Benchmark indices experienced a significant decline on Friday, with the Sensex dropping 465.75 points or 0.55 percent to close at 83,938.71. The Nifty 50 also fell, declining 155.75 points or 0.6 percent to settle at 25,722.10. Despite these losses, both indices marked their largest monthly gains in seven months, rising 4.6 percent and 4.5 percent, respectively, throughout October.
The monthly increase can be attributed to strong corporate earnings and a reversal in foreign institutional investors’ outflows, with total purchases amounting to $1.94 billion as of Thursday. All 16 major sectors recorded gains for the month, notably led by the IT sector, which surged 6.1 percent, boosted by better-than-anticipated earnings from TCS, HCL Tech, and Wipro. Additionally, the financial sector, including banks and private lenders, experienced an increase ranging from 4.3 percent to 6 percent, thanks to solid performances from HDFC Bank and Axis Bank.
On Friday, however, private lenders exerted downward pressure on the markets after India’s market regulator announced a phased restructuring of bank stock indexes linked to derivatives contracts, set to be completed by March 2026. This change is projected to result in outflows of approximately $300 million from HDFC Bank and $190 million from ICICI Bank, leading to respective daily losses of 1.1 percent and 1.3 percent for those stocks.
Of the 4,309 stocks traded on the BSE, 2,436 saw declines while 1,722 advanced. Bharat Electronics was the top gainer on the Nifty 50, rising 3.98 percent to ₹426.20, followed by Eicher Motors (up 1.81 percent to ₹7,014), Shriram Finance (up 1.78 percent to ₹751.40), Larsen & Toubro (up 1.02 percent to ₹4,028), and TCS (up 0.81 percent to ₹3,060).
In contrast, Eternal led the decliners with a drop of 3.45 percent to ₹318, followed by NTPC falling 2.52 percent to ₹336.45, and Cipla decreasing by 2.51 percent to ₹1,501.50. Other notable decliners included Max Healthcare, slipping 2.50 percent to ₹1,149, and HDFC Life, declining 2.09 percent to ₹731.
The PSU Bank index, however, rose 1.5 percent, fueled by expectations of increased foreign direct investment limits and positive second-quarter results. In contrast, power, metal, and media indices each fell by about 1 percent, while IT, private bank, and healthcare indices dropped approximately 0.5 percent.
“Indian equities ended decisively lower after a volatile session, as investors booked profits amid mixed corporate earnings and cautious global sentiment in the backdrop of a strong greenback,” stated Vinod Nair, Head of Research at Geojit Investments. Nair noted that after a robust rally, the markets turned to profit-booking as many economic developments had already been factored in.
G Chokkalingam, founder and head of research at Equinomics Research, mentioned, “While some profit-booking emerged near the 26,000 mark, October has been a strong rebound month for the markets, with earnings delivering no major disappointments.”
The rupee traded steadily around 88.70 as foreign institutional investors continued to sell in recent sessions. “The dollar index edged slightly higher near 99.50, adding mild weakness to the rupee,” commented Jateen Trivedi of LKP Securities, who anticipates that the currency will trade within the 88.40–89.10 range. Gold remained volatile but positive at ₹1,21,650 per 10 grams, with support at ₹1,18,000 and resistance at ₹1,24,000.
Looking ahead, analysts predict consolidation at current levels. “The broader trend remains bullish, supporting a buy-on-dips strategy as long as the Nifty holds above 25,500,” said Nilesh Jain of Centrum Broking, adding that a decisive move above the 26,000 threshold could initiate the next phase of the rally.
Published on October 31, 2025
