Market Wrap: Sensex, Nifty Extend Rally on IT Earnings as Rupee Rebounds Sharply; Wall Street, Asia Rocked by AI Debt Fears; Crude Surges Past $100, Oil Markets Roar
It was a week defined by a tale of two trades: a brutal AI-financing scare that rattled Wall Street and Asian tech stocks, and a surging crude oil market that posted its strongest weekly gains in months. Against this volatile global backdrop, Indian equities stood out as a rare bright spot, extending a sharp recovery rally on the back of strong IT earnings and a powerful rebound in the rupee — a welcome turnaround after a punishing eight-week losing streak earlier in October.
Indian Markets: Sensex, Nifty Extend Rally for Second Straight Week on IT Earnings Boost
The BSE Sensex closed Friday's session at 74,729.27, up 413.66 points or 0.56%, while the NSE Nifty 50 gained 148.80 points, or 0.65%, to settle at 23,146.15. For the week, the Sensex surged 2,256.94 points, or 3.11%, while the Nifty jumped 625.7 points, or 2.77%, marking a second consecutive week of strong gains that helped claw back a meaningful chunk of the losses from an earlier eight-week losing streak, which had dragged the Sensex down to a 2026 low near 71,910 by October 1 amid two-decade-high US Treasury yields, heavy foreign investor outflows and elevated crude prices.
The turnaround this week was powered almost entirely by IT earnings. Tech Mahindra surged as much as 8.45% after posting a 32.7% year-on-year jump in September-quarter net profit to ₹1,585.6 crore, while TCS, Infosys and HCL Technologies all rallied strongly on robust quarterly results, lifting the Nifty IT index roughly 8% over three sessions. A softer tone in crude oil mid-week, continued domestic institutional buying, and a sharp rebound in the rupee added further support, even as foreign institutional investors remained net sellers for parts of the week.
Asian Markets: Kospi Suffers Worst Week Since 2008 as AI Debt Fears Spark Violent Swings
Asian markets endured one of their most volatile weeks in years, triggered by a global sell-off in AI-linked stocks after concerns emerged over the debt financing underpinning cloud-computing company CoreWeave, whose bonds briefly traded at distressed levels. South Korea's Kospi, the region's most AI-exposed index, ended the week down a staggering 14.5% — its worst weekly performance since October 2008 — even after jumping 2.05% on Friday to 5,668.05 in a relief rally. Index heavyweights Samsung Electronics and SK Hynix tumbled nearly 20% and 25% respectively over the week, hit by both the AI financing scare and fears of intensifying Chinese competition in memory chips; a circuit breaker was triggered on Thursday amid the rout.
Japan's Nikkei 225 closed Friday up 1.39% at 65,324.29, clawing back some of Thursday's near-5% plunge, while Hong Kong's Hang Seng gained around 1.2% to close near 24,354, and China's Shanghai Composite rose about 1% to 3,742.66. Adding to the region's turbulence, Indonesia's stock market plunged roughly 11% during the week after index provider MSCI warned it could downgrade the country from "emerging market" status, triggering fears of a capital flight.
US Markets: Nasdaq, S&P 500 Post Worst Week Since June on AI Sell-Off; Dow Bucks the Trend
US equities closed a turbulent week sharply divided. The S&P 500 fell 1.09% on Friday to 7,659.44, the Nasdaq Composite dropped 2.14% to 26,140.03, and the Dow Jones Industrial Average slipped 0.34% to 52,002.41. For the week, the S&P 500 declined around 1.9-2%, and the Nasdaq tumbled 4.48% — its worst week since June, snapping a four-week winning streak — while the Dow managed a 0.67% weekly gain, its second straight, as capital rotated out of tech into more defensive sectors.
The driving force was a broad sell-off in AI and chip-related names: semiconductor stocks AMD and Intel fell nearly 6% each on Friday alone, and the Philadelphia Semiconductor Index (SOX) declined for an eighth consecutive session — its longest losing streak since 2006 — as European chipmakers ASML, ASM International and Infineon were also hit hard following disappointing commentary from AI players. Adding to investor unease, Federal Reserve Governor Kevin Warsh suggested the central bank was entering "a new chapter," fueling speculation about a shift in the Fed's approach, even as he argued the AI boom could ultimately deliver substantial benefits to the economy.
Crude Oil: Brent Nears $110, WTI Tops $100 in Powerful Weekly Rally
Oil markets staged a dramatic surge this week. Brent crude settled Friday at $109.86 a barrel, up 3.72% on the day and around 5% for the week, while WTI crude settled at $101.41, up 3.51% on the day and a remarkable 10.41% for the week — its strongest weekly performance in months, decisively crossing the $100 mark. The rally was driven by intensifying Middle East supply fears, fresh US sanctions designating 17 vessels and 17 companies tied to "shadow fleet" oil shipping, a larger-than-expected US crude inventory drawdown, and continued diesel shortages, even as governments moved to release emergency reserves to cool prices.
Gold and Silver Prices in India Today
Gold held in a relatively stable range in India this week, even as the AI-driven equity sell-off briefly sparked a flight into government bonds rather than bullion. As of today:
- 24-carat gold: approximately ₹14,744-15,170 per gram (around ₹1,47,440-1,51,700 per 10 grams)
- 22-carat gold: approximately ₹13,515-13,966 per gram
- 18-carat gold: approximately ₹11,058-11,434 per gram
- Silver: approximately ₹2,30,000-2,40,000 per kilogram
Gold is roughly flat to marginally higher for the week but remains down close to 3% from its September highs. Prices vary by city due to local levies and making charges, with Chennai, Hyderabad and Kerala typically carrying a modest premium. These figures exclude GST and other applicable charges — given the volatility across sources this week, it's worth checking a live rate before publishing.
Rupee and Currency Markets
The Indian rupee staged a powerful recovery this week, strengthening by roughly 178 paise, or close to 2%, to around ₹94.95-95.24 against the US dollar by Friday, compared with about ₹96.73 just a week earlier. The rebound was supported by improving risk sentiment tied to the IT-led equity rally, easing FII outflow pressure, and active RBI support through the week, even as the currency had touched a low of ₹96.99 during the earlier eight-week market slide.
Against other major currencies, the rupee stood at approximately:
- 1 US Dollar (USD) ≈ ₹95.1
- 1 Euro (EUR) ≈ ₹106.9
- 1 British Pound (GBP) ≈ ₹126.7
- 100 Japanese Yen (JPY) ≈ ₹60.2
Outlook
With crude oil prices surging on supply fears and AI-linked stocks remaining a source of acute volatility across Wall Street and Asia, global markets face a genuinely mixed set of crosscurrents heading into next week. For India, the key question is whether this week's IT-earnings-led rally and rupee rebound can be sustained once the broader Q2 earnings season moves beyond technology into other sectors, while globally, investors will be watching closely for further developments around CoreWeave's debt situation and any additional Fed commentary following Governor Warsh's remarks. The sharp divergence between Kospi's worst week since 2008 and the Dow's second straight weekly gain underscores just how unevenly the AI-financing anxiety is being priced across markets.
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Note: Intraday prices for gold, silver, currencies, and crude fluctuate through the trading session — figures above reflect rates as reported through Friday, October 16, 2026, and should be verified.