The week’s sentiment reflected a mix of domestic resilience and global caution. On the domestic front, India’s industrial output rose 4% year-on-year in September 2025, supported by firm manufacturing activity—an improvement from 3.2% growth recorded during the same period last year. Additionally, China’s decision to grant import licenses for rare earth magnets to select Indian firms was viewed as a positive step toward enhancing bilateral trade ties.
On the global front, the U.S. Federal Reserve cut its benchmark interest rate by 25 basis points to a range of 3.75%–4%, but signaled that this may be the final cut for 2025. The commentary weighed on market sentiment by tempering expectations of further near-term easing. Nonetheless, steady corporate earnings and sustained foreign institutional investor (FII) inflows through October provided some support and helped cushion the downside.
Factors that are likely to impact movement when markets reopen this week:
1. Q2 earnings: On the earnings front, several index heavyweights are set to announce their quarterly results, including Bharti Airtel, Titan Company, Adani Enterprises, Adani Ports, InterGlobe Aviation, Mahindra & Mahindra, Paytm, SBI, Britannia, Lupin, Bajaj Auto, and Hindalco Industries.
2. Truncated week: The upcoming holiday-shortened week is expected to remain eventful, with multiple key data releases and major corporate earnings lined up.3. Macroeconomic data: On the macroeconomic front, attention will turn to the final readings of the HSBC Manufacturing PMI, as well as the HSBC Services and Composite PMI data, which will offer cues on domestic growth momentum.4. Global developments: Globally, developments related to trade deals and trends in major international markets will also be closely tracked for directional cues.
5. Technical indicators: After four consecutive weeks of gains, the Nifty witnessed mild profit-taking, signaling a short-term consolidation phase.
“Support now lies near 25,600, coinciding with the 20-DEMA, and further down at 25,400, marked by trendline support. On the upside, resistance is seen around 26,100, and a sustained move beyond this level could open the door for a new record high,” said Ajit Mishra, SVP-Research at Religare Broking.
“Markets are expected to remain range-bound in the near term, with domestic earnings announcements and global macro developments guiding overall sentiment. While mixed global cues may cause short-term fluctuations, supportive factors such as healthy corporate earnings, some consistency in FII inflows, and resilient domestic economic indicators are likely to provide a floor for the market,” he added.
6. Currency moves: The dollar index edged slightly higher near 99.50, adding mild weakness to the rupee. The absence of any concrete progress in the U.S.-India trade deal discussions further weighed on sentiment, maintaining a cautious tone for the currency.
7. FII activity: On Friday, foreign institutional investors (FIIs) recorded net sales of Rs 6,728.08 crore in the Indian equities, while domestic institutional investors (DIIs) were net buyers at Rs 6,889.33 crore.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)