Market Snaps 4-Week Winning Streak; Rupee Weakens to Near Record Low as FIIs Sell and Volatility Rises
The Indian stock market ended October’s final week on a subdued note, snapping its four-week winning streak, as investors booked profits amid mixed corporate earnings, foreign fund outflows, and a weaker rupee. The market’s sentiment was further dampened by the US Federal Reserve’s hawkish tone despite an inline rate cut and ongoing US-China trade developments.
During the week, the BSE Sensex slipped 273.17 points (0.32%) to close at 83,938.71, while the Nifty50 declined 155.75 points (0.60%) to settle at 25,722.10. The broader markets, however, continued to outperform, supported by strong buying in select midcap and smallcap counters.
Large-Caps See Mixed Trend as Earnings and Global Cues Dictate Moves
The BSE Large-Cap Index ended flat, reflecting cautious investor sentiment. Among the top gainers were Adani Green Energy, Indian Oil Corporation, IDBI Bank, Canara Bank, Bharat Petroleum Corporation, and Hyundai Motor India, driven by healthy quarterly performance and sector-specific optimism.
However, the index also saw notable losers, including Vodafone Idea, Dr. Reddy’s Laboratories, Bajaj Holdings & Investment, Adani Power, SBI Cards & Payment Services, Cipla, and SRF, which witnessed selling after profit-booking and muted earnings outlook.
Reliance Industries led the market in terms of market capitalization gains, followed by Tata Consultancy Services (TCS), Infosys, and State Bank of India (SBI). On the other hand, ICICI Bank, Hindustan Unilever, and Eternal lost the most in market value during the week.
Also Read : Broader Market Outperforms as Over 50 Smallcap Stocks Rally Up to 54%
Midcaps and Smallcaps Extend Rally; Over 50 Stocks Gain Up to 54%
Broader indices maintained their upward trajectory, with the BSE Mid-Cap Index rising 1 percent, supported by robust performances from Bharat Heavy Electricals (BHEL), Suzlon Energy, Hindustan Petroleum Corporation (HPCL), Inventurus Knowledge Solutions, UPL, Aditya Birla Capital, PB Fintech, and Steel Authority of India (SAIL).
The BSE Small-Cap Index gained 0.7 percent, extending its rally for the second straight week. Over 50 smallcap stocks delivered strong returns, led by Lancer Containers Lines, Chennai Petroleum Corporation, Hatsun Agro Products, Spectrum Electrical Industries, Blue Cloud, Softech Solutions, Mufin Green Finance, Five-Star Business Finance, and TD Power Systems, which jumped between 20–54 percent.
Meanwhile, laggards included Khaitan Chemicals and Fertilizers, LE Travenues Technology (Ixigo), Stallion India Fluorochemicals, Cohance Lifesciences, Sadhana Nitrochem, Fino Payments Bank, Dynamic Cables, and Nalwa Sons Investment, which fell 10–19 percent during the week.
Sectoral Highlights: PSU Banks and Metals Outperform Amid Volatility
On the sectoral front, Nifty PSU Bank Index topped the charts, soaring 4.7 percent on reports of a potential FDI limit hike in public sector banks. The Nifty Oil & Gas Index advanced 3 percent, Nifty Metal rose 2.5 percent, and Nifty Energy gained 1.8 percent.
However, defensive sectors saw mild selling pressure, with Nifty Healthcare, Auto, and Private Bank indices slipping around 1 percent each as investors rotated into cyclical plays ahead of key macro data.
Vinod Nair, Head of Research at Geojit Financial Services, noted that the markets entered a phase of healthy profit-booking after a sustained uptrend.
“PSU banks rallied on expectations of higher FDI limits, while metals gained on optimism after China’s move to address steel overcapacity and signs of progress in US-China trade talks. However, SEBI’s proposal to restructure TER norms impacted capital market-linked stocks,” Nair said.
FII Outflows Continue, but Domestic Investors Provide Support
Despite foreign fund selling, domestic investors continued to lend stability to the market. Foreign Institutional Investors (FIIs) sold equities worth ₹2,102 crore during the week, marking the 28th straight week of outflows, while Domestic Institutional Investors (DIIs) remained strong buyers, purchasing equities worth ₹18,804 crore.
On a monthly basis, the selling pressure from FIIs eased. In October, FIIs sold equities worth ₹2,346 crore, whereas DIIs bought equities worth ₹52,794 crore, highlighting consistent domestic support amid global uncertainties.
Rupee Weakens to Near Record Low as Dollar Strengthens
The Indian rupee lost ground against the US dollar, erasing the previous week’s gains to end near a record low of ₹88.77 per dollar on October 24, down 91 paise from its prior close of ₹87.85. During the week, the rupee traded in a narrow range of ₹87.85–₹88.78, weighed down by foreign outflows, rising US Treasury yields, and a stronger greenback globally.
Currency analysts expect the rupee to remain under pressure in the near term amid global risk aversion and elevated crude oil prices, though resilient domestic inflows could cap sharp depreciation.
Market Outlook: Range-Bound Moves Likely Amid Global Headwinds
Looking ahead, analysts anticipate the market to remain range-bound with a slight positive bias, as investors track global developments, corporate earnings, and macro data releases.
Technical experts expect Nifty support around 25,650–25,700 and resistance near 26,000–26,100. A decisive move above resistance could fuel a rally toward 26,250, while a breach below key support may trigger profit-booking.
Despite near-term volatility, analysts maintain that India’s domestic growth story remains strong, underpinned by healthy consumption trends, improving liquidity, and steady institutional support — setting the stage for a resilient second half of FY26.
