Indian stocks regained momentum in the week to October 21, rising more than 2% on positive global signals, healthy earnings, slowing selling by foreign institutional investors (FII) and large cap and PSU bank stock purchases decreased.

For the week ended October 21, the BSE Sensex gained 1,387.18 points or 2.39% to end at 59,307.15, while the Nifty50 gained 390.6 points or 2.27% at 17,576.3.

On the sector front, the Nifty PSU Banks Index rose 11%, Nifty Banks rose 3.7%, and the Nifty Oil & Gas Index rose 3.4%. On the other hand, Beautiful Metals and Media closed slightly lower. For the week, the BSE index of large-cap stocks rose more than 2%, while the index of small and mid-cap stocks closed flat.

October 21, 2022, is the last trading day for Samvat 2078. Sensex is down 1.27% for the year, and Nifty is nearly 2%. In the broader index, the BSE small-cap index was down 1.16%, the midcap index was down 4.5%, and the large-cap index was down 1%.

This week, FIIs bought shares worth Rs 1,324.34 crore, while domestic institutional investors (DIIs) bought shares worth Rs 3,569.49 crore. So far in October, FIIs have sold shares worth Rs 8,653.92 crore, while DIIs bought shares worth Rs 11,624.54 crore.

For the week, the BSE small-cap Index was flat. Exxaro Tiles, Suzlon Energy, Jammu and Kashmir Bank, HPL Electric & Power, Indian Bank, Binny, Elgi Equipments, South Indian Bank and Deepak Fertilizers grew 15-30%.

On the other hand, Rajratan Global Wire, J Kumar Infraprojects, Nureca, DCM Nouvelle, Thangamayil Jewellery, Xelpmoc Design and Tech, Brightcom Group, Johnson Controls, HPCL, Waaree Renewable Technologies, HeidelbergCement India, FCS Software Solutions and Cosmo First lost 10- 17%. The BSE 500 rose 1.8%, supported by Suzlon Energy, Canara Bank, Indian Bank, Elgi Equipments, Deepak Fertilizers, Union Bank of India and Punjab National Bank.

China’s GDP figures, due early next week, will be closely watched by global investors. Industrial production, quarterly retail sales and monthly unemployment are also included in this set of economic indicators.

Market participants will also focus on QoQ Advance data on US GDP growth rates. The movement of the Indian rupee against the US dollar will be closely watched at home as the Indian rupee depreciates to an all-time low.

Sentiment will take a hit with the release of quarterly results. D-Street will value any management insights that can be used to predict earnings trajectories and future prospects. The Nifty has immediate support at 17,330, just below the 17,250 level. The index faces resistance at the 17,800 level, followed by the 17,900 level.