The Nifty index has experienced two consecutive weeks of gains, with a 0.93% increase, while the BSE Sensex rose by 0.86%. The Midcap and Smallcap indices outperformed, with gains of 2.3% and 5% respectively.

Despite Foreign Institutional Investors (FIIs) selling equities worth Rs 5,026.77 crore during the week, there were three days where they were net buyers, breaking a long selling streak.

The government reported a GDP growth of 5.4% for the second quarter, falling short of the expected 6.5%. This raises concerns about a potential economic slowdown, similar to trends seen in the previous quarter. However, analysts believe that these poor economic indicators may lead the Reserve Bank of India (RBI) to consider a rate cut, which could provide some hope for market participants amidst the volatility.