Stock Market This Week: The direction of local stock markets next week will depend on global trends, attitude of foreign investors and quarterly results of companies. Experts believe that despite it being a festive week, there will be no dearth of developments in the market. BSE and NSE will organize a special ‘Muhurat Trading’ session on Tuesday, October 21, which will run from 1:45 pm to 2:45 pm. There will be no normal trading on this day, while the stock markets will remain closed on Wednesday on the occasion of Diwali Balipratipada.

How will the market move?

Ajit Mishra, Senior Vice Chief (Research), Religare Broking Limited, says that the short trading week will be full of events and many key factors will come to the fore for investors. Market participants will be the first to react to the quarterly results of big companies like Reliance Industries, HDFC Bank and ICICI Bank, which will decide the direction of the broader market.

He said that the one-hour Diwali special Muhurat trading session on October 21, marking the beginning of Samvat 2082, will be important for emotional signals and festive cheer.

Ajit Mishra further said that the results of the second quarter of the financial year 2025-26 are underway, in which major companies like Colgate, Hindustan Unilever, Dr. Reddy’s Laboratories and SBI Life Insurance will present their results. He said that investors will keep a close eye on the proposed US tariffs on China, as well as crude oil prices and currency fluctuations.

Impact of quarterly results on the market

Foreign portfolio investors (FPIs), who were sellers on a net basis for the last three months, have turned buyers with net investments of Rs 6,480 crore so far in October. This change is being seen due to strong macroeconomic indicators.

Pravesh Gaur, senior technical analyst at Swastika Investmart, says that the upcoming results of Hindustan Unilever and Dr. Reddy’s Laboratories are expected to decide the direction of the corporate earnings session. At the same time, any relief in US-China trade tension can give a positive shape to the market sentiment. Last week, BSE Sensex rose 1,451.37 points or 1.75 percent, while Nifty closed 424.5 points or 1.67 percent higher.

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Stock Market News: There is a period of selling in the Indian stock market. In the first week of September, foreign portfolio investors (FPI) withdrawn Rs 12,257 crore (US $ 1.4 billion) from domestic stock markets. FPIs are selling in the dollar amidst constant strength, American tariff tension and frequent geopolitical stress.

Last month i.e. in August, FPI withdrawn Rs 34,990 crore from shares and Rs 17,700 crore in July. According to depository data, in 2025, foreign portfolio investors have withdrawn a total of Rs 1.43 lakh crore from shares.

Why foreign investors running away?

Angel One Senior Basic Analyst Waqar Javed Khan says FPI flow in the coming week will depend on the US Federal Reserve comment, US labor market figures, RBI’s expectations of interest rate cuts and its stability on the stability of the rupee.

Himanshu Srivastava, Associate Director (Manager Research) of Morningstar Investment, says that although instability may persist in the near future, FIPI may be attracted back to the Indian market when the global uncertainty hopes of policy reforms such as India’s growth saga, coherers such as coherers and companies’ income are reduced.

What do experts say?

Market experts believe that a combination of global and domestic factors has promoted recent withdrawal. Jiojit Investments Chief Investment Strategist V.K. Vijaykumar says that FPIs are able to cash in money on high evaluation due to continuous large-scale domestic institutional investors and invest money in cheap markets like China-Hong Kong and South Korea.

According to the data, FPI has invested Rs 1,978 crore under the general limit from loan or bond during the period under review and withdraw Rs 993 crore from voluntary retention route.

Also read: Global trend and inflation figures … This week these factor will decide the stock market move

Indian Stock Market: The new FY 2025-26 is starting from this week. Foreign investors are returning to the Indian market after selling six months. In such a situation, the question in the minds of investors is how the new financial year will be. The market will also keep an eye on the meeting of the RBI Monetary Policy Committee in the second week of April 2025 with the allanes associated with the tariff of US President Donald Trump, in which the reduction in interest rates is expected.

The past week is mixed for the stock market. This week the Nifty 50 and the Sensex 30 indices recorded a slight increase, while the BSE Midcap and Smallcap indices made weak performances and closed down with a decline. Despite the weak global signals and concerns about the upcoming American tariffs, the positive perception of foreign investors continued in the market. According to market experts, after continuous selling in recent months, FIIs have become pure buyers in the last few sessions.

There was a ups and downs in the market on 28 March on the first day of the new (April) series. The Sensex fell 191.51 points or 0.25 percent to close at 77,414.92, while the Nifty fell 72.60 points or 0.31 percent to close at 23,519.35. According to a note of choice broking, for the week, the Sensex and Nifty increased by more than 0.5 percent, increased by 6 percent for the month and 5 percent increased in FY 2024-25. Meanwhile, India VIX fell 5.31 percent to 12.5750, indicating low instability in the market.

Manoj Purohit, partner and leader of BDO India’s Financial Service Tax, Tax and Regulatory Service, said that the FII flow has started in the green mark, which has returned enthusiasm in the Indian market despite the last week of the financial year, which usually shows huge profits. He further said, “On the other hand, one of the major announcements made by SEBI in his board meeting has encouraged the FPI.”
Overall, this capital market is a time taken by the regulator, in which foreign investors are taking a cautious stance towards India. Now everyone’s eyes are on the upcoming announcements made on the US possible tariff sanctions and the RBI’s review meeting.

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There has been a tremendous boom in the markets for the seventh consecutive day. In such a situation, this jump has been seen in both Sensex and Nifty. With this, the compensation in the year 2025 has been completed. Such the enthusiasm of investing in the Indian market from foreign investors and heavy purchases in banking shares show tremendous. Now let us know what has been the reason for this market fast:

1-A tremendous return of the foreign investor

Foreign investors are once again seen returning to the stock market. On Friday, FPI made a net purchase of Rs 7,470.36 crore. However, the main reason for this is the change in the FTSC index. With this, the period of selling from foreign investors in October 2024 now seems to be stopping.

This has strengthened the sentiment of investors. According to Moneycontrol Dock Com Com, Jio Jeet Financial Chief Investment Strategist V.K. Vijay Kumar said that FPI selling, strengthening of rupee, reduction in inflation and strength of Indian rupee have returned so much confidence in the market.

Rupee stronger against 2-dollar

The Indian rupee climbed 37 paise to close at 85.61 per dollar against the US dollar on Monday. The rupee has benefited from dollar and foreign investment in the domestic market.

3-strong global signal

The third reason for the tremendous rise in the stock market is signs of strength in the global market. There is a phase of strength in the US stock market and an increase in the Indian stock market as well. US President Donald Trump has indicated to adopt a selective approach over a possible tariff. Donald Trump can only target countries whose trade with the US is surplus.

After these signs, now the fusers of American stocks have increased. At around 10 am in Somavar, Dau Future was trading with a gain of 0.47 percent. Earlier on Friday, the SNP 500 index and Dow Jones Industrial Average were 0.1%. At the same time, 0.5% jumped in Nesdech Composite. Investors are now monitoring the April 2 deadline for action related to possible tariffs.

4- Tremendous boom in banking stocks

The fourth reason for the boom in the stock market was a tremendous rise in banking stocks. On Monday, the Nifty Bank index jumped 1 thousand points and reached 51635 level during the business. While the shares of Kotak Mahindra Bank, Canara Bank and Punjab National Bank have witnessed the highest increase of 3 percent.

Improvement in 5-directors’ sentiments

The fifth and last reason for sharing the stock was improvement in investors’ sentiments. The Sensex saw a great rise of 3076.6 points, or 4.16 percent last week. At the same time, the Nifty also jumped up to 953.2 points i.e. 4.25 percent. Due to this, there has been an improvement in the sentiment of investors.

Siddharth Khemka, Research Head Wealth Management of Motilal Oswal Financial, said that the return of FII can continue in the stock market due to attractive valuation and better economic data.

Also read: Stock market accelerates for the seventh consecutive day, Sensex crosses 78000 as soon as it opens, this year’s decline has been made