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Below the Weekly market outlook 11th September 2026 from Vinod Nair, Head of Research at Geojit Investments Limited

"Domestic equities ended the week decidedly lower, extending the corrective trend, as an energy-led inflation narrative dominated sentiment. Crude sustaining above the USD 100 per barrel mark, on continued hostilities and retaliatory action in West Asia, remained the central variable through the week. Compounding the pressure, the fund flow environment turned increasingly challenging as expectations of synchronized monetary tightening gained traction. Rising global bond yields, together with concerns over a potential unwind of yen-funded carry trades amid expectations of a BOJ rate hike and a stronger yen, weighed on investor risk appetite and heightened concerns over capital flows into emerging markets. Domestically, rising bond yields and a depreciating rupee weighed on sentiment through the week. Notably, large-caps lagged the broader market, while the relatively milder correction in mid- and small-caps helped cushion overall market weakness. Sectorally, the week showed a clear rotation into defensives, with healthcare and pharma leading the gains. At the other end, the IT sector declined over the higher global rate environment, while the real estate sector corrected over rising yields and funding costs.

The coming week brings a dense macro calendar with key releases like the US and domestic inflation prints and policy decisions from both the Fed and the BoJ, which, alongside the trajectory of crude, will set near-term direction. Elevated energy prices sustained foreign outflows and geopolitical uncertainty will keep volatility high. However, resilient domestic fundamentals and strong institutional support could continue to attract buying at lower levels and contain the downside. The near-term task is to book partial profits where valuations are stretched and systematic risk exposure is highest and redeploy into defensive and deep-value segments."

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