Sensex and Nifty end week with gains despite broader market sell-off
Benchmark indices rose up to 0.5 per cent on Friday while midcap and smallcap indices declined by up to 2 per cent.
The Sensex climbed 308 points to finish at approximately 74,460 on Friday, while the Nifty 50 increased by 116 points to end at 23,053. These gains occurred even as the Nifty Midcap 100 and Nifty Smallcap 250 indices dropped by as much as 2 per cent.
Oil prices rose 14 per cent in October, reaching six-month highs as concerns grew regarding a possible escalation in the Iran war. Daan Struyven, co-head of global commodities research at Goldman Sachs, said recent attacks showed how shipping disruptions could become more severe. Goldman Sachs estimates prices could reach $120 a barrel if Middle East vessel attacks intensify.
Foreign portfolio investors (FPIs) were net buyers of Rs 6,305 crore during the four trading days ending October 30, ending a 10-week selling streak. Geojit Investments Ltd chief investment strategist VK Vijayakumar said the shift in FPI sentiment helped the Nifty return to the 23,000 mark.
The Indian rupee strengthened to close at 94.95 against the US dollar on Friday, its best monthly gain since February. While the currency gained about 1 per cent during October, analysts noted that high crude oil prices and foreign portfolio outflows continue to impact the rupee.
Sudeep Shah of SBI Securities noted that the Nifty Midcap 100 and Nifty Smallcap 100 ended the month in negative territory for the second month in a row. However, he observed that both indices saw pullbacks from lower levels during the last week, indicating buying interest despite the weakness.