Equity & Indian Market Developments

 

• Nifty 50 lost 2.36% to close at 22,600 and the Sensex fell 2.15% in the week ended 23 October, ending a two-week recovery.

 

• Broader markets were notably weaker: Nifty 500 fell 3.78%, Midcap 100 lost 5.63%, and Small cap 100 declined 7.27%.

 

• Nifty IT stood out with a modest 0.22% gain; the services sector fell 1.79%, showing relative resilience versus the wider market.

 

• Nifty Metal (-5.40%), FMCG (-4.34%) and other cyclical pockets saw sharp selling; BSE Realty fell 5.36% amid weaker deal activity.

 

• India VIX jumped 19.20% to 16.76, signalling an increase in investor caution and near-term volatility.

 

• Higher crude prices, Middle East supply concerns and expectations of tighter monetary conditions weighed on equities.

 

 

Global Market Developments

 

• Global equity markets weakened: MSCI World declined 0.67%, Russell 1000 lost 0.37% and Nasdaq Composite fell 0.71%.

 

• Europe also retreated: FTSE 100 declined 1.76%, Germany DAX 1.72% and France CAC 40 2.19% over the week.

 

• Asian performance was mixed: Nikkei 225 dropped 4.03%, Hang Seng lost 4.52% and Shanghai Composite eased 0.69%.

 

• Sovereign yields eased globally: US 10-year fell to 4.99% from 5.10%; UK declined to 5.37% and Germany to 3.35%.

 

 

 

Fixed Income & Debt Market

 

• The RBI kept its repo rate at 5.50%; October MPC minutes stressed inflation risks and suggested little scope for near-term cuts.

 

 

 

• India’s benchmark 10-year G-Sec yield climbed 10 bps to 7.48% from 7.38%, reflecting tighter liquidity and oil-related inflation concerns.

 

 

• India’s foreign exchange reserves fell to $721.02 billion as of 16 October, from $726.03 billion a week earlier.

 

Commodities

 

• International gold fell 4.07% WoW to $3,995.52/oz as a firmer dollar and inflation-driven Fed concerns pressured bullion.

 

 

• Silver dropped 5.46% to $53.89/oz. MCX silver lost over 7%, falling below ₹2 lakh, as short-term momentum deteriorated.

 

• Precious metals face near-term pressure from inflation surprises, higher energy costs and expectations for restrictive rates.

 

• Brent crude rose 6.85% to $117.14/bbl. and NYMEX crude gained 1.50% to $103.10/bbl. amid fresh Middle East supply risks.

 

• Energy markets remain exposed to attacks on regional infrastructure and the prospect of renewed US-Iran escalation.

 

• Copper weakened as higher LME inventories encouraged profit-taking, even as electrification supports longer-term demand. 

 

Macro-Economic Updates

 

• India’s eight core industries grew 7.9% YoY in September, from a revised 5.9% in August, led by iron ore and electricity.

 

• Navratri vehicle retail sales rose 1.95% YoY; two-wheelers gained 5.78%, while passenger vehicles declined 13.66%.

 

• RBI minutes flagged broader inflation risks. UK September CPI accelerated to 3.5%; Japan headline CPI rose to 2.1%.

 

• The rupee was ₹94.94 per US dollar. Upcoming catalysts include the 28 October Fed decision and US growth/inflation data.

 

 

 

 

 

Best Regards

Alpha Research

 

Disclaimer: This report is for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any financial instrument.The information is based on publicly available sources believed to be reliable, but accuracy and completeness are not guaranteed. Views expressed are subject to change without notice.  Investors should conduct their own due diligence and consult a qualified financial advisor before making investment decisions.