Indian markets slip after four weeks of gains: Sensex, Nifty close lower

Indian equity benchmarks snapped a four-week gaining streak, closing slightly lower this week as investors locked in profits amid mixed global signals.

The Nifty and Sensex declined 0.65% and 0.55% respectively over the week, settling at 25,722 and 83,938.

Early-week optimism stemmed from strong domestic economic indicators and China’s authorization for select Indian firms to import rare earth magnets. However, sentiment shifted after the U.S. Federal Reserve reduced its key interest rate by 25 basis points to 3.75%-4%.

Ajit Mishra, SVP of Research at Religare Broking Ltd., noted: “India’s industrial production expanded 4% year-on-year in September 2025, driven by robust manufacturing. The Federal Reserve suggested this cut could conclude its 2025 easing cycle, tempering expectations of immediate further reductions.”

Persistent foreign institutional investment flows and stable corporate earnings helped limit losses through October, Mishra added.

Sector-wise performance showed metals, energy, and realty stocks leading gains, while automotive, pharmaceutical, and IT sectors faced sell-offs.

Vinod Nair, Head of Research at Geojit Investments Limited, commented: “PSU banks rallied on speculation about increased foreign investment ceilings, while metal stocks gained from China’s commitment to curb steel oversupply and progress in U.S.-China trade negotiations.”

Capital market stocks retreated following SEBI’s proposal to revamp TER (Total Expense Ratio) frameworks for mutual funds.

Technical analysts identified immediate Nifty support near 25,600, with stronger footing at 25,400. Resistance levels hover around 26,100.

Market participants now await key economic releases in the holiday-shortened week, including final HSBC Manufacturing PMI and Services/Composite PMI figures. Developments in India-U.S. trade negotiations and quarterly results from index heavyweights will also guide market direction.

(With inputs from IANS)