Indian shares closed higher for a third straight session on Friday, with the Sensex rising 412.18 points, or 0.51%, to 81,642.30. The Nifty 50 ended at 24,906.75, its highest close this month.
The rally was led by private lenders. HDFC Bank and ICICI Bank together added close to 190 points to the Sensex after both reported loan growth ahead of estimates and steady asset quality for the September quarter.
Banks did the heavy lifting
The index opened flat and drifted lower in the first hour as IT stocks slipped. The turn came just after 11 am, when bank results lifted sentiment across financials, and the Sensex did not look back.
Financials made up roughly 55% of the day’s gain. Bajaj Finance and Axis Bank also closed higher, while state-run lenders lagged after a strong run last month.
Foreign money is back
Foreign portfolio investors bought ₹2,140 crore of Indian shares on Friday, according to provisional exchange data, their third straight day of net buying after selling through most of October. Domestic funds were net sellers for the session.
A softer dollar and steady bank earnings have given foreign funds a reason to come back, at least for now.
What it means for you
- SIP investors: no change needed. One good week does not alter a long-term plan.
- Bank fixed deposits: rates are likely to stay where they are if the RBI holds next week.
- Home loan borrowers: EMIs on floating-rate loans should stay flat for now.
What to watch next week
The RBI’s policy decision on Wednesday is the main event. Most economists expect the repo rate to stay unchanged. Retail inflation data for October follows on Thursday, and three mainboard IPOs open for bidding.