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Below the Weekly market outlook 24th October 2026 from Vinod Nair, Head of Research at Geojit Investments Limited

"Indian equities endured a challenging, holiday-shortened week, with benchmark indices extending their losses as inflation concerns intensified following a fresh surge in crude oil prices. Against this backdrop, rising domestic yields placed equity valuation premiums under renewed scrutiny, weighing steadily on the market and overshadowing support from resilient Q2 earnings. The broader market took the brunt of the de-risking, as valuation concerns and the unwinding of leveraged positions triggered a disproportionately sharp correction in mid- and small-caps, while large-caps held up comparatively better. Across sectors, IT was the lone pocket of resilience, recovering from early selling to end the week largely unchanged on improving earnings visibility and renewed investor appetite. However, rate-sensitive sectors such as consumer durables, metals and realty saw the heaviest selling as input-cost and margin worries resurfaced.

Looking ahead, policy decisions by the U.S. Fed, the ECB and the BoJ will be the key global triggers next week, as investors assess how major central banks weigh inflation risks against growth. Until then, foreign flows are likely to stay subdued with yields elevated. Developments in West Asia will continue to drive crude prices and, through them, the rupee and domestic inflation expectations. At home, the IIP release will give a read on the strength of industrial activity. Market direction will also depend on how broad-based Q2 earnings turn out and on progress in India–U.S. trade negotiations. In this environment, stock- and sector-specific opportunities are likely to dominate, with earnings visibility and valuation comfort setting stocks apart. Investors would do well to stay selective and approach the broader market with caution until the excesses in valuations and leverage are worked off."

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