Markets Next Week: Will the earnings-driven recovery continue amid elevated crude prices?

Indian equity markets ended the week on a positive note, with benchmark indices recovering from the previous week's decline as better-than-expected September-quarter (Q2 FY27) earnings and buying in select heavyweight stocks supported sentiment. Nifty50 gained around 2% during the week, while the BSE Sensex also advanced. However, elevated crude oil prices, geopolitical uncertainties and concerns over global technology stocks continued to pose risks to the recovery.

The broader market also rebounded after recording its steepest weekly decline since February 2025 last week. Nifty Midcap 100 and Nifty Smallcap 100 gained 2.71% and 4.1%, respectively.

Among sectoral indices, Nifty Pharma emerged as the top performer, rising 7.09%, followed by Nifty Healthcare, which gained 6.91%. The Nifty Realty index advanced 3.77%.

Global markets remained volatile amid concerns that massive investments in artificial intelligence (AI) may not generate adequate returns. Technology stocks came under intense selling pressure. Meanwhile, crude oil prices remained elevated, with Brent trading around $118 per barrel amid West Asia tensions. Gold and silver also remained under selling pressure.

The Indian rupee, meanwhile, stayed below the 95-mark against the US dollar, supported by RBI intervention. It had touched a record low of 96.96 in May.

What experts say about the market outlook

Dinshaw S. Irani, CEO of Helios Capital India, told Business Today that the worst may be over for Indian markets, citing a strengthening rupee and better-than-expected Q2 FY27 earnings as factors that could provide further impetus to growth.

Vinod Nair, Head of Research at Geojit Investments, said, "Improving macro conditions encouraged broader participation, with mid- and small-caps outperforming large-caps. Pharma and healthcare led the rally on encouraging earnings, realty gained from softer yields, while metals, FMCG and autos benefited from expectations of easing input costs. Cement and oil & gas remained the key laggards."

Nair added, "Looking ahead, US PMI, job data and US mid-term election outcomes will be crucial in shaping global risk appetite, while domestic PMI and Q2 earnings will steer stock-specific moves. With geopolitical risks resurfacing and crude remaining elevated, volatility is unlikely to fade quickly. Against this backdrop, we favour gradual accumulation in quality businesses offering resilient earnings visibility and reasonable valuations rather than chasing the broader market."

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "The Q2 FY27 earnings season has been positive, with no major negative surprises. Some bottom fishing has been taking place, and investors should follow a 'buy-on-dips' and 'sell-on-rallies' strategy. The US Federal Reserve's decision to maintain the status quo on interest rates has also provided a positive backdrop for the domestic market in the short to medium term."

Ajit Mishra, SVP (Research) at Religare Broking, noted, "Markets traded with a positive bias on Friday, extending the previous session's recovery as buying interest in select heavyweight stocks and earnings-driven optimism supported sentiment. Nifty moved above the 23,000-mark, while Sensex also advanced past 74,000 level, reflecting some improvement in investor confidence."

Nifty 50: Key levels to watch

On the technical front, Mishra said, "Nifty needs to sustain above 23,200 to strengthen the prospects of the next leg of recovery towards 23,500. On the downside, the 22,800–23,000 zone is likely to provide immediate support during any pullback. Despite improving momentum in select frontline stocks, elevated crude prices, geopolitical risks and subdued broader-market participation warrant caution. Traders should remain selective, avoid aggressive leverage and maintain disciplined risk management."

Top gainers and losers

Trent led the Nifty 50 gainers during the week, advancing 10.63%. Dr Reddy's Laboratories gained 9.96%, followed by Apollo Hospitals (9.29%), BSE (8.65%) and Adani Ports (8.65%).

On the losing side, Shriram Finance declined 4.84%, followed by Coal India (2.13%), Reliance Industries (2.11%), TCS (1.08%) and ONGC (0.93%).

Among NSE 500 stocks, Acutaas Chemicals topped the gainers' list with a 27.60% advance. Ather Energy rose 27.25%, Piramal Pharma gained 25.04%, Laurus Labs advanced 22.11% and HEG Advanced Materials climbed 18.47%.

CarTrade Tech was the biggest loser in the index, declining 22.36%. eClerx Services fell 17.71%, Dalmia Bharat lost 16.66%, Hexaware Technologies declined 15.06% and Intellect Design Arena shed 13.39%.

RIL shares in focus after Q2 results

Reliance Industries (RIL) shares are likely to remain in focus next week after the Mukesh Ambani-led conglomerate reported strong earnings growth for the September quarter. 

The company posted a 40.64% year-on-year (YoY) increase in consolidated net profit to Rs 25,548 crore in Q2 FY27, compared with Rs 18,165 crore in the corresponding quarter last year. Revenue from operations rose 28.57% YoY to Rs 3,32,861 crore in Q2 FY27 from Rs 2,58,898 crore in Q2 FY26.

The results are also the first to be announced since the successful listing of its digital services and telecommunications arm, Jio Platforms. RIL shares have been trading near their 52-week lows.

Alongside announcing its quarterly earnings, RIL said its board has approved a resolution to raise up to Rs 15,000 crore through the issuance of listed, secured or unsecured, redeemable non-convertible debentures (NCDs) on a private placement basis, in one or more tranches.

Meanwhile, newly-listed Jio reported consolidated quarterly revenue of Rs 47,485 crore, up 11.3% YoY. Its quarterly EBITDA increased 16.6% YoY to Rs 21,879 crore.

Are FIIs turning buyers?

Foreign institutional investors (FIIs) turned net buyers in three of the five trading sessions during the week, although their flows remained volatile. Domestic institutional investors (DIIs) also provided support in select sessions.

Earnings to watch

The September-quarter earnings season will continue to drive stock-specific action, with several prominent companies scheduled to report results next week.

November 2: ITC, Marico, Nalco, UPL and Petronet LNG.

November 3: SBI, NSE, Bajaj Finserv, Lupin and MCX.

November 4: BSE, Lenskart, Apollo Hospitals, Dabur and Torrent Power.

November 5: Airtel, LIC, Titan, M&M and ONGC.

November 6: Hindalco, Bosch, Gland Pharma, Jubilant FoodWorks and Aster DM.

Key events to watch

Beyond corporate earnings, investors will track domestic automobile sales data, along with key economic and political developments in the US.

November 1: Domestic automobile sales data.

November 2: US PMI data.

November 3: US mid-term elections.

November 6: US jobs data.