Indian equity markets ended the week on a positive note, with the Sensex and Nifty extending their gains for a second consecutive week as foreign institutional buying, corporate earnings and the Reserve Bank of India’s policy stance supported investor sentiment.
The latest weekly market assessment published on August 8 said improving foreign flows and expectations around domestic economic conditions helped maintain a positive tone despite volatility during the week.
FII Inflows Support Indian Equities
Foreign institutional investor activity remained an important factor behind the recent improvement in market sentiment.
After periods of heavy selling earlier in the year, renewed buying interest from overseas investors has provided additional support to Indian equities.
Investors are closely watching whether the return of foreign flows can continue in the coming weeks, particularly as global markets remain sensitive to interest-rate expectations, geopolitical developments and currency movements.
Q1 Earnings Remain in Focus
The ongoing Q1 FY27 corporate earnings season has also played an important role in determining market direction.
Investors are assessing quarterly results for signs of:
- Revenue growth
- Profitability
- Consumer demand
- Corporate spending
- Margin improvement
- Future earnings guidance
Better-than-expected results from some companies have helped offset concerns surrounding valuations and global uncertainty.
RBI Policy Stance Supports Sentiment
The Reserve Bank of India’s recent policy decision has also contributed to the market mood.
The RBI’s policy pause has provided investors with greater clarity around domestic interest rates, while markets continue assessing inflation, economic growth and liquidity conditions.
Lower uncertainty around monetary policy can support equities by improving visibility for companies and investors.
Rupee Extends Weekly Gains
The Indian rupee also strengthened for a second consecutive week.
According to the latest market report, the rupee appreciated 18 paise during the week to close at ₹95.21 against the US dollar.
The currency remains an important indicator for investors because movements in the rupee can influence import costs, inflation, foreign investment flows and the earnings of companies with significant overseas exposure.
Global Factors Still a Risk
Despite the positive weekly performance, investors remain cautious about global developments.
Markets continue to track:
- US monetary policy
- Global trade tensions
- Crude oil prices
- Geopolitical developments
- Foreign capital flows
- Global technology spending
Any major shift in these factors could quickly change market sentiment.
Investors Watch the Next Earnings Cycle
With the Q1 earnings season continuing, investors are expected to focus increasingly on company-specific results rather than relying only on broader market momentum.
Companies reporting strong revenue growth and sustainable margins could continue attracting investor interest, while weak earnings or cautious management guidance could lead to selling pressure.
Outlook for Indian Markets
The second consecutive week of gains provides some relief after periods of volatility in Indian equities.
However, analysts and investors are expected to remain selective as valuations, global risks and earnings expectations continue to influence trading decisions.
The combination of FII flows, corporate earnings, RBI policy and global market sentiment is likely to remain central to the direction of Indian markets in the coming sessions.
Source: Latest market reports published August 8, 2026.
Original Report: Indian benchmark markets extended gains for a second consecutive week, supported by foreign institutional buying, corporate earnings and the RBI’s policy stance.
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