Author: Aditya Pareek | EQMint | General News

Mumbai, November 2, 2025 — Indian markets ended the final week of October on a volatile yet positive note, with broader indices outperforming the benchmarks for a second straight week. Gains in PSU banks, oil & gas, and metal stocks offset weakness in private banks, auto, and healthcare sectors, even as persistent foreign institutional investor (FII) selling and mixed corporate earnings kept sentiment cautious.

Despite intermittent profit booking, strong domestic institutional investor (DII) inflows and expectations of a better second half of the fiscal year lent support to the markets.

Broader Markets Extend Outperformance

The BSE Midcap and Smallcap indices rose 1% and 0.7%, respectively, extending their outperformance streak against large-cap peers. However, headline indices ended lower amid volatility. The BSE Sensex fell 273.17 points, or 0.32%, to close at 83,938.71, while the Nifty50 slipped 155.75 points, or 0.60%, to settle at 25,722.10.

Indian markets activity was marked by alternating bouts of profit booking and selective buying, with investors balancing optimism on domestic fundamentals against global headwinds.

FIIs Continue to Sell, DIIs Remain Resilient Buyers

According to exchange data, FIIs sold equities worth ₹2,102 crore during the week, marking yet another phase of foreign outflows. In contrast, DIIs continued their buying spree for the 28th consecutive week, pumping in ₹18,804 crore into Indian markets.

On a month-on-month basis, the intensity of FII selling moderated — foreign investors sold shares worth ₹2,346.89 crore, while DIIs emerged as strong net buyers with ₹52,794.02 crore in purchases.

Indian markets analysts believe that sustained domestic liquidity and robust institutional support have cushioned the market from deeper corrections despite external uncertainties and global fund outflows.

Sectoral Performance: PSU Banks and Metals Lead the Charge

Sectorally, the Nifty PSU Bank index surged 4.7%, extending gains for the second week, supported by reports suggesting a potential hike in foreign investment limits for state-owned lenders. The Nifty Oil & Gas index gained 3%, while Nifty Metal and Nifty Energy rose 2.5% and 1.8%, respectively.

On the flip side, Nifty Healthcare, Auto, and Private Bank indices declined about 1% each, as investors booked profits following recent rallies. Among small-cap gainers, Lancer Containers Lines, Chennai Petroleum Corporation, Hatsun Agro Products, Spectrum Electrical Industries, Blue Cloud, Softech Solutions, Mufin Green Finance, Five-Star Business Finance, and TD Power Systems rose between 20% and 54%.

Meanwhile, Khaitan Chemicals, LE Travenues Technology (IXIGO), Stallion India Fluorochemicals, Cohance Lifesciences, Sadhana Nitrochem, Fino Payments Bank, Dynamic Cables, and Nalwa Sons Investment lost between 10% and 19% during the week.

Market Commentary: “Profit Booking After a Sustained Rally”

Vinod Nair, Head of Research at Geojit Financial Services, said investors took some profits after an extended rally through early October.

“The Indian markets wrapped up the last week of October with profit booking as investors took chips off the table after a sustained rally. PSU banks surged on reports of a potential hike in foreign investment limits, while metals gleamed on renewed optimism after China’s pledge to control steel overcapacity and signs of progress in U.S.-China trade talks,” Nair said.

He noted that SEBI’s proposed changes in the total expense ratio (TER) framework for mutual funds dampened sentiment in capital market stocks.

Nair added that precious metals also experienced sharp corrections due to a strengthening U.S. dollar and profit-booking after recent highs. “Although the Fed delivered an expected rate cut, its hawkish tone and reduced expectations of another cut in December pushed U.S. 10-year yields higher,” he said.

Looking ahead, Nair expects buying interest to emerge on dips, backed by monetary and fiscal support. “Any correction is likely to attract investors, given expectations of stronger growth in the second half,” he added.

Technical Outlook: Key Support and Resistance Levels

Despite near-term volatility, technical experts remain cautiously optimistic on the indian market’s trajectory.

Siddhartha Khemka, Head of Research (Wealth Management) at Motilal Oswal Financial Services, said:

“Indian markets are likely to remain range-bound with a positive bias as investors monitor global developments, fund flows, and upcoming auto sales data for festive season demand cues. Results from SBI, Bharti Airtel, Titan, and Tata Chemicals will also influence sentiment.”

He emphasized that resilient domestic fundamentals — including consistent earnings momentum and robust retail participation — continue to provide downside protection.

Amol Athawale, VP (Technical Research) at Kotak Securities, outlined key levels to watch:

“The 25,700–25,650 zone on Nifty and 83,900–83,700 on Sensex will act as strong support levels. On the upside, resistance is placed at 26,000/85,000 and 26,100/85,300. A decisive breakout above 26,100 could take the market higher toward 26,350 or 86,100. Conversely, a fall below 25,650 may trigger weakness toward 25,450 or 83,100.”

He added that traders should adopt a stock-specific strategy and avoid aggressive leveraged positions until volatility eases.

Hrishikesh Yedve, AVP (Technical and Derivatives Research) at Asit C. Mehta Investment Intermediates, pointed to technical signs of consolidation:

“On the weekly chart, Nifty has formed a shooting star candle, suggesting profit booking at higher levels. However, the index is holding above 25,670 — a crucial support. Sustaining below this level could extend weakness toward 25,400, while 26,100 remains a stiff resistance zone.”

He recommended that investors use any short-term rebounds for partial profit-taking while maintaining long-term allocations.

Outlook: Range-Bound but Positive Bias

Analysts expect the Indian market to remain range-bound with a slight upward bias in the coming week. Global cues, foreign fund flows, and the continuation of the earnings season will likely guide short-term sentiment.

While external headwinds — such as U.S. monetary policy, crude oil volatility, and FII outflows — may keep markets cautious, strong domestic liquidity and robust corporate balance sheets are expected to limit downside risks.

With India’s macroeconomic fundamentals remaining solid and retail participation on the rise, experts believe that any near-term dips could present accumulation opportunities in sectors like banking, infrastructure, energy, and capital goods.

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Disclaimer: This article is based on information available from public sources. It has not been reported by EQMint journalists. EQMint has compiled and presented the content for informational purposes only and does not guarantee its accuracy or completeness. Readers are advised to verify details independently before relying on them.