- The BSE Sensex closed at 83,939, up by 4.57%, and the Nifty 50 closed at 25,722, up by 4.51% in October 2025, supported by stronger earnings expectations, positive global cues, and renewed FII buying after three months of outflows.
- Investor sentiment was boosted by Q2FY26 results, with around 65% of Nifty companies beating estimates, an upgraded IMF growth forecast of 3.5% for India, and signs of stronger domestic activity.
- Markets also gained from optimism around a potential India–US trade agreement and rising expectations of US Fed rate cuts, global market gains of 3–5%, and softer US inflation at 3.2% YoY, supporting hopes of monetary easing.
- BSE Realty emerged as the top sectoral performer with a 9.2% gain, supported by strong FII interest, festive-season demand, favorable sentiment on interest rates, and lending reforms.
- BSE TECK rose 8.4%, benefiting from global tech rallies, persistent rate-cut expectations, and the Supreme Court’s relief to a major telecom player. supported by easing global yields and strong domestic inflows.
- Foreign and domestic institutional flows strengthened the market, with FIIs turning net buyers at USD 2.1 billion and DIIs adding USD 5.8 billion during the month.
- The advance-decline ratio on the NSE stood at 1,266 advances against 1,805 declines, with 109 stocks remaining unchanged.
- The Nifty’s forward P/E stood at 20-20.5x FY27E earnings, near its long-term average, supported by an expected 12–13% earnings CAGR over FY25–27.
Acknowledgements:
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
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