices, currency weakness and uncertainty over global monetary policy kept investors cautious.
For the week, the BSE Sensex gained approximately 0.7%, while the NSE Nifty 50 advanced around 0.5%, according to Reuters’ weekly market assessment. The gains came despite Friday’s decline, when the Sensex fell 318.56 points, or 0.39%, to 81,592.45, and the Nifty dropped 155.05 points, or 0.61%, to 25,144.30.
The week’s performance reflected a market caught between strong domestic liquidity support and growing macroeconomic concerns. While foreign investors continued to return to Indian equities, the inflation outlook and rising energy costs emerged as important risks for the coming weeks.
Benchmarks remain resilient amid volatility
The week began on a positive note on November 9, with the Sensex rising 107.25 points, or 0.13%, to 81,106.65, while the Nifty advanced 58.25 points, or 0.23%, to 25,044.65. Buying interest improved during the session, allowing the benchmarks to recover significantly from their intraday lows.
The market remained closed on November 10 on account of Diwali-Balipratipada, resulting in four regular trading sessions during the week.
Buying momentum strengthened on Wednesday, November 11, when the Nifty crossed 25,200 and touched a fresh nine-month high. The index closed at 25,255.05, gaining 210.40 points, or 0.84%. The Sensex surged 772.75 points, or 0.95%, to 81,879.40.
Banking and financial stocks were among the principal contributors to the rally. The Bank Nifty advanced more than 1,050 points during Wednesday’s session, approaching the 60,800 mark. PSU banks, automobile companies and select heavyweight stocks attracted buying interest.
On Thursday, the market remained relatively stable, with the Nifty gaining 44 points to close at 25,299.35, while the Sensex added 32 points. However, the rally lost momentum on Friday as concerns over inflation and global interest rates prompted investors to book profits.
The Nifty’s Friday close of 25,144.30, compared with its previous Friday close of 25,030.35, left it with a modest weekly gain of approximately 0.45%. The Sensex gained approximately 0.70% over the same period.
Inflation emerges as the biggest domestic concern
One of the most important developments during the week was the release of India’s October retail inflation data.
According to the National Statistical Office (NSO), retail inflation based on the Consumer Price Index (CPI) increased to 6.09% in October 2026, compared with 5.54% in September. This took inflation above the Reserve Bank of India’s upper tolerance limit of 6%.
Food inflation also remained elevated at 8.94% in October, adding to concerns about household purchasing power and the broader inflation outlook.
The increase in consumer prices has important implications for monetary policy. Persistently high inflation could restrict the RBI’s flexibility to ease interest rates and may even strengthen expectations of a tighter policy stance if price pressures remain elevated.
For equity investors, higher inflation can affect valuations through increased borrowing costs, reduced consumption capacity and pressure on corporate margins. Interest-rate-sensitive sectors such as real estate, automobiles and banking could remain particularly sensitive to changes in monetary policy expectations.
The inflation figures also contributed to Friday’s cautious market sentiment, as investors reassessed the possibility of interest rates remaining higher for longer.
Foreign investors provide strong support
Foreign institutional investors emerged as an important source of support for Indian equities during the week.
According to available provisional cash-market data, FIIs recorded net purchases of approximately Rs 19,776 crore across the two reported trading sessions, while domestic institutional investors (DIIs) recorded net sales of around Rs 15,607 crore.
The foreign buying trend was consistent with the broader recovery in overseas investor interest in Indian equities. Reuters reported that foreign investors had brought approximately $8 billion into Indian equities during November up to November 13, marking the strongest monthly inflows since December 2020.
Sustained foreign buying has helped improve liquidity and support benchmark valuations, particularly in large-cap banking and financial stocks.
However, continued selling by domestic institutional investors suggests that the market’s liquidity support is not entirely broad-based. Investors will watch whether foreign inflows remain strong enough to offset domestic profit-booking and any renewed global risk aversion.
Banking stocks outperform; IT sector faces pressure
Sectoral performance remained mixed, with banking and financial services emerging as important drivers of the week’s gains.
State Bank of India was among the notable outperformers, gaining approximately 6% during the week following its strong quarterly results. Select private-sector banks and PSU banking stocks also attracted buying interest.
The banking sector’s relative strength reflected optimism surrounding credit growth, asset quality and earnings prospects.
In contrast, information technology stocks came under pressure. The Nifty IT index declined approximately 3.2% during the week, ending a six-week winning streak.
Concerns about global technology spending, changing investment preferences in AI-related stocks and developments surrounding Nvidia’s leadership transition contributed to the cautious sentiment.
The divergence between banking and IT stocks highlighted a shift in investor preference towards domestic earnings visibility and sectors that may be less exposed to global technology spending uncertainties.
The broader market performed relatively well. Midcap and smallcap indices gained approximately 2.1% and 3.6%, respectively, during the week, outperforming the frontline benchmarks. In addition, 13 of the 16 major sectoral indices advanced, indicating that the weekly gains were supported by participation beyond a handful of heavyweight stocks.
Crude oil and rupee movement remain key risks
Developments in the commodity and currency markets also remained important considerations for investors.
Rising crude oil prices increased concerns about India’s import bill, inflation and the profitability of companies dependent on energy and petroleum-based inputs. As one of the world’s major oil importers, India remains vulnerable to sustained increases in international crude prices.
Higher oil prices can put pressure on the current account balance, increase fuel-related inflation and complicate the RBI’s monetary policy decisions.
The rupee’s weakness against the US dollar added another layer of uncertainty. Currency depreciation can increase costs for import-dependent businesses and affect foreign investors’ dollar-denominated returns.
While exporters in sectors such as information technology and pharmaceuticals may benefit from a weaker rupee through improved overseas earnings in domestic currency terms, the overall impact on the economy depends on the pace of depreciation and the movement of global commodity prices.
Global developments influence investor sentiment
International markets remained sensitive to US monetary policy expectations, bond yields, inflation trends and developments in the artificial intelligence industry.
The leadership transition at Nvidia attracted considerable attention, raising questions about continuity and the future direction of the global AI chip industry.
At the same time, rising US Treasury yields and concerns over inflation reduced the attractiveness of riskier assets. Any further tightening in US monetary policy could influence global capital flows and increase volatility in emerging markets, including India.
For domestic equities, global developments remain important because foreign portfolio investment, currency movements and institutional risk appetite are closely linked to international financial conditions.
Outlook: Selective buying likely amid macroeconomic uncertainty
Indian equities enter the next trading week with a cautiously positive underlying trend, supported by three consecutive weeks of benchmark gains and substantial foreign investor interest. However, the latest inflation numbers and rising crude prices warrant close monitoring.
The Nifty’s ability to sustain above the 25,000 mark will remain important for market sentiment. On the upside, investors will watch the 25,250–25,300 zone, followed by the possibility of a move towards higher resistance levels. On the downside, the 25,000 psychological level and the recent consolidation zone will be important areas to monitor.
Banking and financial stocks could continue to influence the direction of the benchmarks, while IT, realty and other interest-rate-sensitive sectors may remain vulnerable to global and domestic macroeconomic developments.
The overall market outlook is not uniformly bearish, given the strength of foreign inflows and the resilience of broader market indices. Nevertheless, elevated inflation, currency weakness and higher energy costs could limit the pace of further gains.
For investors, the coming sessions may favour selective exposure to companies with strong balance sheets, sustainable earnings growth and reasonable valuations rather than aggressive buying across the market. The ability of corporate earnings to absorb rising costs, together with the trajectory of inflation and foreign investment flows, will determine whether the current recovery can develop into a more durable market rally.
Key market indicators for the week
| Indicator | Weekly performance |
|---|---|
| Sensex | +0.7% |
| Nifty 50 | +0.5% |
| Nifty Midcap | +2.1% |
| Nifty Smallcap | +3.6% |
| Nifty IT | -3.2% |
| FII net purchases* | ₹19,776 crore |
| DII net sales* | ₹15,607 crore |
| October retail inflation | 6.09% |
| October food inflation | 8.94% |
Disclaimer: The market reports, data analyses, and financial summaries provided herein are for informational and educational purposes only and do not constitute financial, investment, or trading advice. While all reasonable care has been taken to ensure accuracy, the publisher and its business correspondents assume no responsibility for any financial losses or damages resulting from actions taken based on this content. Readers are advised to consult a certified financial advisor before making any investment decisions.