New Delhi, October 26, 2025: The Indian stock markets traded in a narrow range last week, consolidating near their record highs as traders balanced optimism from robust corporate results with caution arising from global economic uncertainties. The BSE Sensex ended the week at around 84,211 points, down 344 points, while the Nifty 50 closed near 25,795, slipping 96 points due to profit booking amid subdued global cues.
Throughout the week (October 20–25, 2025), investor sentiment remained mainly positive, supported by strong Q2 earnings, Foreign Institutional Investor (FII) inflows, and positive macroeconomic data. However, concerns about potential rate hikes by central banks and volatility in global oil prices capped further upside.
Weekly Highlights
- Market Movement: Sensex and Nifty oscillated within a tight range, indicating consolidation after a six-day rally.
- FII Activity: FIIs turned net buyers, investing over ₹10,692 crore in October, showing renewed confidence in India’s growth momentum.
- Sector Watch: IT, auto, and metal stocks outperformed, while FMCG, energy, and pharma sectors saw mild corrections.
- Midcap Index: Nifty Midcap 100 stayed largely flat, indicating rotation of capital toward blue-chip counters.
According to analysts at Motilal Oswal, “The market has entered a consolidation zone after a robust rally over the past month. With Q2 earnings season peaking and global cues uncertain, investors appear to be adopting a ‘wait and watch’ strategy near record levels.”
Key Drivers Behind Market Action
Multiple factors influenced trading patterns during the week — corporate result announcements, foreign investment trends, and movements in the U.S. Treasury yields. The International Monetary Fund’s upgraded outlook projecting India’s GDP growth at 6.6% in FY26 also supported domestic sentiment.
The decline in crude oil prices and a stable rupee added to the strength on the macroeconomic front. Primary market activity remained vibrant, with several IPOs witnessing strong retail subscription, indicating retail participation remained healthy.
Outlook for the Next Week (October 27–31, 2025)
Analysts predict a range-bound but positive bias in trading for the upcoming week. Technical indicators suggest that the Nifty 50 could challenge the 26,000–26,200 resistance zone if buying resumes in banking and IT packs.
Market Forecast Highlights:
- Support Levels: Nifty 25,650, Bank Nifty 57,000
- Resistance: Nifty 26,000–26,200 and Sensex 84,800
- Focus Areas: IT results, U.S. Federal Reserve meeting (Oct 29), and India’s Industrial Production data (Oct 28)
Ajit Mishra, SVP at Religare Broking, commented, “Profit-booking cannot be ruled out, but the decline is expected to be short-lived. FIIs returning strongly and domestic liquidity remain the market’s backbone.”
Top Gainers and Losers of the Week
| Top Gainers | Weekly Change | Top Losers | Weekly Change |
|---|---|---|---|
| Tata Steel | +2.1% | Hindustan Unilever | -3.2% |
| Infosys | +1.8% | Kotak Bank | -1.9% |
| Mahindra & Mahindra | +1.5% | UltraTech Cement | -1.5% |
Expert View: Technical Perspective
According to a technical note from MNCL Research, the markets are showing signs of strength despite global headwinds. The Nifty is trading above its 20-day moving average, suggesting buyer dominance. If it sustains above 25,900, it may enter a breakout phase targeting 26,500.
Volatility Index (India VIX) remained low at 11.59, reflecting investor comfort and reduced near-term risk appetite. However, analysts warn that any spike in global crude or bond yields could trigger short-term corrections.
The Indian share market demonstrated remarkable resilience amid global uncertainties. Analysts believe while consolidation may continue in the short term, the broader market sentiment remains upbeat, powered by strong fundamentals, steady foreign inflows, and a confident corporate earnings season.
