Indian Stock Market Gains for the Third Consecutive Week Amid FII Buying
The Indian stock market closed higher for the third week, driven by foreign institutional investment and a strong domestic economy.
Mumbai, November 14 (Daily Kiran) : The Indian stock market wrapped up the week ending November 14 with gains for the third consecutive week. This growth was fueled by ongoing purchases from foreign institutional investors (FIIs) and a robust domestic economic foundation. However, concerns over rising inflation led to profit-taking as the week drew to a close.
On a weekly basis, the NSE Nifty 50 saw a rise of 0.46 percent. Despite this, it fell by 155 points or 0.61 percent on Friday, closing at 25,144.30. Similarly, the BSE Sensex dropped 318.56 points or 0.39 percent in the last trading session, ending at 81,592.45, but still managed a weekly increase of 0.36 percent.
Analysts noted that investors engaged in profit-taking at elevated levels during the final days of the week, leading to pressure on key indices. Nevertheless, the overall market trend remained positive.
Banking stocks continued to perform well, with the Bank Nifty rising by 3.7 percent, despite a 0.8 percent decline on Friday. Strong buying in the financial sector significantly boosted the banking index.
FIIs maintained their buying spree for the third week, reversing a trend of ten consecutive weeks of selling. During the week, they made a net investment of ₹33,340 crore in the Indian market, providing substantial support.
Meanwhile, geopolitical tensions in West Asia contributed to a rise in crude oil prices towards the end of the week. U.S. WTI crude approached $88-89 per barrel, while Brent crude traded between $95-96 per barrel.
Experts pointed to new attacks on Saudi energy facilities and rising concerns over navigation in the Strait of Hormuz, alongside statements from U.S. President Donald Trump regarding Iran, which dampened hopes for reduced tensions.
The increase in global bond yields also impacted the Indian currency market, causing the rupee to weaken, reaching approximately 94.20 against the U.S. dollar.
In this context, the broader market outperformed the major indices. The Nifty Midcap 100 index rose by 1.56 percent during the week, while the Nifty Smallcap 100 recorded a 3.15 percent gain, indicating that investor interest was not limited to large companies.
Market experts suggest that in the coming weeks, investors will closely monitor U.S. Treasury yields and the dollar’s trajectory. Any further strengthening in these areas could affect capital flows into emerging markets and tighten financial conditions.
Technical analysis indicates that the Nifty’s nearest resistance range is between 25,400 and 25,500, while the significant support level is at 24,800. For the Bank Nifty, resistance is seen between 61,300 and 61,500, with strong support between 60,700 and 60,500.
Analysts believe that if the trend of foreign investment continues, the market could maintain a positive outlook. However, inflation, crude oil prices, and global geopolitical events may introduce volatility in the short term.
