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Below the Weekly market outlook 15th November 2026 from Vinod Nair, Head of Research at Geojit Investments Limited

"Indian equities caught their breath after last week's blistering rally, trading in a narrow range with a positive bias through a holiday-shortened week. Steady foreign inflows and better-than-expected Q2 earnings, which have raised hopes of upgrades to FY27 estimates, absorbed bouts of profit booking, and the benchmarks closed the week marginally higher. Inflation, however, returned to centre stage. A hotter-than-expected U.S. CPI print cemented bets on a December Fed hike, while hawkish Fed remarks pushed global yields higher. At home, retail inflation jumped to a two-year high, breaching the RBI's upper tolerance limit as food prices surged. Fears of further tightening snapped a three-session winning run at the end of the week.

Beneath the muted headline, risk appetite held firm. Mid- and small-caps outperformed, and money rotated out of defensive pharma into banks, financials, autos and realty. Foreign investors drove a shift into large-cap financials rather than broad index chasing. IT struggled under a firmer rupee and the prospect of higher-for-longer global rates, while metals also lagged. Banks, realty and autos took the brunt of the late-week selling.

Next week brings U.S. retail sales, Nvidia's earnings and the FOMC minutes, which will shape global rate expectations and tech sentiment. Meanwhile, markets will start pricing the RBI's response ahead of its December policy review, with crude and foreign flows the other key watchpoints. Several macro tailwinds now look largely priced in. Still, valuation comfort in large caps, easing geopolitical risk, crude's retreat from recent peaks and the prospect of a double-digit earnings recovery keep the medium-term backdrop constructive. Expect near-term consolidation with a cautious lean. Investors should stay selective, favouring large-caps with earnings visibility and using dips to accumulate."

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