Q3 FY 2026 was a quarter that tested the “patience” in momentum investing before rewarding it with a spectacular year-end flourish. After a muted Q2 where the Nifty struggled under the weight of global tariffs, the third quarter began with a continuation of that somber mood.
Nifty 50 touched lows of 24605 at the start of October as the market grappled with the reality of a stronger Dollar and high interest rates. However, the narrative shifted dramatically in the final six weeks of the year. A “Santa Rally” fueled by the stabilization of GST 2.0 and a temporary truce in global trade rhetoric propelled the Nifty to close the quarter at 26,129—a gain of approximately 6.2% for the quarter, reclaiming more than the ground lost in the previous quarter
The global backdrop remained a cocktail of volatility and opportunity. While the U.S. markets continued their ascent, the “India Resilience” story took center stage as domestic institutional flows finally overwhelmed the FII selling pressure. Silver and Gold shone bright with a 53% and 12% move this quarter
Sectoral Performance: The Great Rotation The sectoral landscape saw a massive reshuffle. The Energy and PSE (Public Sector Enterprises) sectors, which had been laggards in the previous quarter, staged a massive comeback as value-buying emerged. Pharma and FMCG acted as the defensive anchors during the October volatility. Surprisingly, the IT sector, despite visa concerns, showed immense grit as enterprise spending in AI began to reflect in mid-cap IT earnings. Autos cooled off a bit but Metals, the stars of Q2, continued the journey forward hitting new highs.
Weekendinvesting Strategy Performance and our broader suite of products, this quarter was a masterclass in the “self-healing” nature of momentum.
Mi Evergreen continued its streak of consistency, benefiting from its balanced exposure as Gold stabilized and Equities surged.
Mi 20 and Mi 35 saw a sharp “V-shaped” recovery in December, as the momentum filters exited laggards in the export space and rotated into domestic PSE and Energy names.
The newly launched Asset Allocation strategies proved their worth, protecting downside during the October dip and ensuring participation in the December rally.
Our philosophy of BBC (Bhav Bhagwan Che) remains our North Star. While discretionary managers were busy predicting the impact of global trade deals, our systems simply followed the price. When the price broke out in November, we were positioned to ride it. This non-discretionary approach is why we have survived and thrived for over 8 years.
Looking Ahead: The Forecast As we head into Q4 FY 2026, the outlook is one of “Optimistic Vigilance.” The total reset of global supply chains is still underway, but Indian corporates have shown remarkable agility in navigating these shifts. We expect the Nifty to find strong support at the 25,500 levels, with an eye on the 27,500 mark if the Union Budget (upcoming in Feb) provides the necessary catalysts for private capex.
New Initiatives & Updates
AIF Launch: We are thrilled to announce that the Weekendinvesting Alternative Investment Fund (AIF) is now officially open for onboarding for our HNI partners. This pooled vehicle is designed for those seeking professional management with the same momentum rigor we are known for.
US Portfolios: Our US strategy on Vested has outperformed the S&P 500 this quarter, capturing the tech-led rally with precision.
Content: Our YouTube “Daily Byte” and the new “Momentum Deep-Dives” in the newsletter continue to see record engagement. We believe an educated investor is a disciplined investor.
We have entered the final quarter of the fiscal year with high conviction and strategies that are “fired up.” Momentum is back in favor, and as long as the price continues to tell a story of growth, we will be there to ride it.
Stay disciplined. Stick to the plan.
Team Weekendinvesting
