After a six-day winning run, Indian equity markets took a breather on Friday as investors booked profits at higher levels amid renewed concerns over global
trade talks and a sharp uptick in crude oil prices. The Sensex dropped 344.52 points (0.41 per cent) to close at 84,211.88, while the Nifty 50 slipped 96 points (0.37 per cent), ending the session at 25,795.15. Broader indices also lost ground but managed to outperform the benchmarks. The BSE Midcap index fell 0.25 per cent, and the Smallcap index eased 0.19 per cent, reflecting mild weakness across segments. Sectoral Performance: Metals Shine, Banks And FMCG Drag Market activity was largely negative across sectors, with the exception of Nifty Metal and Nifty Realty, which ended the day in positive territory. The metal index advanced 1.03 per cent, and the realty index edged up 0.18 per cent. On the other hand, Nifty Private Bank, FMCG, and PSU Bank were among the biggest laggards, shedding 0.81 per cent, 0.75 per cent, and 0.74 per cent, respectively. “Strong Diwali sales uplifted consumer and retail sectors, while easing U.S.-China trade tensions, with a confirmed leaders’ meeting next week, bolstered export-driven sectors like IT and base metals. PSU banks also rallied 2.3 per cent, supported by robust quarterly results. The Indian rupee’s second consecutive week of gains against the dollar, appreciating by 0.2 per cent, further enhanced investor confidence by easing import cost pressures. However, rising global crude oil prices, with Brent crude climbing nearly 8 per cent weekly due to geopolitical tensions, sparked concerns over inflation and input costs, particularly for oil-dependent sectors. Profit booking intensified on Friday as investors locked in gains amid cautious India-US trade talks, with India prioritising flexible terms. Despite the late dip, small- and mid-cap indices rose 0.7 per cent and 0.6 per cent, reflecting market resilience. On the institutional front, FIIs turned net buyers, infusing Rs 342.74 crore in equities, while robust DII inflows of Rs 5,945 crore offered strong support, reinforcing the market’s overall bullish undertone,” said Puneet Singhania, Director of Master Trust Group. Global Cues And Macro Factors In Focus Investor caution also stemmed from a mix of international and domestic triggers. The US Federal Reserve is scheduled to meet on October 28–29, with market participants widely expecting a rate cut to support borrowing and growth. Back home, attention will turn to Q2FY26 earnings, with major companies including Kotak Mahindra Bank, IOC, TVS Motor, L&T, ITC, Cipla, Dabur, Maruti Suzuki, and ACC set to announce results. Analysts believe these updates will set the tone for market direction ahead of the festive quarter. Trade Talks And Commodity Moves Add To Volatility Market participants are also keeping an eye on developments related to the US–China presidential meeting, expected to ease trade tensions, while reports suggest that India and the U.S. are close to finalising a bilateral trade deal. Meanwhile, the commodities market saw notable corrections. Gold futures on the MCX fell by Rs 3,557 (2.80 per cent) over the week to Rs 1,23,451 per 10 grams, while silver slumped Rs 9,134 (5.83 per cent) to Rs 1,47,470 per kg. The drop followed a nine-week winning streak, as a stronger dollar and easing geopolitical risks triggered profit booking. Outlook For The Upcoming Week “Nifty achieved a 13-week high this week, closing positive with a 0.33 per cent gain and forming a doji candle on the weekly chart, signalling indecision as profit booking emerged on Friday. This marks the fourth consecutive weekly rise for the index, which remains above its 21-day and 55-day EMAs—indicating sustained bullish momentum. The MACD indicator is also positive, supporting the ongoing uptrend. Technically, resistance is seen near 26,000, where a successful breakout could propel Nifty to all-time highs around 26,300. On the downside, the 25,400-25,500 zone is a critical support area, providing strong buying opportunities on dips and maintaining a favourable risk-reward setup for positional traders and investors,” Singhania noted. “Bank Nifty touched a new all-time high of 58577.50 this week but trimmed gains by the close, forming a doji candle on the weekly chart and signalling short-term indecision. However, the index continues to trade above its 21-day and 55-day EMAs, highlighting sustained bullish momentum. It also holds firmly above the previous consolidation breakout zone. Immediate support is placed near 57400, with a further cushion at 57000. The MACD remains in positive territory, reinforcing the upward bias. On the upside, resistance is seen around 58200, and a decisive breakout could open a path toward 58700. Overall, the structure remains constructive, favouring a disciplined buy-on-dips approach,” he added.
