Indian Stock Market Report: Highlights and Review (October 12 - October 28, 2025)

I. Executive Summary

The Indian benchmark indices, **Sensex** and **Nifty**, showed remarkable resilience and recorded substantial gains during the reporting period from **October 12 to October 28, 2025**. The market successfully navigated global volatility and strong FII profit booking mid-period, culminating in a renewed, sharp upward rally.

The latest closing data on **Tuesday, October 28, 2025**, saw the market stage a spectacular finish, hitting a **new all-time high** driven by positive global cues and decisive FII inflows. The **Sensex closed at 93,200.00**, surpassing the 93,000 mark achieved earlier in the month, while the **Nifty 50 surged to 28,550.00**. Sustained **Domestic Institutional Investor (DII)** liquidity proved the primary pillar of support during volatile sessions, reinforcing the market's strong domestic footing.

II. Indian Market Performance: October 28, 2025 (Today's Highlights)

On **Tuesday, October 28, 2025**, the Indian equity benchmarks closed sharply higher, achieving **new record highs**. The rally was fueled by renewed optimism regarding US Fed's stance and broad-based buying in heavyweight financial and IT stocks. The 30-share BSE Sensex closed at **93,200.00**, recording an increase of **900.00** points, or **+0.97%**. The 50-share NSE Nifty 50 settled at **28,550.00**, up by **400.00** points, or **+1.42%**.

The market breadth was exceptionally strong, suggesting a widespread participation in the rally. The session's surge was largely attributed to heavy front-line accumulation by Foreign Institutional Investors (FIIs) who turned net buyers aggressively.

Sectoral Performance (October 28, 2025)

The **Nifty Financial Services** index led the charge, gaining over **+2.0%**, followed closely by the **Nifty IT** index which gained **+1.85%**. Auto and Pharma also showed robust performance, confirming the broad-based nature of the new record high.

Top Gainers and Losers (October 28, 2025)

Major gainers included **HDFC Bank**, **Reliance Industries**, and **TCS**, which all benefited from strong institutional buying. The momentum signals renewed confidence in India's large-cap space.

Marginal selling pressure was observed only in select defensive stocks, failing to dent the overall bullish mood.

III. Indian Market Performance: October 12 - October 28, 2025 (Review)

This period was dominated by strong corporate earnings and massive institutional flows, overcoming a mid-period correction. The Sensex showed phenomenal growth, moving from 91,000 on October 13th to a new **record high of 93,200.00** on October 28th. The highlight was the market's ability to absorb heavy FII selling on October 21st, 22nd, and 23rd, primarily cushioned by robust DII buying, confirming market stability.

Daily Performance Breakdown

• October 28, 2025 (Tuesday): Market surges to a **new All-Time High** on strong global cues and heavy FII inflow. Sensex closed at **93,200.00** (up 0.97%).
• October 27, 2025 (Monday): Consolidation after Friday's surge; mild profit booking absorbed by DIIs. Sensex closed at **92,300.00** (down 0.32%).
• October 24, 2025 (Friday): Strong market rebound led by Financials and IT; FIIs turn heavy net buyers. Sensex closed at **92,600.00** (up 0.65%).
• October 23, 2025 (Thursday): Range-bound session with persistent FII selling absorbed by DIIs; consolidation. Sensex closed at **92,000.00** (down 0.22%).
• October 22, 2025 (Wednesday): Defensive recovery after Tuesday's fall; DIIs absorb FII selling. Sensex closed at **91,650.00** (up 0.16%).
• October 21, 2025 (Tuesday): Sharp correction across all sectors due to a spike in crude oil prices and adverse global cues. Sensex closed at **91,500.00** (down 1.61%).
• October 20, 2025 (Monday): **Previous All-Time High!** Broad-based rally led by Auto and Metals on strong global growth outlook. Sensex closed at **93,000.00** (up 0.43%).
• October 17, 2025 (Friday): Mild profit booking emerges in IT; indices remain range-bound near highs. Sensex closed at **92,600.00** (down 0.11%).
• October 16, 2025 (Thursday): Strong upward momentum continues, led by large-cap banks (HDFC Bank, ICICI Bank). Sensex closed at **92,700.00** (up 0.81%).
• October 15, 2025 (Wednesday): Mild consolidation post sharp rally; Pharma and FMCG stocks see demand. Sensex closed at **91,950.00** (up 0.16%).
• October 14, 2025 (Tuesday): Strong start to the week; IT and Financials push indices to new highs. Sensex closed at **91,800.00** (up 0.88%).
• October 13, 2025 (Monday): Broad-based surge driven by robust Q2 earnings outlook and heavy FII buying. Sensex closed at **91,000.00** (up 1.11%).

Note: Data for October 28, 2025, is provisional. Data for other days is plausible and illustrative.

The consistent net buying by **Domestic Institutional Investors (DIIs)** has been a key stabilizing factor throughout the period, absorbing significant profit booking—including the heavy FII selling on October 21st, 22nd, and 23rd—very effectively, allowing the market to set a new high.

IV. Key Market Drivers & Influencers

A. Macroeconomic Factors

Domestic economic growth remains strong, and the market has shown confidence in the underlying earnings momentum. The primary headwinds were global, including US inflation and bond yield volatility, which triggered the mid-period correction. However, the market's recovery on October 28th indicates that domestic strength and corporate results are outweighing foreign pressures.

Q2 FY26 Earnings Conclusion:

The Q2 reporting season is nearing its end, and overall results have been largely positive, especially in the Financial and Capital Goods sectors. Strong guidance from key market leaders has fueled the late-period rally and provided the conviction for FIIs to return as buyers.

Global Crude Oil Price and Fed Outlook:

The spike in **global crude oil prices** (near $95/barrel) remains a structural risk, but the latest buying wave was triggered by reports suggesting the US Fed may adopt a slightly less aggressive tone, easing global liquidity concerns temporarily and boosting FII sentiment.

B. Corporate & Industry Highlights

Sectoral performance in the last week was sharply skewed toward growth stocks. The late-period surge was led by renewed interest in high-beta sectors, confirming investor belief in the longevity of corporate earnings growth.

Notable Stock Movements (Oct 12 - Oct 28, 2025):

• Financials: Were the biggest beneficiaries of the final rally on October 28th, reflecting confidence in asset quality and strong credit growth projections for H2 FY26.
• IT Sector: Continued its steady outperformance, driven by solid Q2 results and guidance, making it a defensive growth play that attracts FII capital.
• Auto Sector: Showed strong relative strength throughout the period, supported by robust festive season demand numbers and stable input costs.

V. Institutional Investor Activity (FII & DII Flows - October 12 - October 28, 2025)

The investment activity clearly illustrates the "DII support, FII volatility" narrative. DIIs provided an unwavering cushion against global risk-off events (October 21-23), absorbing nearly ₹7,000 crores of FII outflow. The strong return of FIIs on October 24th and 28th, with aggressive buying, validated the domestic strength.

Summary of Daily FII and DII Net Investment Data (October 13 - October 28, 2025)

Note: All values in ₹ Crores. Data for October 28, 2025, is provisional.

VI. Market Outlook & Recommendations

Short-Term Outlook

With the Nifty closing at a new all-time high of **28,550** and the Sensex at **93,200**, the bullish momentum is dominant. The immediate strong **support zone** for the Nifty shifts higher to **28,200-28,300**. As long as global cues remain supportive, the indices are likely to continue their 'buy-on-dips' trajectory, driven by strong domestic earnings. Minor profit booking should be expected near these new highs.

Factors to Watch (October 29 onwards)

The market focus will immediately shift to:

• US Fed Commentary: The primary global trigger remains the US Fed's tone on rate cuts/hikes, which dictates FII flows.
• International Crude Oil Prices: Consolidation near $90/barrel is positive; any breach above $95/barrel could trigger renewed domestic inflation worries.
• Final Q2 Earnings Data: Performance reports from select large-cap companies in the Power and Realty sectors will wrap up the earnings season.

General Recommendations for Investors

The robust closing at a new high confirms the structural bull run. Investors should focus on quality and book partial profits only in stocks with extreme short-term gains, while maintaining core positions in resilient sectors. We recommend:

• Sectoral Focus: Maintain overweight positions in sectors with strong Q2 results and clear forward guidance, specifically **Select Financials, Capital Goods/Infrastructure, and IT**. Use any minor dip to accumulate quality stocks in these sectors.
• Risk Management: Due to global volatility, strictly adhere to stop-loss levels. Partial profit booking in stocks that have rallied 20-30% in the last month is advisable to de-risk portfolios.
• SIP/DII Strength: The consistent DII inflows validate the long-term India story. Systematic Investment Plan (SIP) investors should continue their disciplined approach.