stock market
The Indian stock market has started picking up its pace again after global tension. The market's main index Nifty 50 had also recently created a new record. It is expected that Nifty will see a rise in the coming time. From expectations of interest rate cut by the US Fed and reduced FII selling to strong domestic earnings and progress in trade talks. These factors may affect the market in the coming days. Let us tell you in detail about the main factors that decide the direction of the market.
US inflation data released on Friday was lower than expected, which has strengthened expectations of a 25 basis point cut in interest rates in the Federal Reserve meeting starting on October 28. Markets are also considering the possibility of further cuts in December and January, indicating a possible shift towards a more dovish stance. Such a move generally benefits emerging markets like India by increasing foreign capital inflows and the risk appetite of investors.
Reports suggest that India and the US are close to finalizing a trade agreement, which has boosted investors' enthusiasm. However, Commerce Minister Piyush Goyal's comment that India will not rush into agreements with strict terms has dampened enthusiasm. A successful agreement could reduce the 50% tariffs currently imposed on Indian exports, half of which are in response to Russian oil imports. Trump's recent comments that India will significantly reduce its Russian oil imports.
Crude oil prices rose 5% after new sanctions by the US and EU on Russian oil companies, raising concerns about a global supply shortage and the risk of rising inflation. Indian refiners are preparing to cut imports of Russian oil to comply with the sanctions. The move could help ease trade negotiations with the US, but could weigh heavily on India's import bill and fiscal position.
Markets are optimistic that the upcoming meeting between President Donald Trump and Chinese President Xi Jinping during Trump's Asia tour could lead to a US-China trade deal. Analysts expect the US to adopt a dovish stance, given China's strategic lead in rare earth minerals and magnets, which are important for global manufacturing.
Investors will keep a close eye on second quarter results, which have so far been better than expectations. The defense sector will take center stage with the announcement of Mazagon Dock and Bharat Electronics Limited (BEL) results, with focus on government orders and new contracts. The Nifty India Defense Index has gained 26% so far in 2025, making it one of the top performing sectors. Other major companies to announce results include Kotak Mahindra Bank, PNB Housing, IOC, Coal India, Adani Power, Dabur, DLF, ITC, Manappuram Finance, BHEL and NTPC.
After months of selling, there have been early signs of stability in foreign investor sentiment. On October 24, 2025, FIIs became net buyers of Indian stocks worth Rs 621 crore, while DIIs remained net buyers of Rs 173 crore. So far this year, FIIs have sold shares worth over Rs 2 lakh crore, while DIIs have bought shares worth over Rs 5 lakh crore, reflecting strong domestic institutional support amid foreign outflows. Any significant change can further strengthen the sentiment in the stock markets.
Indian stock markets fell on Friday, with the Sensex and Nifty snapping a six-day losing streak as the benchmark indices hovered near record highs, prompting investors to book profits. The pause came after a rally driven by expectations of easing global trade tensions and improving corporate earnings.
The S&P BSE Sensex fell 0.41% to 84,211.88, down 344.52 points, while the NSE Nifty 50 fell 0.37% to 25,795.15. Financial sector stocks pressured the benchmarks, with the Nifty Bank index falling 0.7%. The FMCG index declined 0.8%, further weighed down by Hindustan Unilever's 3.3% decline and Colgate-Palmolive (India)'s 2.1% decline as both companies reported disappointing September quarter results.
