November 4, 2025

Indian stock markets started November on a softer note Monday, snapping the sizzling rally of October. The S&P BSE Sensex dropped 258 points (0.31%) to open at 83,680.70, while the NSE Nifty 50 slid 60.50 points (0.24%) to 25,661.60. What slowed down this party? Private banks and fast-moving consumer goods (FMCG) stocks showed signs of weakness, pulling the mood down. On the Sensex list, big names like Maruti Suzuki, Bharat Electronics Ltd., Titan, Adani Ports, and Axis Bank tumbled between 1% and 3%. The private bank index slipped 0.3%, as did the FMCG sector. But it wasn’t all gloom—Public Sector Undertaking (PSU) banks rose 1.7%, small-caps climbed 0.6%, and mid-caps gained 0.2%. Shriram Finance stole the limelight, jumping 4.6% after reporting a rise in quarterly profit, making it the top Nifty 50 gainer. Experts weigh in: Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said, "Profit booking and FIIs again turning sellers prevented continuation of the rally to record highs." He added, "The FII strategy of selling in India on rallies and moving money to other better performing markets has paid them rich dividends, they can be expected to continue the same strategy now also. A change in this scenario will happen only when we have leading indicators suggesting a smart turnaround in India’s corporate earnings." About trade outlook, Vijayakumar noted, "The Trump - Xi Jinping summit delivered only a temporary truce in the US-China trade war, not a trade deal. The implications of this on a possible US-India trade deal remain to be seen." But he was optimistic on autos, saying, "A significant trend in the industry is the sustained demand for automobiles, particularly small cars, which is turning out to be better than the optimistic expectations. Auto shares will remain resilient." On the technical side, Shrikant Chouhan, Head Equity Research at Kotak Securities, explained, "During the last week, the market once again faced resistance near 26,100/85,300 and reversed sharply." He described a "double top-like pattern" on daily charts and a "shooting star formation" weekly charts, signaling possible weakness. But he still kept hope alive: "The short-term market outlook remains positive. We believe that the 25,700–25,650/83,900-83,700 zone will act as a crucial support level for traders, while 26,000/85,000 and 26,100/85,300 could serve as key resistance areas for the bulls." Institutional action showed Foreign Institutional Investors (FIIs) sold equities worth over Rs 6,769 crore on October 31, while Domestic Institutional Investors (DIIs) bought Rs 7,068 crore. Still, for October as a whole, FIIs were net buyers to the tune of Rs 8,524.5 crore, reversing three months of selling. Around the globe, Asian stocks inched up 0.2% as investors digested big earnings focused on AI spending. Japan’s markets stayed closed for a holiday. In the U.S., Fed officials showed mixed views on rate cuts; Chairman Jerome Powell said another cut in December was "not a foregone conclusion." Traders see a 69% chance of a December cut now, down from almost certain before last week. Commodities saw gold slide 0.4% to $3,985.35 an ounce, retreating from record highs. But oil prices surged thanks to OPEC+ delaying production increases for early next year. Brent crude futures rose 47 cents to $65.24 a barrel, and U.S. West Texas Intermediate climbed 45 cents to $61.43 a barrel. The Indian rupee lost 7 paise to 88.77 against the U.S. dollar, hit by higher crude prices and foreign capital outflows amid shaky global trade hopes. The dollar index eased slightly but stayed near three-month highs due to the Fed's hawkish vibes. All eyes remain on corporate earnings, trade deals, and global market moves as India’s stock market seeks the next big burst of energy.

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Tags: Sensex, Nifty, Indian stock market, Fii, Auto sales, Opec Production,