Weekly Market Wrap — India & Global Markets (06–10 October 2025)

The week of 06–10 October 2025 witnessed positive momentum in Indian equities, with both Nifty and Sensex ending on a strong note. IT and banking sectors drove gains, while anticipation for Q2 earnings and renewed foreign portfolio inflows (FPIs) added support. However, global developments, particularly US-China trade tensions, kept investors cautious, especially toward the end of the week. This wrap provides a detailed analysis of sectoral performances, key stocks, global cues, and factors investors should watch in the coming week.

Key Market Indicators

Index	Opening (Oct 6)	Closing (Oct 10)	Weekly Change (%)
NIFTY 50	₹24,916.55	₹25,285.35	+1.48%
SENSEX	₹81,790.12	₹82,500.82	+0.85%
India VIX	10.06	10.10	+0.40%

Observation: Market volatility remained low, indicating confidence in domestic fundamentals despite global uncertainties.

Day-by-Day Market Moves

• Monday (06 Oct):
  Markets opened positively as investors responded to strong IT and banking stocks. FPIs increased their participation, showing optimism ahead of the Q2 earnings season. Nifty crossed 25,000 for the first time in several sessions.
• Tuesday & Wednesday (07–08 Oct):
  Sector rotation observed. IT, healthcare, and private banks gained, while metals, FMCG, and media saw profit-booking. Investors focused on valuations and sector-specific triggers.
• Thursday (09 Oct):
  Markets experienced mild consolidation. Investors preferred selective buying as global cues remained mixed. Banking and IT sectors remained resilient.
• Friday (10 Oct):
  Domestic markets closed strongly, but late-session U.S.-China trade tension news weighed on global markets, keeping risk sentiment subdued.

Top Performers

1. IT / Technology:
   • Major IT companies like TCS, Infosys, and Wipro led gains.
   • Positive pre-Q2 earnings sentiment and robust order books supported sector strength.
   • Nifty IT index rose 2.1% for the week.
2. Banking / Financials:
   • Private banks like HDFC Bank, ICICI Bank, and Axis Bank drove the financial index higher.
   • Capital adequacy, credit growth expectations, and FPI inflows boosted sentiment.
   • PSU banks showed selective strength on policy and recapitalization cues.
3. Healthcare & Pharma:
   • Pharma counters such as Dr. Reddy’s, Sun Pharma, and Cipla performed well.
   • Investor interest fueled by company-specific news, partnerships, and regulatory updates.
   • Healthcare index rose 1.5% for the week.
4. Realty:
   • Realty stocks showed moderate gains as investors tracked domestic demand indicators and project launches.

Underperformers

1. Metals & Mining:
   • Profit-booking amid global commodity volatility, especially in steel and aluminum stocks.
   • Weakness in global demand and China export uncertainties affected metal prices.
2. FMCG:
   • Slow growth and profit-booking led to underperformance in consumer staples.
   • Select stocks like ITC and Hindustan Unilever faced minor corrections.
3. Media:
   • Weak advertisement revenue projections caused profit-booking in major media houses.
   • Index fell 0.7% on week-on-week basis.

Key Stocks Movers

Stock	Performance	Trigger
TCS	+2.5%	Q2 earnings anticipation
Infosys	+2.2%	Strong client order books
HDFC Bank	+1.8%	Credit growth optimism
Dr. Reddy’s	+1.7%	Regulatory approvals & partnership updates
Tata Steel	-1.5%	Global commodity volatility
ITC	-0.9%	Profit-booking

Insight: Investors preferred IT and banking sectors as defensive growth plays. Metals and FMCG saw selective profit-taking.

Foreign Portfolio Inflows & Domestic Liquidity

• FPIs bought Indian equities worth INR 1,751.79 crore over the week.
• Domestic mutual funds participated selectively, focusing on IT, banking, and pharma.
• India VIX remained low (11.9), reflecting controlled market volatility.

Global Market Cues

• U.S. Markets: Dow, S&P 500, and Nasdaq faced pressure due to late-week news on U.S.-China trade tensions and potential tariff announcements.
• Asia-Pacific: Mixed performance; Japanese and Hong Kong markets rose early week but cooled down after mid-week.
• Impact on India: Limited direct impact, but global risk-off sentiment may affect capital flows next week.

Currency & Commodity Trends

• INR: Strengthened marginally by 7 paise vs USD, benefiting from FPI inflows and stable crude.
• Crude Oil: Brent and WTI prices softened slightly, reducing inflationary pressure.
• Gold: Remained stable at INR 1,24,300 (approx.) per 10g due to safe-haven demand.

Investor Takeaways & Next-Week Watchlist

1. Q2 Earnings Season:
   • IT and banks will be key catalysts. Positive surprises could push indices higher.
2. US-China Trade Developments:
   • Any escalation or easing in trade tensions will influence global and Indian risk sentiment.
3. FPI Flows & Domestic Liquidity:
   • Sustained FPI buying can support markets, while withdrawal may trigger short-term volatility.
4. Sector Rotation:
   • IT and banking sectors remain strong. Metals and FMCG require careful monitoring.
5. Macro Indicators:
   • Inflation data, RBI commentary, and global crude trends could guide next-week moves.

Outcome

The week of 06–10 October 2025 saw the Indian market end on a positive note, with Nifty up 1.57% and Sensex gaining 1.07%, largely driven by strong performances in IT, banking, and healthcare sectors. Profit-booking affected metals, FMCG, and media, while foreign portfolio inflows and stable domestic liquidity supported market strength. Despite domestic gains, global cues, especially U.S.-China trade tensions, created cautious sentiment toward week-end, highlighting the importance of upcoming Q2 earnings, FPI flows, and macro developments for guiding market direction in the coming week.