Indian Benchmark Indices Break Eight-Week Losing Streak as IT and Auto Stocks Rally

Indian stock market benchmark indices staged a strong rebound on Friday, October 9, ending an eight-week losing streak for both the Nifty 50 and the Sensex. The Nifty rose 1.30 percent, while the Sensex advanced 1.23 percent. Bank Nifty also recovered, gaining 1.36 percent. This market-wide rally was led by IT stocks following Tata Consultancy Services' September-quarter results, with heavy buying extending into FMCG, auto, and financial shares. Foreign investor selling continued to pose a significant challenge, with foreign institutional investors recording net outflows of approximately ₹39,779 crore in October so far. However, domestic institutional investors bought around ₹40,355 crore over the same period, successfully offsetting the overseas selling and providing a vital cushion to stabilise the market. Sumeet Bagadia, Executive Director at Choice Broking, recommends SBI, HCL Tech, and Eicher Motors as top stock picks for traders. SBI share price stabilised around ₹959.10 after tapping into a demand pocket near ₹940 to ₹955. HCL Tech closed at ₹1,217 following a rebound from a falling wedge pattern near ₹1,180 to ₹1,200. Eicher Motors closed at ₹7,050 after defending its multi-month demand zone around ₹6,700 to ₹6,800.

Context

Domestic institutional investors in India often act as a crucial buffer against sudden pullbacks caused by heavy foreign capital outflows. Technical indicators like the RSI and India VIX help market analysts gauge short-term momentum and market fear levels during volatile trading weeks.