PSU Bank Stocks Jump 7.5% as Sensex and Nifty Post a Third Weekly Gain; Small Caps Outperform on Foreign Buying

State-run bank shares led Indian equities to a third consecutive weekly gain in the holiday-shortened week that ended Friday, Nov. 13, 2026, while mid- and small-cap stocks outpaced the main benchmarks and information technology shares were the main drag. Foreign institutional investors bought heavily throughout the week, even as domestic institutions sold and the rupee weakened.

The BSE Sensex rose 564.43 points, or 0.70%, over the week to close at 81,592.45, and the NSE Nifty 50 gained 113.95 points, or 0.46%, to 25,144.30, Capital Market reported. The broader market did better: the BSE 150 Mid-Cap index gained 2.17% to 16,744.57 and the BSE 250 Small-Cap index climbed 3.04% to 7,030.55. On NSE indices, the Nifty Midcap 100 rose more than 2% and the Nifty Smallcap 100 advanced 3.6%, according to Moneycontrol.

A four-session week

Markets traded for four regular sessions after a one-hour special Muhurat trading session on Sunday, Nov. 8, and were closed on Tuesday, Nov. 10, for the Diwali-Balipratipada holiday. The Sensex added 107.25 points on Monday, then posted the week's biggest move on Wednesday with a 772.75-point rise to 81,879.40 as softer crude oil prices and hopes of de-escalation in the Iran conflict supported sentiment. A marginal gain on Thursday took the Sensex to 81,911.01 and the Nifty to 25,299.35, before both indexes fell on Friday after October retail inflation came in at 6.09%, above the Reserve Bank of India's 6% upper tolerance limit, according to Capital Market.

PSU banks lead, IT lags

The Nifty PSU Bank index was the best-performing sector, rising 7.5% for the week, followed by the Nifty Media index, up 5.2%, and the Nifty Capital Markets index, up 3.8%, Moneycontrol reported. Within the state-run bank group, Punjab National Bank rose 12.8%, Bank of India 11.2%, Bank of Baroda 9.4%, Union Bank of India 8.6% and Punjab & Sind Bank 7.9%, Upstox reported. The Nifty Realty and Pharma indices each gained around 2%.

The Nifty IT index was the main sectoral laggard, falling 3.2% according to Upstox, which also listed the Nifty Metal index as slipping 0.2%. Moneycontrol said Tata Consultancy Services, HCL Technologies and Infosys were among the largest decliners in market value during the week. The total market capitalization of BSE-listed companies rose by about ₹7 lakh crore, with State Bank of India the biggest gainer in value, followed by Reliance Industries, HDFC Bank and Bajaj Finance, according to Moneycontrol. The India VIX volatility gauge fell 11.2% over the week to 15.78, Upstox reported.

Earnings-driven movers

Among mid-cap stocks, Kalyan Jewellers India, PB Fintech, Hitachi Energy India, Bank of India, Motilal Oswal Financial Services and GE Vernova T&D India rose between 10% and 18% during the week, while Page Industries, NHPC, Jubilant FoodWorks, Alkem Laboratories, Cochin Shipyard and Oracle Financial Services Software fell between 3% and 13%, Moneycontrol reported. Kalyan Jewellers surged 18.14% after reporting a 64% year-on-year increase in second-quarter consolidated net profit to ₹427.1 crore, with revenue up 31% to ₹10,322.6 crore, according to Capital Market. Tata Steel reported a 16.2% rise in consolidated net profit to ₹3,700 crore for the September quarter.

In the small-cap segment, Data Patterns (India), Aditya Birla Real Estate, Netweb Technologies India, Navin Fluorine International and Meesho were among the top gainers, while Manappuram Finance, HBL Engineering and Zensar Technologies were among the laggards, Moneycontrol said.

Foreign buying, domestic selling

Foreign institutional investors were net buyers for a third straight week, purchasing equities worth ₹33,342.70 crore, while domestic institutional investors sold for a second week, offloading ₹24,191.81 crore, according to Moneycontrol. Depository data from NSDL showed foreign portfolio investors had invested about ₹84,291 crore in Indian equities so far in November, Upstox reported.

The rupee depreciated 33 paise during the week to close at 94.24 per dollar on Nov. 13, compared with 93.91 a week earlier, trading in a range of 93.61 to 94.94, Moneycontrol reported. Brent crude fell to a low of $90.56 a barrel during the week before closing at $96.13 on Friday, according to Upstox.

Separately, Moody's Ratings this week raised its forecast for India's growth in the 2026-27 fiscal year to 7% from 6.5%, citing resilient consumption, improving investment and the economy's ability to absorb the energy shock, Mint reported. Moody's flagged inflation, a weak monsoon and possible further RBI rate increases as risks.

Week ahead

With the second-quarter earnings season largely over, attention shifts to economic data, Capital Market reported. October wholesale price inflation and merchandise trade figures are due on Monday, Nov. 16; WPI inflation was 11.39% in September and the trade deficit was $30.21 billion. M3 money supply data follow on Wednesday and October industrial production on Friday, Nov. 20. Overseas, investors will watch U.S. retail sales on Tuesday and the minutes of the Federal Reserve's latest policy meeting on Thursday.