Sensex, Nifty Extend Rally as RBI Dollar Window Lifts Rupee
Sensex rose 3.11% and Nifty 2.78% this week as RBI’s dollar window for OMCs lifted the rupee. IT led gains, FII selling eased. Read the full market wrap.
Key Highlights
- Second winning week: Nifty gained 2.78 per cent and Sensex 3.11 per cent during the week; on Friday, Nifty closed at 23,146 and Sensex at 74,729.
- Rupee turnaround: The RBI’s special dollar window for oil marketing companies and tighter hedging norms helped the rupee rebound, lifting market confidence.
- IT leads, FMCG lags: IT emerged as the top performer on strong earnings, while FMCG and pharma came under pressure.
- FII selling slows: Foreign investors’ weekly selling fell sharply to Rs 89.91 billion from Rs 302.94 billion, and they turned net buyers on Friday.
- Watch next: India’s October PMI, US jobless claims and Japan’s inflation data will guide market direction.
Indian equity markets ended the week on a confident note, stretching their recovery into a second straight week. The turnaround came even as inflation worries clouded the early sessions, with a timely intervention by the Reserve Bank of India to support the rupee proving to be the key turning point for investor sentiment.
How the Indices Closed
On the last trading day of the week, Nifty gained 0.65 per cent to settle at 23,146, taking its weekly gain to 2.78 per cent. Sensex rose 413 points, or 0.56 per cent, to close at 74,729, ending the week 3.11 per cent higher.
A Rocky Start to the Week
The rally did not come easily. Consumer inflation hovering near the upper end of the RBI’s tolerance band, followed by a hotter-than-expected wholesale price index print, pushed benchmark bond yields to multi-year highs. The central bank’s decision to raise the daily cash reserve ratio maintenance requirement to absorb surplus liquidity added another layer of caution.
