Benchmark Indices End Positive After 2-Day Drop; Nifty Small-Cap Outperform

Market Update at 4:10 PM: On Monday, November 3, Indian equity benchmark indices ended higher, snapping a two-day losing streak. The markets consolidated after their biggest monthly gain in seven months during October, supported by stock-specific reactions to Quarterly Results and strength in select sectors.

At the close, the Nifty 50 rose 41.25 points, or 0.16 per cent, to 25,763, while the Sensex gained 39.78 points, or 0.05 per cent, to end at 83,978.49. Both indices remained about 2 per cent below their record highs. India’s volatility index (India VIX) rose over 4 per cent after a sharp Intraday move.

Among sectors, nine out of eleven indices closed in the green. The Nifty PSU Bank index advanced 1.92 per cent, extending last week’s 4.7 per cent rise on reports of a possible hike in foreign investment limits. The Nifty Realty index was the top gainer, up 2.23 per cent to a three-month high, while the Nifty IT index slipped 0.17 per cent amid weakness in TCS and Oracle Financial Services Software.

In stock-specific moves, Shriram Finance surged over 6 per cent to a record high after reporting strong quarterly earnings. Bank of Baroda rose more than 4.5 per cent following better-than-expected profit for the September quarter. Zen Technologies gained 4.13 per cent after securing Rs 289 crore in orders from the Ministry of Defence for upgrading anti-drone systems.

Among the top contributors to Nifty gains were HDFC Bank (+20.31 points), Shriram Finance (+14.12 points), and Bharti Airtel (+13.37 points). Maruti Suzuki (-15.79 points), ITC Ltd (-13.34 points), and Larsen & Toubro (-12.80 points) were the major drags.

The broader markets outperformed the benchmarks, with the Nifty Midcap 100 index rising 0.77 per cent and the Nifty Smallcap 100 up 0.72 per cent. Market breadth was positive, with 1,798 stocks advancing, 1,313 declining, and 101 remaining unchanged out of 3,212 traded on the NSE.

Additionally, 104 stocks hit their 52-week highs, 64 touched 52-week lows, 98 were locked in Upper Circuits, and 73 in Lower Circuits.

Market Update at 12:30 PM: After a lower start, Indian stock markets staged a recovery, though trading remained volatile through the session. The BSE Sensex was quoting at 84,003, up 64 points or 0.08 per cent, while the Nifty50 erased early losses to trade at 25,758, higher by 36 points or 0.14 per cent. Earlier, the indices had hit lows of 83,609 and 25,646, respectively, during morning deals.

Among the major laggards on the Sensex were Maruti Suzuki, which slipped over 3 per cent, along with Titan Company, Eternal, BEL, Adani Ports, Axis Bank, ITC, NTPC, Bajaj Finserv, HCL, and Trent. On the other hand, M&M, SBI, Tata Motors Passenger Vehicles, and L&T were the Top Gainers, providing some support to the benchmark indices.

In the broader markets, the Nifty MidCap index advanced 0.42 per cent, while the Nifty SmallCap index gained 0.82 per cent, indicating continued investor interest in the mid and Small-Cap segments. Sector-wise, the Nifty PSU Bank index led the rally with a 1.6 per cent rise, driven by strong gains in Bank of Baroda (up 5 per cent), Canara Bank, Bank of Maharashtra, Bank of India, and Indian Bank. Additionally, the Nifty Metal and Realty indices added up to 2 per cent each.

On the downside, the Nifty FMCG, Private Bank, and IT indices declined up to 0.4 per cent, capping overall market gains.

Market Update at 10:10 AM: India’s equity benchmark indices opened lower on Monday as investors booked profits following strong gains in the previous month. However, stock-specific movements driven by quarterly earnings helped sustain broader market participation.

At 9:27 a.m. IST, the Nifty 50 eased 0.18 per cent to 25,675.25, while the BSE Sensex declined 0.28 per cent to 83,688.07. Among broader indices, the Smallcap rose 0.6 per cent and the Midcap advanced 0.2 per cent, indicating continued investor interest in mid- and small-cap stocks despite overall market softness.

Out of 16 major sectors, eight recorded losses, reflecting selective profit booking after the market’s strong performance in October. The Nifty 50 gained 4.5 per cent last month — its best monthly gain since March — supported by robust corporate earnings and steady global cues.

Shriram Finance Ltd rose 4.6 per cent after reporting an increase in quarterly profit, emerging as the top gainer in the Nifty 50 index by percentage.

Pre-Market Update at 7:40 AM: On Monday, November 3, equity benchmark indices — Sensex and Nifty 50 — are expected to open on a cautious note following mixed global market cues. Trends on the GIFT Nifty indicate that the Nifty 50 may open lower by 44 points, as it was trading at 25,853 around 7:16 AM.

During April–September 2025, the Union Government’s fiscal deficit stood at Rs 5.73 lakh crore, representing 36.5 per cent of the FY26 Budget Estimate, compared with 29 per cent during the same period in FY25. The government has projected a fiscal deficit of Rs 15.69 lakh crore for FY26, equivalent to 4.4 per cent of GDP.

The Indian automobile sector recorded strong wholesale growth in October 2025, driven by festive demand and steady consumer confidence. Companies such as Maruti Suzuki, Tata Motors, Hyundai, Mahindra & Mahindra, TVS Motor, Toyota Kirloskar and Kia India reported year-on-year increases across key vehicle categories.

India’s GST revenue for October 2025 stood at Rs 1.96 lakh crore, marking a 4.6 per cent increase over Rs 1.87 lakh crore collected in October 2024, despite Tax rate reductions implemented by the GST Council in September 2025.

In this holiday-shortened week, investors will monitor key market drivers, including Q2 FY26 earnings, macroeconomic data, FII and FPI flows, progress in India-US and US-China trade talks, and global geopolitical developments.

Asian markets traded mixed in early Monday trade, while the US market ended higher last week, with all three indices marking their longest monthly winning streaks in years.

Key Q2 FY26 Earnings (November 3, 2025): Bharti Airtel, Titan Company, Power Grid Corporation of India, Ambuja Cements, Tata Consumer Products, Bharti Hexacom, Hitachi Energy India, GE Vernova TD India, Godfrey Phillips India, AWL Agri Business, 3M India and Gland Pharma.

Institutional Flows: On Friday, October 31, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 6,769.34 crore. Domestic Institutional Investors (DIIs) remained net buyers for the seventh consecutive session, purchasing equities worth Rs 7,068.44 crore.

Friday’s Market Action: The Nifty 50 fell 155.75 points (0.6 per cent) to close at 25,722.10, while the Sensex dropped 465.75 points (0.55 per cent) to 83,938.71. On a weekly basis, the Nifty slipped 0.28 per cent but gained 4.51 per cent in October. Sectorally, financials and metals declined, while PSU banks gained over 1.5 per cent, supported by Union Bank of India and Canara Bank after their quarterly results. Broader markets mirrored benchmark weakness.

Global Markets: In the US, the Dow Jones Industrial Average added 40.75 points (0.09 per cent) to 47,562.87, the S&P 500 gained 17.86 points (0.26 per cent) to 6,840.20, and the Nasdaq Composite advanced 143.81 points (0.61 per cent) to 23,724.96. On a monthly basis, the S&P 500 rose 2.27 per cent, the Nasdaq gained 4.7 per cent, and the Dow added 2.5 per cent.

US-China Trade Update: China will suspend additional export controls on rare earth metals and halt investigations targeting US Semiconductor firms. The US will pause reciprocal tariffs for one year and delay plans for a 100 per cent tariff on Chinese exports.

Commodities: Gold prices declined as the US dollar strengthened and trade tensions eased. Spot gold fell 0.8 per cent to USD 3,968.76 per ounce, while December futures dropped 0.5 per cent to USD 3,978.30 per ounce. Crude oil prices edged higher after OPEC delayed production increases for Q1 2026. Brent crude rose 0.57 per cent to USD 65.15 per barrel, and WTI crude gained 0.62 per cent to USD 61.36 per barrel.

For today, Samaan Capital will remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.