Indian stocks end October higher, but midcaps and smallcaps lag behind

what happened

Indian equities finished October on a positive note after two straight monthly declines. On Friday the benchmark indices rose, led by information technology, pharmaceuticals and some heavyweight stocks. The Nifty climbed back to 23,000 and the Sensex gained 0.42% to close at 74,459.53.

For the month the Sensex rose 2.7% and the Nifty almost 2%. Midcap and smallcap stocks, however, ended with losses, weighed down by elevated crude prices and uncertainty around the AI investment theme. According to Moody's, foreign portfolio investors were net sellers of 45,161 crore in October, while domestic institutions increased their net purchases.

The rupee closed at 94.95 against the dollar, and Brent stayed above $116 a barrel, up almost 14% during October.

why it matters

The key question for markets is whether domestic buying can offset foreign outflows. Expensive oil and a weaker rupee add pressure on India as a large energy importer, so the sustainability of the recovery remains uncertain.

market impact

Indian equities: recovery under way, but pressure from oil prices and foreign outflows persists

• ↔Indian equities (Nifty, Sensex) mixed — domestic buying offsets foreign selling and expensive crude weighs on sentiment

tags

instruments