It was a difficult week for the stock market, as the Sensex and Nifty both saw sharp drops. The Nifty and Sensex, the two main indexes, fell 2.7% and 2.2%, respectively.

With the release of robust Purchasing Managers’ Index (PMI) data and a robust economic growth prediction by the Reserve Bank of India (RBI) for FY25, domestic dynamics are generally favoring the market going ahead, according to market analysts on Saturday.

Faster rises in factory output and service activity helped India’s manufacturing sector restore its growth momentum in October. According to S&P Global’s most recent HSBC “flash” PMI survey, India’s private sector economy continued to develop well in October.

Investors and traders had difficulties this week due to a widespread sell-off in the markets, which saw the Nifty close below 24,200 after two weeks of stability, down more than 2.65%.

“October has been especially difficult; so far, the benchmark has down more than 6%. Individual equities took the brunt of the damage, especially the mid-cap sector, which has seen a precipitous drop in recent weeks, according to Rajesh Bhosale, an equity technical analyst at Angel One.

The sharp decline in mid-caps has been the week’s main emphasis, but given the holiday season, some targeted positive traction may surface. Additionally, experts encourage long-term investors to think about purchasing excellent stocks in phases from these levels.

Because of the continuous geopolitical tensions and FIIs’ impulsive response, investor psyche became rather pessimistic.

According to market analysts, the absence of triggers in the domestic market and the FIIs’ persistent selling may have an effect on the market’s attitude in the short term.

Nonetheless, recent manufacturing data’s durability points to the likelihood of an economic rebound in H2 FY25, which ought to motivate investors to buy high-quality equities.

“The market will be supported by a moderation in valuation, a pickup in earnings in H2 FY25, and the expectation of an RBI rate cut in 2025.” Consumption, FMCG, infrastructure, new generation businesses, manufacturing, and chemicals are sectors to keep an eye on, according to experts.

Friday saw the Sensex drop 662.87 points, or 0.83 percent, to settle at 79,402.29. Meanwhile, the Nifty dropped 218.60 points, or 0.9%, to 24,180.80.