Markets closed lower for the second consecutive session on Thursday, with the Nifty 50 breaching its critical 20-day exponential moving average amid persistent foreign institutional investor selling and broad-based profit booking. The Nifty declined 87.95 points or 0.34 per cent to close at 25,509.70, while the Sensex fell 148.14 points or 0.18 per cent to settle at 83,311.01.
The decline was driven by sustained FII outflows, with foreign investors selling ₹1,067 crore on November 4, taking their 2025 net outflows to nearly ₹1.49 lakh crore. “Foreign investors sold ₹1,067 crore on November 4, taking their 2025 net outflows to nearly ₹1.49 lakh crore,” said Abhinav Tiwari, Research Analyst at Bonanza. However, domestic institutional investors remained the key support, buying ₹1,203 crore and cushioning the fall.
The broader markets underperformed significantly, with the Nifty Midcap 100 declining 0.95 per cent to 59,468.60 and the Nifty Smallcap 100 falling 1.39 per cent. The Nifty Next 50 was down 1.24 per cent to 69,299.55. Market breadth was decisively negative, with 3,086 stocks declining against 1,142 advances on the BSE, while 173 stocks hit 52-week lows, compared to 124 that touched 52-week highs.
Broader market pain
Sectoral performance was largely mixed, with metals leading the losses. The Nifty Metal index shed over 2 per cent, dragged down by Grasim, which plunged 6.42 per cent to ₹2,697.00, and Hindalco, which dropped 5.39 per cent to ₹786.55. Adani Enterprises fell 4.50 per cent to ₹2,311.00, while Power Grid declined 3.15 per cent to ₹270.25 and Eicher Motors slipped 2.62 per cent to ₹305.30. The Nifty Bank closed 0.47 per cent lower at 57,554.25, while the Nifty Financial Services declined 0.60 per cent to 27,033.10.
On the positive side, Asian Paints emerged as the top gainer, surging 4.64 per cent to ₹2,602.10, followed by Reliance Industries, which rose 1.47 per cent to ₹1,494.80. UltraTech Cement gained 1.04 per cent to ₹11,942.00, Mahindra & Mahindra advanced 0.95 per cent to ₹3,615.10, and Wipro climbed 0.90 per cent to ₹240.05. The IT and Auto sectors bucked the trend, recording marginal gains.
Analysts cautious ahead
“Volatility dominated the domestic market, with broad-based profit booking seen amid continued FII outflows, despite supportive Asian market,” said Vinod Nair, Head of Research at Geojit Investments Limited. “Early optimism from the inclusion of four Indian companies in the MSCI Global Standard Index and strong U.S. macro data was offset by weak domestic PMI readings, indicating softening sentiment.”
Rupee, gold edge up
The rupee traded slightly higher at 88.60, gaining 0.09 paise, supported by weakness in the dollar index, which slipped below 100. “Rupee traded slightly positive at 88.60, gaining 0.09 paise, supported by weakness in the dollar index, which slipped below the 100 mark. However, persistent FII selling limited the rupee’s upside momentum,” said Jateen Trivedi, VP Research Analyst at LKP Securities.
In commodities, gold traded higher, gaining ₹660 to ₹1,21,200 per 10 grams, supported by a weaker dollar index. “Gold traded positive with gains of ₹660 at ₹1,21,200 per 10 grams, supported by a weaker dollar index below 99.80. Comex gold also saw renewed buying momentum near $4,010, up by around $30,” Trivedi added.
Technical analysts highlighted the weakness in market structure. “The Nifty struggled to sustain above the 25,660 mark, reflecting signs of fatigue and a cautious undertone among investors,” said Ponmudi R, CEO of Enrich Money. “Key support now lies in the 25,450–25,150 zone, while resistance is capped around 25,700–25,800.”
Rupak De, Senior Technical Analyst at LKP Securities, noted that “the Nifty slipped below the critical 21EMA on the daily timeframe, indicating weakness. However, the index has declined towards the support of the previous swing high, placed around 25,450.”
Sudeep Shah, Head – Technical Research at SBI Securities, observed that “in the past two sessions, Nifty has slipped by more than 300 points, closing below its 20-day exponential moving average (EMA) — a key short-term trend indicator. This technical breakdown suggests a shift in sentiment, as the index transitions from a bullish to a neutral-to-weak bias.”
Cautious outlook
Looking ahead, market participants are focused on key U.S. economic indicators due this week, particularly the ISM Manufacturing and Services PMI readings. “Market participants are now focused on key U.S. economic data releases this week, including the ISM Manufacturing and Non-Manufacturing PMI, which could influence dollar movement and global risk sentiment,” said Trivedi.
Ajit Mishra, SVP Research at Religare Broking, advised caution. “Participants should avoid aggressive positions and maintain a stock-specific trading approach, with a preference for large-cap and larger mid-cap stocks, as the broader market underperformance may persist in the near term.” The market is expected to remain range-bound, with the 25,450 level acting as crucial support and the 25,700-25,800 range as immediate resistance in the coming sessions.
Published on November 6, 2025
