The Indian stock market recorded its strongest weekly gains in nearly six months for the week ended October 16, 2026, with the BSE Sensex surging 2,256.94 points or 3.11% to 74,729 and the NSE Nifty jumping 625.7 points or 2.77% to 23,146, marking their second consecutive weekly advance. According to The Hindu BusinessLine, the rally was primarily driven by a sharp rebound in information technology stocks following encouraging September quarter earnings, supported by renewed buying interest in several heavyweight stocks. As per The Economic Times, the rally was supported by a stronger Indian Rupee, softer crude oil prices, domestic institutional buying and optimism around a potential India-US trade deal, though the expert noted that the rally remained concentrated in large caps with midcaps posting modest gains while smallcaps largely lagged. Mehul Kothari, Deputy Vice President — Technical Research at Anand Rathi, highlighted that the Nifty 50 has staged a remarkable recovery, rallying nearly 1,000 points from its recent low of around 22,150 to a high near 23,150 in a short span, validating their earlier stance of not panicking during the breakdown near 22,200.
According to The Hindu BusinessLine, nine of the top-10 most valued firms saw a substantial increase in market valuation last week, with a combined surge of ₹3.65 lakh crore. TCS emerged as the biggest winner, with its market capitalisation surging ₹1,08,542.63 crore to ₹8,91,134.96 crore, followed by Bharti Airtel adding ₹61,406.53 crore to reach ₹11,88,815.45 crore. Infosys jumped ₹55,893.05 crore to ₹4,71,409.41 crore, while Reliance Industries zoomed ₹53,047.56 crore to ₹16,37,437.19 crore. HDFC Bank rallied ₹32,379.05 crore to ₹11,22,628.07 crore, and ICICI Bank soared ₹30,769.95 crore to ₹10,02,871.44 crore. Bajaj Finance's valuation edged higher by ₹14,786.65 crore to ₹6,11,326.72 crore, and LIC went up by ₹4,933.5 crore to ₹5,02,204.82 crore. State Bank of India advanced ₹3,323.07 crore to ₹8,87,722.84 crore, while Larsen & Toubro was the only laggard, declining ₹9,232.26 crore to ₹4,99,725.06 crore. Reliance Industries remained the most valued domestic firm, followed by Bharti Airtel, HDFC Bank, ICICI Bank, TCS, State Bank of India, Bajaj Finance, LIC, Larsen & Toubro and Infosys.
According to Moneycontrol analysis, the Nifty IT index surged 11.7% posting its biggest weekly gain in 18 years, driven by better-than-expected Q2 earnings. The Nifty Media index jumped more than 6%, while the Nifty Auto index gained 3%. The Nifty Realty and Nifty Defence indices advanced 2.7% and 2.2% respectively, as reported by Moneycontrol. However, the Nifty Healthcare index declined 1%, while the Nifty Pharma and Nifty FMCG indices fell 0.7% and 0.55% respectively. The rally was supported by a stronger Indian Rupee, softer crude oil prices, domestic institutional buying and optimism around a potential India-US trade deal, though the expert noted that the rally remained concentrated in large caps with midcaps posting modest gains while smallcaps largely lagged. As per Moneycontrol, the market capitalisation of BSE-listed companies increased by more than ₹7 lakh crore during the week.
Amol Athawale, VP Technical Research at Kotak Neo, noted that the benchmark indices staged a sharp recovery with the Nifty ending 2.8% higher while the Sensex gained 2,250 points. The technical expert highlighted that the weekly chart has formed a long bullish candle, while the daily and intraday charts continue to indicate an uptrend continuation pattern, which is largely positive. As reported by Moneycontrol, the market found support near the 22,300/71,700 level and rebounded strongly, with the index not only surpassing the 20-day SMA resistance zone but also closing above it, further strengthening the positive outlook. The technical outlook suggests that while volatility may persist, the sharp recovery from recent lows strengthens the case for further upside potential. For the Nifty 50, the 22,980–23,000 zone near the 25-day EMA will act as immediate support, while the 23,300–23,320 zone near the 50-day EMA is likely to act as a hurdle.
According to recommendations from Anand Rathi's Mehul Kothari, the following three stocks are recommended for investors looking to buy under ₹100: Equitas Small Finance Bank with a buy price of ₹70.50, target of ₹75, and stop loss at ₹67; UCO Bank with a buy price of ₹23.75, target of ₹26, and stop loss at ₹22; and Suzlon Energy with a buy price of ₹42, target of ₹46, and stop loss at ₹38. As reported by Live Mint, these recommendations are part of the broader market strategy amid improving momentum and easing selling pressure, with the expert noting that the recommendations are based on technical analysis and market conditions. The latest market data shows that Suzlon Energy emerged among the key gainers in the midcap space, leading the rally with gains of 5-16% alongside other stocks like Tata Elxsi, KPIT Technologies, Waaree Energies, UPL, Havells India, Hero MotoCorp, and Prestige Estates Projects.
