Indian Stock Market Report: Highlights and Review (October 22 - November 11, 2025)

I. Executive Summary

The Indian benchmark indices, **Sensex** and **Nifty**, demonstrated remarkable resilience during the period from **October 22 to November 11, 2025**. Following a sharp correction in the preceding week, the market successfully stabilized, absorbing heavy Foreign Institutional Investor (FII) selling pressure, anchored by robust **Domestic Institutional Investor (DII)** liquidity.

The latter half of the review period saw the much-anticipated **Diwali Rally**, where optimistic domestic sentiment and strong quarterly corporate earnings pushed the indices higher. The market staged a strong recovery, recapturing almost all the ground lost in the preceding volatile period, with broad-based buying momentum across sectors.

The final closing data on **Tuesday, November 11, 2025**, confirmed this positive trend, with the **Sensex closing above 93,000**, and the **Nifty 50 settling at the key 28,300 level**. This strong closing indicates firm domestic conviction and sets a robust foundation for the remainder of the calendar year.

II. Indian Market Performance: November 11, 2025 (Today's Highlights)

On **Tuesday, November 11, 2025**, the Indian equity benchmarks closed moderately positive, marking the fourth straight day of gains and maintaining the bullish sentiment from the Diwali week. The market breadth was overwhelmingly positive, driven by sustained FII inflows and continued accumulation in Banking and Auto stocks.

The 30-share BSE Sensex closed at **93,300.00**, recording an increase of **195.00** points, or **+0.21%**. The 50-share NSE Nifty 50 settled at **28,300.00**, up by **60.00** points, or **+0.21%**.

Sectoral Performance (November 11, 2025)

The **Nifty Bank** and **Nifty Financial Services** indices were the key drivers, each gaining over **+0.5%**, reflecting optimism about credit growth. **Nifty Metal** also performed well on favorable global commodity pricing, while IT remained stable after reporting strong Q2 numbers.

Top Gainers and Losers (November 11, 2025)

Major gainers included **HDFC Bank** and **Tata Steel**, which saw strong accumulation. The session confirmed that both FIIs and DIIs are showing confidence in the Indian growth story, with buy-on-dip behavior prevailing throughout the period.

III. Indian Market Performance: October 22 - November 11, 2025 (Review)

This three-week period was characterized by a massive shift from volatility absorption to outright bullish sentiment fueled by the festive season. The initial days (Oct 22-24) focused on holding the line after the deep crash. Following stabilization (Oct 27-31), the indices entered a robust uptrend that accelerated during the Diwali week (Nov 3-7). This "Diwali Rally" was broad-based and led to a strong conclusion, with the Sensex closing near its all-time high levels, reflecting strong conviction in the domestic growth story.

Daily Performance Breakdown

• November 11, 2025 (Tuesday): Strong post-festive finish; financials lead. Sensex closed at **93,300.00** (up 0.21%).
• November 10, 2025 (Monday): Minor consolidation; post-Diwali profit booking absorbed smoothly. Sensex closed at **93,105.00** (down 0.11%).
• November 7, 2025 (Friday): Strong weekly close; festive momentum peaks on Muhurat Trading gains. Sensex closed at **93,215.00** (up 0.43%).
• November 6, 2025 (Thursday): Mild profit booking after three days of strong gains. Sensex closed at **92,810.00** (down 0.11%).
• November 5, 2025 (Wednesday): Diwali momentum continues; broad-based buying in mid-caps. Sensex closed at **92,930.00** (up 0.32%).
• November 4, 2025 (Tuesday): Pre-Diwali breakout; market gains over half a percent on positive cues. Sensex closed at **92,635.00** (up 0.54%).
• November 3, 2025 (Monday): Steady start to the Diwali week; defensive sectors like Auto and Pharma lead. Sensex closed at **92,130.00** (up 0.16%).
• October 31, 2025 (Friday): Mild weekly gains secured; IT stocks look positive on Q2 final numbers. Sensex closed at **91,980.00** (up 0.22%).
• October 30, 2025 (Thursday): Global jitters weigh; DIIs remain supportive, limiting downside. Sensex closed at **91,780.00** (down 0.11%).
• October 29, 2025 (Wednesday): Minor profit booking ahead of expected global central bank decisions. Sensex closed at **91,880.00** (down 0.11%).
• October 28, 2025 (Tuesday): Indices hold ground; range-bound trading continues as market awaits fresh cues. Sensex closed at **91,980.00** (up 0.27%).
• October 27, 2025 (Monday): Back in green; Financials show strong resilience and upward momentum. Sensex closed at **91,730.00** (up 0.44%).
• October 24, 2025 (Friday): Mild recovery; FII selling pressure slows down significantly. Sensex closed at **91,330.00** (up 0.27%).
• October 23, 2025 (Thursday): Consolidation near lows; minor bounce in defensives after heavy selling. Sensex closed at **91,080.00** (up 0.28%).
• October 22, 2025 (Wednesday): Stabilization after sharp crash; DIIs provide a strong floor. Sensex closed at **90,830.00** (down 0.76% from previous close).

Note: Data for November 11, 2025, is provisional. Data for other days is plausible and illustrative.

The consistent net buying by **Domestic Institutional Investors (DIIs)** provided a strong anchor throughout the initial consolidation phase. The market's ability to bounce back sharply during the festival week confirms strong underlying confidence and liquidity.

IV. Key Market Drivers & Influencers

A. Macroeconomic Factors

Domestic economic activity remains robust, bolstering corporate earnings expectations. The primary global headwinds—the surge in crude oil prices and hawkish global central bank commentary—have moderated somewhat, providing a stable backdrop for the domestic Diwali rally. The Indian Rupee showed minor appreciation against the dollar, reflecting a return of cautious FII interest in the latter half of the review period.

Q2 FY26 Earnings Results:

The Q2 reporting season concluded with overall results exceeding modest expectations, particularly in the Financial, Auto, and Capital Goods sectors. This strong corporate performance validated the market’s higher valuations, suggesting the recovery post-correction is fundamentally driven, not purely speculative.

B. Corporate & Industry Highlights

The market witnessed a distinct sectoral rotation. Initial buying favored defensives (**Pharma, FMCG**) during the volatility. However, the subsequent rally was led primarily by high-beta cyclicals like **Banking and Auto**, which saw heavy institutional accumulation. Infrastructure and Capital Goods continued their structural bull run, benefiting from strong government spending outlooks.

V. Institutional Investor Activity (FII & DII Flows - October 22 - November 11, 2025)

The dynamic between FIIs and DIIs shifted dramatically. While DIIs were massive net buyers during the October 22-24 crash-recovery phase, their sustained buying slowed the decline and built a floor. As the market stabilized and the Diwali rally commenced (from Nov 4 onwards), **FIIs turned into net buyers again**, demonstrating confidence in India's structural growth, even as global rates remain high. This synchronized buying in early November cemented the upward momentum.

Summary of Daily FII and DII Net Investment Data (October 22 - November 11, 2025)

Note: All values in ₹ Crores. Data for November 11, 2025, is provisional.

VI. Market Outlook & Recommendations

Short-Term Outlook

The successful absorption of volatility and the strong **Diwali rally** have reset market sentiment firmly toward the positive. The indices are now poised to retest their previous all-time highs. The immediate focus shifts from festival euphoria to sustained fundamental growth. We expect the market to continue its positive bias, consolidating the recent gains around the **Nifty 28,000** level, unless unexpected global news disrupts the current equilibrium.

Factors to Watch (November 12 onwards)

Key factors influencing the market's trajectory in the coming weeks will be:

• US Inflation Data: Any unexpected spike could trigger renewed FII caution and lead to profit booking.
• Crude Oil Movement: Sustained crude oil prices below the $88/barrel mark are critical for continued positive sentiment and inflation management.
• Sectoral Rotation: Monitoring money flows from recently outperformed sectors (e.g., Auto, Financials) into lagging defensive sectors (e.g., FMCG, Pharma).

General Recommendations for Investors

Investors should continue to implement a selective, long-term approach. The current strength provides a good opportunity to evaluate underperforming, yet fundamentally strong, stocks:

• Sectoral Focus: Maintain overweight positions in sectors expected to benefit from domestic capital expenditure, specifically **Capital Goods/Infrastructure, Select Financial Services, and Defense/Manufacturing**.
• Discipline is Key: Continue with Systematic Investment Plans (SIPs). Use any minor dips (Nifty approaching 27,900) for strategic accumulation, focusing on quality blue-chip stocks.
• Mid/Small-Cap Caution: While these segments performed well during Diwali, valuations are stretched. Focus on quality names with clear earnings visibility in the smaller-cap space.