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Indian Market
Weekly Business
Brief
Brief
16 OCTOBER 2026
1
Market Recap
Nifty 5023,146.15▲ +2.78%
Sensex74,729.27▲ +3.11%
Bank Nifty~55,844▲ ~+1.06%
NSE and BSE were open for all five sessions this week, Monday to Friday, with no exchange holidays. Nifty 50 and Sensex ended the week higher for a second straight week, according to exchange data. For the week, Nifty 50 gained 625.70 points (2.78%) to 23,146.15 and Sensex gained 2,256.94 points (3.11%) to 74,729.27, while Bank Nifty ended near 55,844, about 1.06% higher. Nifty IT gained about 11.7% for the week, according to market reports.
Why it matters:
- September-quarter results from IT companies and RBI liquidity and rupee measures were among the developments market participants followed this week, according to market reports.
- Foreign institutional investors were net sellers of about ₹8,990 crore in the week while domestic institutional investors were net buyers of about ₹7,812 crore, according to provisional exchange data.
2
RBI Raises Daily CRR Maintenance to 99%; Conducts ₹25,000 Crore Bond Sale
The Reserve Bank of India raised the minimum daily cash reserve ratio (CRR) maintenance requirement for banks from 90% to 99% of the prescribed requirement, effective from the reporting fortnight beginning October 16, according to the RBI announcement as reported. The central bank also scheduled an open market sale of government securities worth ₹25,000 crore on October 13. The fortnightly average CRR requirement remains at 3% of applicable deposits.
Daily CRR minimum90% → 99%
Open market sale₹25,000 cr
Why it matters:
- Banking system surplus liquidity was ₹3.88 lakh crore on October 8, according to market reports citing RBI data.
- The measures followed the 25 basis point repo rate increase to 5.50%, according to market reports.
3
Nifty IT Gains About 11.7% for the Week; Tech Mahindra Reports Q2 FY27 Results
Nifty IT gained about 11.7% for the week, its largest weekly gain since April 2008, according to market reports, and rose for a fourth straight session on Friday. Tech Mahindra reported September-quarter revenue up 15.6% year on year to ₹16,180 crore and net profit up 32.7% to ₹1,586 crore, and the board recommended a 1:1 bonus issue and a ₹15 interim dividend. Its shares gained about 8.5% on Friday, according to exchange data.
Nifty IT (wk)▲ ~+11.7%
Tech Mahindra net profit (YoY)▲ +32.7%
Why it matters:
- Wipro shares gained about 6% on Friday after the company said deals deferred from Q2 would move into Q3, according to market reports.
- Infosys said AI services made up over 8% of its Q2 revenue, according to market reports.
4
Cabinet Committee Approves Sale of 60.72% IDBI Bank Stake to Fairfax-Linked Entity
The Cabinet Committee on Economic Affairs approved the sale of a 60.72% stake in IDBI Bank to 10955230 Canada Inc, a Fairfax Financial Holdings entity, for ₹52,878 crore at ₹81 per share, according to market reports. The Government of India is selling 30.48% and LIC 30.24%. The buyer remains subject to the RBI’s fit-and-proper assessment and other regulatory approvals, according to the same reports.
Stake60.72%
Deal value₹52,878 cr
Why it matters:
- After the transaction the Government is to hold 15% and LIC 19%, according to market reports.
- IDBI Bank shares declined about 8% on Thursday, according to market reports.
5
Supreme Court Upholds Order Setting Aside Yes Bank ₹8,415 Crore AT1 Write-Off
The Supreme Court on Thursday dismissed appeals by Yes Bank and the RBI and upheld the Bombay High Court order that set aside the March 2020 write-down of the bank’s additional tier-1 (AT1) bonds worth about ₹8,415 crore, according to market reports. Yes Bank shares declined about 15% during Thursday’s session, according to exchange data as reported, its steepest single-day fall since July 2020.
AT1 bonds covered₹8,415 cr
Yes Bank (Thu)▼ ~−15%
Why it matters:
- The bank estimated reinstating the bonds could reduce its CET1 ratio by about 250 basis points on a pro forma basis, according to market reports.
- Nifty Bank ended the week about 1.06% higher despite the decline in Yes Bank shares, according to exchange data.
6
Sectors Diverge: Auto, Realty and Defence Gain; Pharma and FMCG Decline
Sectoral indices moved in different directions this week, according to exchange data. Beyond Nifty IT, Nifty Auto gained about 3.7%, Nifty Realty about 2.7% and Nifty India Defence about 2.3%, while Nifty Pharma declined about 0.7%, Nifty FMCG about 0.6% and Nifty PSU Bank about 0.4%. Among Nifty 50 constituents, Nestle India declined about 5.1% and Max Healthcare about 4.3% for the week, according to market reports.
Nifty Auto (wk)▲ ~+3.7%
Nifty Pharma (wk)▼ ~−0.7%
Why it matters:
- Nifty Midcap 100 gained about 0.6% and Nifty Smallcap 100 declined about 0.1% for the week, according to exchange data.
- India VIX closed at 14.01 on Friday, according to market data.
7
Bond Market Update
India’s 10-year G-Sec yield was around 7.38% on October 16, compared with around 7.30% on October 9, a rise of about 8 basis points for the week, according to market data. Market reports cited the RBI’s liquidity-absorbing measures, government borrowing supply and expectations around rate action in connection with yield movements, and noted a decline in US Treasury yields during the week.
10-yr G-Sec7.38%▲ rose (wk)
Why it matters:
- The benchmark 6.94% 2036 bond has risen for nine consecutive weeks, a cumulative gain of more than 62 basis points, according to market data.
- The India–US 10-year yield spread was reported at 227 basis points, compared with 206 basis points a week earlier.
8
Commodities
Gold prices on MCX stood at around ₹148,324 per 10 grams, down by approximately ₹3,300, or about 2.2%, for the week, according to market data. Silver prices on MCX stood at around ₹213,475 per kilogram, down by approximately ₹11,400, or about 5.1%, for the week. On Friday, October 16, gold gained about ₹1,060 and silver about ₹2,815 during the session, according to market reports on MCX.
Gold (10g)~₹148,324▼ ~−₹3,300 (wk)
Silver (kg)~₹213,475▼ ~−₹11,400 (wk)
Why it matters:
- Gold and silver recorded weekly declines on MCX, according to market data; prices recorded gains on Friday.
- Market reports cited US inflation data and expectations around US Federal Reserve rates in connection with international bullion prices this week.
9
Currency Update
The Indian Rupee closed the week near ₹94.71 per US dollar, compared with around ₹96.73 the previous Friday, according to market data. The rupee strengthened by approximately 202 paise over the week, about 1.9%, which market reports described as its largest weekly gain in seven months.
USD/INR₹94.71▲ +202 paise (wk)
Why it matters:
- The RBI’s measures this week included spot and forward market intervention and a dollar window for oil marketing companies, according to market reports.
- India’s forex reserves were $726.02 billion on October 9, down $8.58 billion for the week, according to RBI data.