The Indian stock market witnessed a reversal on October 24, 2025, as benchmark indices ended their six-session winning streak with the Sensex declining by 344.52 points or 0.41 percent to close at 84,211.88, while the Nifty 50 finished at 25,795.15, down by 96.25 points or 0.37 percent. The pullback came after both indices had touched fresh 52-week highs in the previous session, signaling profit-booking by investors at elevated levels.
The market opened on a muted note and remained under pressure throughout the trading session. During intraday trading, the Nifty 50 slipped 0.66 percent to touch a low of 25,718.2 levels, while the BSE Sensex fell 0.7 percent to an intraday low of 83,957.15, reflecting widespread selling pressure across sectors.
Trade Policy Concerns Impact Market Sentiment
The declines followed a dampening of investor sentiment amid perceived delays in the signing of an India-US trade deal. Union Commerce and Trade Minister Piyush Goyal stated that India will not sign any trade deals in a hurry. This statement came at a crucial time when market participants had built expectations around potential trade benefits that could boost export-oriented sectors.
The cautious approach adopted by Indian policymakers regarding international trade agreements has introduced an element of uncertainty into market calculations. Investors who had positioned themselves for potential gains from improved trade relations found themselves reassessing their strategies, leading to widespread profit-booking across the board.
Sectoral Performance Shows Mixed Trends
The sectoral performance on October 24 presented a mixed picture, with certain defensive sectors bucking the overall downward trend. The Nifty Realty and Nifty Metal indices bucked the trend among all sectoral indices, closing higher by 0.18 percent and 1.03 percent respectively. This divergence suggests that some investors are rotating their portfolios toward sectors perceived as undervalued or having better growth prospects.
The metal sector’s outperformance came despite global commodity price volatility, indicating strong domestic demand and positive sentiment around infrastructure spending. The realty sector’s gains reflect continued optimism about the residential and commercial property markets, supported by favorable lending rates and urban demand.
Most other sectors, however, participated in the broader market decline, with particularly notable weakness in pharmaceutical and consumer goods stocks that had been market leaders in recent sessions.
Top Losers Drag Down Benchmark Indices
Shares of Cipla Ltd and Hindustan Unilever Ltd emerged as the top drags among Nifty 50 stocks on October 24. Cipla Ltd shares closed lower by 3.68 percent and Hindustan Unilever shares finished lower by 3.33 percent. The pharmaceutical giant’s decline came despite the sector’s generally strong fundamentals, suggesting company-specific concerns or profit-taking after recent gains.
Other major losers included Max Healthcare Institute Ltd, UltraTech Cement Ltd, and Adani Ports and Special Economic Zone Ltd, which closed lower by 2.25 percent, 1.93 percent, and 1.82 percent respectively. The breadth of losses across diverse sectors – from healthcare to cement to logistics – underscored the widespread nature of the selling pressure.
The cement sector’s weakness, exemplified by UltraTech’s decline, may reflect concerns about demand patterns or input cost pressures. Meanwhile, the decline in port operator Adani Ports could be linked to broader concerns about global trade volumes and logistics demand.
Broader Market Underperforms Benchmark Indices
While the headline indices registered moderate declines, the broader market faced more significant pressure. The BSE MidCap and SmallCap indices, which have been underperforming for several months, continued their weak trend. BSE midcap and BSE smallcap indices have remained flat over the last year, while they have delivered negative returns on a year-to-date basis. Even in the last six months, their rise has been around 7-8 percent only, widely underperforming the benchmark indices
This divergence between large-cap and broader market performance has been a consistent feature of the current market cycle. Market participants remain tentative, still unsure whether the index can decisively break past its all-time high levels touched back in September 2024.
Technical Analysis Points to Key Support Levels
From a technical perspective, the market’s inability to sustain gains after touching new highs suggests investor caution. The Nifty’s support levels are now crucial for determining near-term direction. Market technicians are closely watching the 25,700-25,800 zone, which could act as important support if the selling pressure continues.
On the upside, the index faces resistance near the 26,000-26,100 levels, representing psychological barriers and previous high points. A decisive break above these levels with sustained volumes would be necessary to confirm the resumption of the uptrend.
Currency and Global Market Influences
The Indian rupee’s stability has been a supportive factor for foreign portfolio investors. The rupee held steady around ₹83, reducing currency risk for foreign investors. This stability is crucial for maintaining foreign institutional investor (FII) interest in Indian equities, particularly when compared to other emerging markets facing currency volatility.
Global market cues remained mixed, with U.S. markets showing resilience but concerns about oil prices and geopolitical tensions keeping investors on edge. Elevated crude prices kept energy stocks under pressure, with traders remaining cautious on potential impact on inflation and fiscal math.
IPO Market Remains Active
Despite the weakness in secondary markets, the primary market continued to see activity. Shares of Midwest Ltd made their debut on the NSE and BSE on October 24. The stock listed with a premium of over 9 percent to the issue price. Additionally, Orkla India Ltd announced details for its upcoming public issue, indicating continued corporate appetite for fundraising despite market volatility.
Upcoming Market Drivers
Looking ahead, the market will react to a slew of major global events in the week starting October 27, 2025. Key global events include the U.S. Federal Reserve’s upcoming policy meeting and a meeting between U.S. President Donald Trump and Chinese President Xi Jinping. Closer to home, fresh developments on the India-US trade deal are also expected to impact investor sentiment.
These events could provide direction to markets that are currently caught between positive earnings momentum and concerns about valuations and global uncertainties. The Federal Reserve’s policy stance, in particular, will be crucial for emerging market flows, including India.
Investor Strategy in Current Market Environment
Market experts suggest that while global investor positioning remains favorable toward India due to their current underweight status, the market may consolidate for more time until earnings catch up with current elevated valuations. Even though there are potential tailwinds from the US-India trade deal, the combination of rich valuations and slowing growth makes a sustained breakout difficult.
Given this environment, investors are advised to maintain a balanced approach, focusing on quality stocks with reasonable valuations rather than chasing momentum. Diversification across sectors and careful stock selection based on fundamentals remain crucial strategies in the current market phase.