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Below the Quote on Weekly Market Outlook and Week Ahead by Vinit Bolinjkar, Head of Research, Ventura

* Weekly market outlook and week ahead

Indian equities are likely to enter the coming week with a cautious and volatile bias, as persistent foreign institutional selling continues to offset otherwise resilient domestic liquidity. On 24 September, FIIs were net sellers to the extent of ?5,027 crore, while DIIs provided support through net purchases of ?4,301 crore, highlighting the ongoing tug-of-war between global outflows and domestic institutional accumulation.  The Nifty’s ability to sustain above key support levels will depend on developments in crude oil prices, the rupee, US bond yields, global risk appetite and geopolitical events. Elevated crude and yields could keep valuation-sensitive large caps under pressure, although domestic flows may limit the downside. The week ahead is therefore likely to remain stock-specific, with sharp sectoral rotation. Investors should focus on companies with strong earnings visibility, healthy balance sheets and lower sensitivity to imported inflation, while avoiding aggressive positioning until foreign flows and global cues improve.

* Sectors likely to perform next week

Sector performance next week is likely to remain uneven, with domestic-oriented and defensive segments offering relatively better resilience. Banking and financial services may attract selective buying if domestic liquidity remains strong, although large private banks could remain sensitive to foreign selling and bond-yield movements. Consumer staples and healthcare are expected to benefit from their defensive characteristics, particularly if volatility persists. Capital goods, infrastructure and defence may continue to witness stock-specific interest on the back of order visibility and government-led spending, but elevated valuations warrant selectivity. IT could remain influenced by US macroeconomic cues, currency movements and global technology spending expectations. Auto and chemicals may face margin concerns if crude and input costs remain elevated. Overall, investors should prefer quality leaders, companies with strong cash flows and sectors driven by domestic demand, while maintaining a cautious stance on highly leveraged and valuation-heavy counters.

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