- Summary
- The Sensex rose 438.12 points to close at 71,940.13 while the Nifty 50 gained 148.75 points to end at 22,404.65 on Friday, 16 October 2026, a fourth straight day of gains after negotiators in Muscat announced a framework agreement for a phased end to the US-Iran conflict.
- The Nifty finished the week 5.7% higher, its first weekly gain in nine weeks and the market’s best week since June 2024, with Nifty Bank rising 1.4% to lead the sectors while Metal was the only decliner on profit booking, and HDFC Bank, ICICI Bank and Larsen & Toubro topped the Nifty gainers.
- Infosys closed results week on a high after market hours, beating estimates, raising its full-year guidance and announcing its largest-ever buyback of ₹18,000 crore, while bank stocks rallied ahead of HDFC Bank’s results on Saturday.
- Brent slipped to $92.75 to complete a 17.5% weekly crash, its biggest since March 2020, the VIX fell to its lowest in three weeks, and the rupee closed below 96 for the first time since 24 September.
The Sensex rose 438.12 points, or 0.61%, to close at 71,940.13, while the Nifty 50 ended 148.75 points, or 0.67%, higher at 22,404.65, taking the weekly gain to 5.7% and snapping a nine-week losing sequence.
The flows confirmed the turn. Foreign investors net bought ₹2,110 crore in a fourth straight session of buying, taking the week’s total to ₹10,380 crore, while the Nifty MidCap 100 rose 0.72%, the Nifty SmallCap 100 gained 0.58% and the India VIX eased 5% to 16.30.
Impact on the stock market
Sectoral gainers: Nifty Bank led with a 1.4% rise ahead of the big private bank results, followed by Capital Goods at 1.3% and FMCG at 0.9%, with the recovery now rotating into domestic growth names.
Sectoral losers: Nifty Metal was the only decliner at 0.7%, with Tata Steel and Hindalco easing as traders booked profits after leading the week’s rebound.
| Sector/Index | Performance |
| IT & BPM sector | 3.92% |
| Healthcare sector | -0.26% |
| Oil & Gas sector | -0.45% |
| Real estate sector | -0.33% |
| PSU Bank in India | 0.67% |
Top gainers today
Here are the stocks that delivered the Top gainers in today’s trading session. The table below lists each company along with its share price and percentage change for the day.Â
| Company | Share Price (in ₹) | Change % |
| Tech Mahindra | 1,790.00 | 8.48 |
| TCS | 2,465.00 | 4.89 |
| Infosys | 1,161.20 | 4.61 |
| Bharti Airtel | 1,905.00 | 2.75 |
| M & M | 2,920.90 | 2.07 |
Top losers today
Here are the stocks that saw the Top losers in today’s trading session. The table below lists each company along with its share price and percentage change for the day.Â
| Company | Share Price (in ₹) | Change % |
| Interglobe Aviation | 4,686.90 | -1.91 |
| BSE | 3,363.00 | -1.90 |
| Max Healthcare | 846.00 | -1.40 |
| Tata Consumer | 978.90 | -1.27 |
| Jio Financial | 216.25 | -1.26 |
Market aftermath: Impact on stocks
The Framework Deal: 30 Days, Three Tranches and a Signing Within a Fortnight
The second day of talks in Muscat produced the breakthrough the market had been positioning for, with negotiators announcing a framework agreement under which the US naval blockade will lift in phases over 30 days, tied to inspection access for the International Atomic Energy Agency, while sanctions relief arrives in three tranches. The Strait of Hormuz stays open under multinational monitoring through the implementation period, and a formal signing ceremony is targeted within two weeks. President Trump called it “a tremendous deal” while Iranian President Pezeshkian described “a path to dignity and peace”, and India’s foreign ministry welcomed the agreement as Gulf flight operations fully resumed.
The honest caveat is that a framework is a plan for a deal rather than the deal itself, and implementation risk over the 30-day schedule remains real. Even the sceptics are adjusting, though, with Eurasia Group cutting its odds of the truce collapsing to 20% from the 40% it assigned on Tuesday. For a market that spent two months trading every Gulf headline, a dated timetable with defined milestones is the first genuinely plannable future it has been offered.
Bank Stocks: A 7.4% Week for the Bank Nifty as the Rate Fear Lifts
Financials led the final day of the recovery week, with HDFC Bank rising 2.3% to ₹1,742 ahead of its results on Saturday, 18 October, and ICICI Bank gaining 1.9% before its own report on 25 October. The Bank Nifty rose 1.4% to 54,230, completing a 7.4% weekly gain, its best since July 2022, and a remarkable round trip for an index that broke below its 200-week average only four sessions ago. The rates backdrop drove the move, with the swap market now pricing the RBI on hold through December and the odds of an emergency hike collapsing below 10%.
The analyst stance followed the prices, with Jefferies upgrading its sector view to “constructive” from “cautious” and restoring IndusInd Bank to Buy, a week after cutting it. For HDFC Bank’s results, the street expects net interest income growth of 9-11% year-on-year, a margin around 3.5% and profit of ₹18,200 to 18,600 crore, numbers its mid-week business update already hinted at. After absorbing an insurance commission shock, a rate hike and a record rupee low inside a month, banks enter the weekend as the recovery’s leadership.
Infosys Q2: Raised Guidance and a Record ₹18,000 Crore Buyback
Infosys closed the week’s results calendar after market hours with a beat on every line that mattered, reporting net profit of ₹7,540 crore, up 3.1% sequentially, on revenue of ₹49,110 crore that grew 1.9% from the previous quarter, with the operating margin at 21.3% and large deal wins of $3.8 billion. The headline decisions sat beyond the quarter, with the company raising its full-year constant currency revenue growth guidance to 2.5-3.5% from 1-3%, and announcing its largest-ever share buyback of ₹18,000 crore at a maximum price of ₹1,450. Chief Executive Salil Parekh said the demand environment is “stabilising”.
The stock closed 1.8% higher at ₹1,172 ahead of the announcement, which places the buyback ceiling roughly 24% above the market price. A raised guidance from the company that cut its outlook in July is the sector’s clearest signal yet that the worst of the demand uncertainty is passing. With TCS and Wipro already having beaten estimates, IT’s results season has delivered three for three, and Monday’s reaction will show how much of that was priced into the sector’s September rally.
Crude Oil: A 17.5% Weekly Crash, the Biggest Since March 2020
Oil completed a historic unwinding, with December Brent futures easing 0.9% to $92.75 on Friday evening to finish the week down about 17.5%, the steepest weekly fall since March 2020, while WTI traded at $87.55 and domestic futures on the MCX settled near ₹8,960. The physical normalisation is nearly complete, with the tanker queue at Fujairah cleared, Hormuz transits running at about 85% of pre-war levels and Qatar lifting the force majeure on its LNG shipments. Goldman Sachs responded by cutting its 2027 Brent forecast to $84, and the International Energy Agency said it would hold further reserve releases.
The domestic arithmetic is turning quickly, with oil marketing companies’ margins recovering even as retail fuel prices stay unchanged for now. The forward-looking line came from Nomura, which argued that if Brent sustains near $90, India’s inflation could undershoot the RBI’s 5.2% forecast, reopening the rate-cut debate by March. Two weeks after an emergency hike was a 60% probability, the conversation has moved to cuts, which is the whole month in one sentence.
Conclusion
Friday closed the most dramatic fortnight this market has seen in years with its best week since June 2024, a 5.7% Nifty gain built on a framework deal in Muscat, four days of foreign buying worth ₹10,380 crore and a 17.5% collapse in crude. The leadership tells the story of what comes next, with banks rallying into Saturday’s HDFC Bank results, Infosys raising guidance and returning ₹18,000 crore to shareholders, and the festive season now two weeks from Dhanteras with fuel costs falling. The checkpoints ahead are concrete, including the signing ceremony within a fortnight, the 30-day blockade timetable, and a results calendar that must now justify the rebound. The crisis is not formally over until the signatures land, but for the first time since August, the market’s biggest risk has a schedule rather than a headline.
