FPJ News Service MUMBAI

Indian equities are set for a high-voltage week as investors brace for the Reserve Bank’s Monetary Policy Committee (MPC) rate decision, a raft of macroeconomic data, and shifting foreign investor activity.  With benchmark indices recently surging to fresh record highs, the interplay of these factors will determine whether the market can sustain its upward momentum.

 According to Dr V. K. Vijayakumar, Chief Investment Strategist at Geojit Investments, there is no conclusive indication of a trend reversal in FII behaviour. Their intermittent buying and selling suggest that flows may pivot as conditions evolve. The new highs recorded by the Nifty and Sensex after a fourteen-month wait, coupled with improved Q2 earnings and prospects of 15–16% earnings growth in FY27, have strengthened market sentiment. 

 He added that India’s Q2 GDP growth of 8.2%—far above expectations—underscored the economy’s resilience. “This sharp acceleration, despite the overhang of Trump-era tariffs, reinforces confidence in India’s ability to deliver around 7.2% growth in FY26.  Notably, manufacturing expanded 9.1%, capital formation rose 7.3%, and consumption revived with 7.9% growth. These numbers are a clear boost for the bulls and could slow sustained FII selling.”

   Vinod Nair, Head of Research at Geojit Investments, observed that markets “weathered a dynamic week marked by bouts of volatility and strength,” supported by softer US yields, rising expectations of a Fed rate cut, and benign crude prices. Strong domestic inflows later helped offset early pressure from a weak rupee and FII outflows, driving a broad-based rebound led by Pharma, PSU Banks, Media and IT.

 “With robust GDP momentum, improving credit growth and the promise of stronger earnings in H2, the medium-term outlook remains encouraging, though short-term volatility may continue to track global cues and central-bank signals,” he said.