Indian stock markets closed out a choppy week with gains intact. The BSE Sensex and the NSE Nifty both finished the week ended Friday, November 13, higher for the third week in a row, even though a sharp sell-off on the final trading day trimmed much of the week’s progress. Foreign investors kept buying through the week, while rising crude oil prices and a hotter than expected inflation reading rattled sentiment on Friday.
At Friday’s close, the Sensex stood at 81,592.45, down 318.56 points or 0.39 per cent on the day. The Nifty settled at 25,144.30, down 155.05 points or 0.61 per cent. Yet for the week as a whole, the Sensex gained 564.43 points, about 0.7 per cent, and the Nifty added 113.95 points, about 0.46 per cent. It was the third consecutive weekly gain for both benchmarks, a run built on steady foreign inflows and strong domestic fundamentals.
Friday’s fall snaps a three-day winning run
Friday’s decline ended a three-session winning streak. Markets opened lower and stayed in negative territory for most of the session as profit booking intensified towards the end of the week. Realty, auto and cement stocks saw the sharpest selling, while banking, financial services and metal shares also weighed on the benchmarks.
The week in numbers
- Sensex: closed at 81,592.45 on Friday, up 564.43 points or about 0.7 per cent for the week.
- Nifty: closed at 25,144.30 on Friday, up 113.95 points or about 0.46 per cent for the week.
- Bank Nifty: outperformed the benchmarks, rising 3.7 per cent during the week, even though it shed 0.8 per cent on Friday.
- Broader markets: the Nifty Smallcap 100 rose more than 3 per cent during the week, while the Midcap 100 also ended higher, beating the benchmarks.
- Foreign investors: foreign institutional investors bought shares worth Rs 33,340 crore during the week, their third straight week of buying after a ten-week selling phase.
- Rupee: the currency weakened to around 94.24 against the US dollar on Friday, pressured by higher global bond yields.
What drove the gains, and what spoiled Friday
The week’s gains were powered largely by foreign money returning to Indian equities. Sustained buying by foreign institutional investors, now in its third straight week, combined with resilient domestic demand to keep the benchmarks moving higher through most of the week. Banking stocks led the way, with the Bank Nifty’s 3.7 per cent weekly jump standing out.
Friday told a different story. Brent crude futures climbed to around $95.5 a barrel, up from nearly $92 earlier in the week, as fresh attacks on Saudi energy infrastructure and renewed threats to shipping through the Strait of Hormuz raised fears of supply disruptions. Higher crude is a worry for India, the world’s third largest oil importer, because it pushes up the import bill, fuels inflation and pressures the rupee.
Inflation added to the nervousness. India’s retail inflation rose to 6.09 per cent in October, crossing the Reserve Bank of India’s upper tolerance limit of 6 per cent for the first time in two years. Food inflation accelerated to 8.94 per cent. The reading has strengthened expectations that the central bank could raise the repo rate again when its Monetary Policy Committee meets from December 2 to 4, after having raised it to 5.50 per cent in October. Analysts said the near-term view remains cautiously positive, but markets are expected to consolidate with intermittent volatility rather than move higher in a straight line.
What to watch next week
Investors will watch the direction of US Treasury yields and the dollar when trading resumes on Monday, November 16, since further strength in either could tighten financial conditions and influence capital flows into emerging markets like India. Foreign investor flows will remain the key driver, along with crude oil prices and any fresh signals on inflation.
FAQs
How did the Sensex and Nifty end the week?
The Sensex closed at 81,592.45 and the Nifty at 25,144.30 on Friday, November 13. Both benchmarks gained for the third straight week, with the Sensex up about 0.7 per cent and the Nifty up about 0.46 per cent.
Why did markets fall on Friday?
Rising crude oil prices, with Brent near $95.5 a barrel, and October retail inflation of 6.09 per cent, above the RBI’s 6 per cent upper limit, weighed on sentiment and triggered profit booking after three days of gains.
How much did foreign investors buy during the week?
Foreign institutional investors bought shares worth Rs 33,340 crore during the week, extending their buying streak to three consecutive weeks after a ten-week selling phase.
What should investors watch next week?
US Treasury yields, the dollar, foreign investor flows and crude oil prices will be in focus. On the charts, Nifty resistance is around 25,400 to 25,500, with support at 24,800.
For now, the market’s message is mixed but not gloomy: three weeks of gains say buyers are still in control, while Friday’s slide is a reminder that oil, inflation and interest rates can still spoil the mood in a single session.
