Profit Booking Drags Markets Lower; Sensex Falls 400 Points, Nifty Slips Below 25,900

Sensex Falls 310 Points, Nifty Slips Below 25,900 Amid Profit Booking; Metal Stocks Shine

Mumbai, October 28, 2025: The Indian stock market witnessed a volatile session on Tuesday as benchmark indices slipped into the red, weighed down by profit booking across key sectors. After starting the day on a cautious note, the Sensex declined 310 points, while the Nifty50 fell below the 25,900 mark, signaling consolidation after the recent rally.

At 2 p.m., the BSE Sensex was down 395.88 points, or 0.47%, at 84,382.96, while the NSE Nifty50 lost 92.80 points, or 0.36%, to trade at 25,873.25. Market participants attributed the weakness to broad-based profit booking, foreign institutional investor (FII) selling, and a softer rupee.

Broader Market Mixed; Metals and PSU Banks Offer Some Relief

While frontline indices struggled, metal stocks managed to shine amid a weak broader market. The BSE Metal Index outperformed all other sectors, supported by strong global commodity prices and renewed buying interest in steel and mining companies.

Tata Steel, Hindalco Industries, JSW Steel, and Eicher Motors emerged as top gainers on the Nifty50 index. On the other hand, Bajaj Finserv, ICICI Bank, Tech Mahindra, Bajaj Finance, and Titan Company were among the key laggards, falling up to 2%.

The BSE Midcap and Smallcap indices traded flat, suggesting stock-specific action rather than a sector-wide move.

Also Read : Tata Steel, Jindal Steel Lead Gains in Metal Stocks as US-China Trade Progress Fuels Optimism

Chennai Petroleum Corporation Hits 1-Year High

In stock-specific action, Chennai Petroleum Corporation Limited (CPCL) surged over 8.7%, touching its highest level in a year. The stock was quoting at ₹837.00, up ₹67.50, or 8.77%, after hitting an intraday high of ₹838.80 and a low of ₹765.70.

The counter witnessed a remarkable spike in trading volumes, with 708,253 shares changing hands compared to its five-day average of 101,929 shares—an increase of nearly 595%.

Currently, the stock trades 2.56% below its 52-week high of ₹858.95 (recorded on October 7, 2025) and 93% above its 52-week low of ₹433.20 (on March 3, 2025). Its market capitalization now stands at ₹12,463.88 crore, reflecting renewed investor confidence in the company’s refining margins and operational efficiency.

PSU Banks Outperform; Indian Bank and Bank of Maharashtra Lead Gains

Amid overall market weakness, the Nifty PSU Bank Index gained nearly 1%, led by strong buying in select state-run lenders. Indian Bank rose 2.07% to ₹842.95, followed by Bank of Maharashtra (up 1.87%) and Punjab & Sind Bank (up 1.86%).

Heavyweights such as SBI, Union Bank, and Canara Bank also traded higher, reflecting investor optimism about improving credit growth and asset quality in the public sector banking space.

Key Factors Behind Market Decline

1. FII Selling Pressure

Foreign Institutional Investors sold equities worth ₹55.58 crore on Monday, adding pressure to domestic markets. Persistent FII outflows tend to dampen investor sentiment, especially when benchmark indices approach record highs.

2. Profit Booking Across Sectors

After a series of gains in recent sessions, traders resorted to profit booking in sectors such as banking, financial services, FMCG, IT, and realty.

“We are seeing some profit booking across asset classes in India. Nifty is facing resistance as it hovers close to all-time highs,” said Aamar Deo Singh, Senior Vice President at Angel One.

3. Rupee Weakness

The Indian rupee depreciated 21 paise to ₹88.40 against the US dollar due to rising crude oil prices and strong dollar demand from importers. Market participants are also cautious ahead of the US Federal Reserve’s policy decision on Wednesday.

4. Volatility Rises

The India VIX, a key measure of market volatility, climbed 5% to 12.50, suggesting increased caution among short-term traders.

5. Nifty Monthly Expiry

Tuesday’s session also coincided with the monthly expiry of Nifty derivatives contracts, which often leads to heightened volatility as traders unwind or roll over positions.

6. Global Crude Oil Prices Edge Higher

The Brent crude oil benchmark was trading marginally higher at USD 65.65 per barrel, keeping energy importers on alert and adding mild inflationary pressure.

Technical View: Nifty Faces Resistance Near 26,000

According to Anand James, Chief Market Strategist at Geojit Financial Services, the Nifty’s inability to cross the 25,940–26,000 zone indicates short-term resistance.

“A decisive breakout above 26,000 may extend the uptrend, while a fall below 25,900 could weaken momentum,” he noted, adding that a deeper correction toward 25,590–25,400 remains unlikely for now.

Market Outlook

Market analysts expect the short-term trend to remain range-bound, with global cues, FII flows, and Fed policy signals dictating near-term movement. While metals and PSU banks may continue to find buyers, profit booking in large-cap financials and IT stocks could keep indices under pressure.

Investors are advised to remain selective, focusing on sectors showing earnings visibility and strong balance sheets, as the market consolidates near record levels.

• Nifty 50
• Bank Nifty
• Sensex