Indian Developments
Indian equity markets recovered this week but ended with a mild decline in the broad Indices, supported by RBI dovish policy stance, festive demand optimism, and reforms in capital market lending.
FII continued their selling streak with net outflows of Rs 8,074 Crs driven by India-US trade deal uncertainty, H1B Visa hike and rupee weakness, DII provided strong support with capital inflow of Rs 13,834 Crs.
Midcaps and small caps showed resilience toward the end of the week.
The Nifty 50 ended with 0.65% decline , with Midcap 150 and Small cap 250 indices plunging 0.57% and 0.86%, respectively. Despite the volatility, India VIX dropped by 4.37%.
Brent crude rose 2.7% to $64.42 down by ~5% from previous week driven by increased supply and expectations of further OPEC+ output hikes have pressured prices, and the rupee hovered near ?88.78/USD, near to its 52-week low , reflecting FII outflows and global risk aversion.
Sectoral Developments
On sectoral front, mixed performances can be observed with Nifty Metals emerging as a top performer with 2.16% gains driven by global copper rally and EU tariff hike speculation.
Nifty PSU Bank was another sector for the highlights of the week, gained 2.04% Vis-à-vis previous week, reflecting RBI unchanged policy stance. Nifty Private banks and Nifty Oil and Gas recorded an upward momentum too.
Nifty IT with 2.98% , Nifty Consumer durables with 2.20% were the top losers for the week hit by the US Visa fee hikes and US tariff on pharma. Nifty Realty was another sector that took the hardest hit by 1.62% decline.
Auto and Retail sectors saw strong traction this week.
Global Developments
US Indices saw the mild recovery driven by Friday rally , For the week as a whole, Indices were down, driven by hawkish comments from FED. Fed Chair Jerome Powell acknowledged a "challenging situation" due to both inflation and labor market risks, and noted that "equity prices are fairly highly valued
U.S. stock indices—the Dow Jones Industrial Average , Nasdaq 100 and S&P 500— gained by 0.17%, 0.37% and 0.06%,respectively, compared to the previous week.
In Asia, South Korea’s KOSPI and Japan’s Nikkei fell sharply by 2.70% and 1.85% respectively emerged as a top performer.
European indices ,with the FTSE 100 mildly up by 0.52% and Germany’s DAX declined by 0.21% respectively.
Among Asian markets, the Shanghai Composite surged by 0.52% and Hong Kong’s Hang Seng Index led downturn, declined by 0.68%
Other Markets:
Source: www.nseindices.com; MCX Gold Prices; Economic times, Bloomberg.
Data for week ended on October 03 , 2025.
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