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Stock market news: The Indian stock market closed on a negative note on Friday, with Nifty 50 dropping by 156 points and Sensex falling by nearly 466 points. The downturn was mainly caused by ongoing selling pressure amid careful global indicators.

Markets remained tepid following a small rate reduction by the U.S. Federal Reserve, which indicated a probable pause in additional rate cuts for the remainder of the year, creating uncertainty regarding liquidity and foreign fund inflows. Significant sectors such as healthcare, financial services, and pharmaceuticals experienced marked declines.

As per experts, a crucial observation from Friday’s market performance was the continued cautious approach among investors, despite positive earnings projections for the upcoming quarters. Foreign Institutional Investors (FIIs) exhibited caution resulting in outflows, highlighting worries about global macroeconomic conditions and interest rate trends in the U.S. Moreover, sector-specific challenges in financial services and healthcare impacted overall market performance.

Nifty 50 concluded eventful week on a flat note at 25,722 amid elevated volatility tracking tariff development. Midcaps outshone benchmark by gaining 1% lead by PUS Banks, Oil & Gas and Metal stocks. The weekly price action formed a small bear candle with long upper shadow, highlighting profit booking at higher levels.

The index has undergone healthy consolidation over second consecutive week as profit booking in recently rallied large caps, resulted into breather at psychological mark of 26,000 amid overbought condition tracking past four weeks >1,500 points rally. Meanwhile midcaps regained momentum with improved market breadth

We believe, current breather offers incremental buying opportunity to ride next leg of up move towards All Time high of 26,300 in the coming month. The ongoing consolidation (26,100-26,700) is a part of the prevailing structural up trend. Hence, focus should be on accumulating quality stocks on dips backed by strong earnings as key support is placed at 25,400 being 50% retracement of recent up move coupled with one year downward sloping trend line breakout area at 25,400.

While sectors like private banks, auto, IT have paused for a breather, momentum is shifting towards, Metal, PSU Banks, Oil & Gas. This sectoral rotation signals a constructive baton change that could help in durability of ongoing uptrend amid global volatility, evolving tariff development and ongoing earnings season.

Mirroring the Nifty 50, Midcap index resolved out of one year downward slanting trend line, indicating resumption of uptrend after one year hiatus. Amidst ongoing consolidation, market breadth has seen improvement as currently 62% stocks of Nifty 500 are trading above their 200 days EMA compared to one month rolling average of 56, indicating improvement in broader market participation.

a. Monthly Auto sales numbers

b. FII's have turned positive after three months sell-off. Continued buying spree would boost market sentiment

c. Development on India-US tariff negotiations

d. Progression of Q2FY26 earning season

e. On expected lines, Gold has taken a breather amid overbought conditions. We expect gold to undergo healthy consolidation in $4400-$3700 range

Dharmesh Shah of ICICI Securities recommends buying Bharat Electronics Ltd (BEL), and Indian Oil Corporation Ltd (IOC).

Buy BEL shares in the range of ₹414-426. He has BEL share price target of ₹466 with a stop loss of ₹398.

Buy IOC shares in the range of ₹161-166. He has IOC share price target of ₹179 with a stop loss of ₹154.

Disclaimer: The Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 31/10/2025 or have no other financial interest and do not have any material conflict of interest.

The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.

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