Sensex Falls 300 Points, Nifty Slips Below 25,700 as Weak Global Cues Trigger Profit Booking

Sensex Falls Over 300 Points, Nifty Slips Below 25,700 as Weak Global Cues and FII Selling Weigh on Markets

Mumbai, November 3, 2025:
Indian equity benchmarks Sensex and Nifty extended losses on Tuesday amid weak global cues, persistent foreign institutional investor (FII) selling, and profit-booking across key sectors. The cautious sentiment follows muted corporate earnings and global market weakness, prompting investors to remain on the sidelines after a sharp rally in October.

At around 1:30 p.m., the BSE Sensex was down 311.88 points (0.37%) at 83,666.62, while the NSE Nifty50 slipped 102.05 points (0.4%) to 25,661.30. Broader market indices also witnessed mild pressure, though select mid- and small-cap counters managed to hold steady.

Titan, Bharti Airtel Among Top Gainers; Power Grid, Tata Consumer Fall

In the Nifty50 basket, Titan Company, Bharti Airtel, and HDFC Life Insurance emerged as top gainers, rising up to 2%, supported by strong domestic demand and positive brokerage outlooks.

On the other hand, Power Grid Corporation of India and Tata Consumer Products led the laggards, slipping up to 3% amid profit-booking and sectoral rotation. Selling pressure was also visible in metal, banking, and auto stocks, which had recently witnessed strong momentum.

Also Read : SBI Reports 10% YoY Jump in Q2 Profit to Rs.20,160 Crore, Boosted by Yes Bank Stake Sale; NII Up 3.3%

Key Factors Driving Market Decline Today

1. Persistent FII Selling Dampens Sentiment

Foreign Institutional Investors (FIIs) have been on a selling spree, pulling out ₹1,883.78 crore worth of equities on Monday, marking the fourth consecutive session of outflows since October 29. Over the past four trading sessions, FIIs have collectively sold more than ₹14,000 crore worth of Indian equities.

“FIIs’ renewed selling is constraining the market rally. Higher valuations and muted earnings growth in India are prompting global investors to shift towards relatively cheaper markets with better earnings visibility,” said Dr. V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

This trend has also pressured the rupee, which weakened slightly against the U.S. dollar amid risk-off sentiment.

2. Weak Global Cues Trigger Risk-Off Mood

Global markets continued to show weakness, with Asian equities trading lower as investors booked profits following weeks of strong gains led by technology stocks.

South Korea’s Kospi, Japan’s Nikkei 225, and China’s Shanghai Composite all declined between 0.4% and 1.2%, reflecting concerns over the global growth outlook and mixed economic data. U.S. futures were also trading in the red, down nearly 1.1%, signaling a weak start for Wall Street later in the day.

Investors remain cautious amid uncertainty around the U.S. Federal Reserve’s policy trajectory and diverging views among officials on potential rate cuts in December.

3. Modest Q2 Earnings Keep Traders Cautious

The ongoing Q2FY26 earnings season has presented a mixed picture. While banking and financial sectors reported steady performance, the IT and metal segments disappointed, weighing on overall market sentiment.

“Earnings growth remains modest so far, led by stable banking profits and muted IT performance. FY26 may see subdued earnings growth, though FY27 could witness a 15% rebound, which the market may begin to price in over the next few months,” added Vijayakumar.

4. Profit Booking After Recent Rally

After the market’s impressive October run — driven by tax reform optimism, strong domestic inflows, and stabilizing inflation trends — investors are now booking profits, particularly in metal, auto, and banking stocks.

“Markets are witnessing some healthy profit-taking after a sharp rally. The broader construct for domestic equities remains positive, but investors await stronger earnings visibility in the December quarter and more clarity on global trade before scaling new highs,” said Sandip Raichura, Executive Director and CEO – Retail & Distribution at Prabhudas Lilladher, in a note to Reuters.

5. IT Stocks Under Pressure on U.S. Growth Concerns

Major IT stocks like TCS and Infosys slipped up to 1% following weakness in U.S. economic data and uncertainty over rate cuts. The sector, which is heavily reliant on North American demand, has seen muted deal momentum and cautious client spending patterns.

Market experts believe that the upcoming holiday quarter (Q3) could see further softness in technology spending, though margin recovery is likely in the second half of FY26.

6. Volatility Ahead of Nifty Derivatives Expiry

Traders also pointed to volatility ahead of the Nifty’s weekly derivatives expiry, which typically leads to sharp intraday movements as positions are rolled over or squared off.

“While yesterday’s upswing was on expected lines, we do not see momentum picking up unless Nifty crosses 25,927. The index is likely to remain sideways as long as it stays below 25,815, and a break below 25,650 could bring 25,400 back into focus,” said Anand James, Chief Market Strategist at Geojit Financial Services.

Market Outlook: Consolidation Likely Before Next Leg of Rally

Analysts believe the current decline is largely corrective in nature rather than structural, driven by profit-booking and FII outflows. The overall domestic setup remains positive, supported by strong macro fundamentals, healthy retail participation, and robust mutual fund inflows.

“Domestic investors continue to act as a counterbalance to FII selling. Once earnings visibility improves and global volatility stabilizes, we expect markets to regain upward momentum,” said a Mumbai-based fund manager.

In the near term, experts advise investors to stay selective, focusing on quality large-cap stocks and sectors with strong earnings visibility, such as banks, capital goods, and select FMCG names.

• Nifty 50
• Bank Nifty
• Sensex