CHENNAI: Indian equity markets witnessed a largely positive but cautious trend during this week (October 20–25), with benchmark indices consolidating near record highs amid mixed global cues, selective profit-booking, and steady domestic momentum.
The BSE Sensex and NSE Nifty 50 oscillated within a narrow band for most of the week, supported by buying in banking, auto, and IT stocks, even as investors booked profits in metals and energy counters. On October 23, the Sensex closed around 84,550, up about 130 points or 0.15 percent, while the Nifty settled near 25,890, up 22 points. However, by October 24, the indices gave up part of those gains as traders turned cautious ahead of the weekend and global trade tensions resurfaced.
Investor sentiment through the week was buoyed by healthy corporate earnings, resilient macroeconomic indicators, and expectations of sustained foreign inflows. Foreign Institutional Investors (FIIs) were net buyers for most of the week, reflecting renewed confidence in India’s growth outlook following positive comments from global institutions such as the IMF, which projected India’s GDP to expand 6.6 percent in FY26. Domestic Institutional Investors (DIIs) also remained active, providing support on dips.
Sectorally, banking and financial services led the gains, helped by improved second-quarter earnings and a recovery in credit demand. IT stocks also advanced on a weaker rupee and strong order inflows from overseas clients. The auto sector extended its rally on robust festive season sales, while fast-moving consumer goods (FMCG) shares showed mixed trends amid concerns about rural demand recovery. On the other hand, metal and energy stocks came under mild pressure as global commodity prices corrected and investors booked profits after recent gains.
Midcap and smallcap indices outperformed the benchmarks, indicating continued retail investor participation despite valuations remaining elevated. Market breadth stayed positive for most sessions, with more stocks advancing than declining on the NSE. Analysts noted that the Nifty’s successful breach of the 25,500–25,850 zone earlier in the month has created a strong support base, although resistance is now seen near the 26,000–26,300 range.
Global cues were largely neutral to slightly negative. Concerns over trade policy frictions and geopolitical developments limited the upside, while expectations of interest rate stability in the US and easing inflation data in major economies offered some reassurance. Domestically, the government’s reaffirmation that it would not rush into any restrictive trade agreements, as stated by Commerce and Industry Minister Piyush Goyal, also influenced investor sentiment, especially in export-oriented sectors.
Liquidity conditions remained comfortable ahead of the Diwali season, and upcoming Muhurat trading on November 1 added a festive undertone to the market. However, lower trading volumes toward the end of the week suggested a degree of consolidation as investors preferred to await fresh triggers from corporate results and global developments.
Overall, the week reflected a phase of steady consolidation for Indian equities after a sustained rally through the previous fortnight. The broader trend remains positive, supported by strong fundamentals, steady earnings, and foreign inflows, though near-term volatility cannot be ruled out. Analysts expect markets to maintain a bullish bias as long as the Nifty holds above the 25,500 mark, with possible short-term resistance around 26,200.
The markets showcased resilience amid global uncertainty, balancing profit-taking with renewed buying interest. The underlying sentiment remains constructive, anchored by optimism over India’s growth prospects and corporate performance, even as investors stay watchful of external risks and valuation pressures.
