Dalal Street ended the week on a strong note. The BSE Sensex rose 2,256.94 points, or 3.11%, in the week ended Friday, October 16, to close at 74,729.27, while the NSE Nifty 50 gained 2.78% to finish at 23,146.15. The Sensex this week rode on IT stocks more than anything else. It was the second straight weekly gain for the markets, powered by a blistering rally in IT stocks and a sharp rebound in the rupee.
Now, all eyes turn to next week, when the Rs 30,213 crore Jio Platforms IPO – set to be India's largest ever – opens for subscription.
How the week played out
It was not a smooth ride. The Sensex lost 547 points on Monday, bounced back by over 1,100 points on Tuesday, slipped on Wednesday, and then surged 1,533 points on Thursday. A further 413-point gain on Friday sealed the week.
| Sensex weekly close | 74,729.27 (+3.11%) |
| Nifty 50 weekly close | 23,146.15 (+2.78%) |
| Nifty IT | 42,730.85, up over 11% – best week since April 2008 |
| Bank Nifty | About 55,844, nearly flat |
| Rupee (Friday) | About 94.96 per dollar, from near 97 earlier in the week |
| India VIX | 14.02, down 4.5% for the week |
| FII flows, October so far | Net selling of about Rs 49,935 crore |
| DII flows, October so far | Net buying of about Rs 51,829 crore |
IT stocks steal the show
The real story of the week was technology. The Nifty IT index jumped more than 11% – its strongest weekly gain since April 2008 – as strong September-quarter earnings and upbeat management commentary brought buyers back to a sector that had been beaten down.
Tech Mahindra led the charge with a gain of about 18.7% for the week after reporting a 32.7% jump in Q2 net profit to Rs 1,585.6 crore. Wipro, Infosys and TCS also ended the week higher.
Not every sector joined in. FMCG stocks slipped on worries about margin pressure from higher input costs, and Nestle India fell nearly 4% after its results despite a sharp profit jump. Healthcare and pharma also lagged, while midcaps and smallcaps rose far less than the headline indices – a sign the rally was concentrated in large-caps.
Rupee rebounds after RBI steps in
The rupee had its best week since March, recovering about 2% to around 94.96 against the dollar. The Reserve Bank of India took several steps during the week: it opened a special dollar window to meet the needs of state-run oil marketing companies, tightened rules on foreign exchange derivatives and hedging, and raised the minimum daily cash reserve ratio maintenance requirement for banks to 99% from 90% to soak up surplus liquidity.
Inflation remains the worry in the background. Wholesale inflation rose to 11.39% in September from 9.92% in August, retail inflation is near the top end of the RBI's comfort band, and Brent crude is still hovering around $105 a barrel.
Jio Platforms IPO: key details
The big event next week is the Jio Platforms IPO. Here is what investors need to know:
- Price band: Rs 1,065 to Rs 1,119 per share.
- Issue size: Up to Rs 30,213 crore, entirely a fresh issue of up to 27 crore shares – no offer for sale.
- Dates: Anchor bidding on October 19; the issue opens October 21 and closes October 23. Allotment is expected on October 26 and listing on October 28.
- Minimum bid: 12 shares, which works out to Rs 13,428 at the upper end of the band.
- Reservations: Up to Rs 500 crore for eligible employees at a Rs 54 discount per share, and up to Rs 2,500 crore for eligible Reliance Industries shareholders.
- Use of funds: Mainly to prepay certain borrowings of Reliance Jio Infocomm, plus general corporate purposes.
At the top of the band, the issue would be about 8% larger than Hyundai Motor India's Rs 27,859 crore IPO of 2024, the current record holder.
What it means for investors
For retail investors, the week showed that the market can still rally sharply even as foreign investors keep selling – FIIs have been net sellers for nine straight weeks, while domestic institutions continue to absorb the supply. Analysts have advised staying selective and keeping position sizes disciplined, given that the gains have been narrow.
Anyone planning to apply for the Jio IPO should read the red herring prospectus, check their bank's ASBA or UPI limits in advance, and avoid putting in money they may need in the short term.
What to watch next week
Besides the Jio IPO, Zetwerk's Rs 5,012 crore issue closes on October 19, with listing expected on October 23. More September-quarter results, India's October PMI data, crude prices and the US Federal Reserve's meeting on October 27–28 will set the tone for the markets.
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