Indian Markets Decline Second Week; SEBI Promises Calibrated F&O Approach, NITI Aayog Plans Manufacturing Mission

Indian stock markets experienced a decline for the second consecutive week, with the benchmark Sensex and Nifty indices shedding approximately 1% each. This downturn was influenced by global economic uncertainties and mixed corporate earnings. However, the Nifty Midcap and Nifty Bank indices managed to remain largely flat, indicating some resilience.

During the CNBC-TV18 Global Leadership Summit 2025, SEBI Chairperson Madhabi Puri Buch reassured investors regarding the regulatory approach to futures and options (F&O) trading, describing it as 'calibrated and data-based'. She also hinted at flexibility concerning mutual fund expense ratios and brokerage caps, aiming to foster market growth. Additionally, SEBI Chairman Tuhin Kanta Pandey announced a comprehensive review of India's two-decade-old short selling and Securities Lending and Borrowing (SLB) frameworks.

NITI Aayog CEO BVR Subrahmanyam revealed plans for a National Manufacturing Mission (NMM) to be launched by the end of November. The mission aims to significantly reduce red tape and boost foreign direct investment (FDI), positioning India as a global manufacturing leader and accelerating its journey towards a developed economy.

In corporate news, Bajaj Auto reported a 24% year-on-year profit surge for the second quarter, reaching ₹2,479 crore, although it slightly missed analyst estimates. Revenue, however, exceeded expectations. Singapore Telecommunications (Singtel) divested over $1 billion worth of shares in Bharti Airtel as part of its portfolio adjustments, leading to a 3.5% dip in Bharti Airtel's stock price.

The article also touches upon US President Donald Trump's potential visit to India in 2026 and a disruptive technical glitch at Delhi Airport's air traffic control that caused widespread flight delays.

Impact: The SEBI Chairperson's comments could positively influence trading sentiment by signalling regulatory stability and openness to reform. The National Manufacturing Mission is poised to be a significant catalyst for economic growth, attracting foreign capital and enhancing India's industrial capabilities. Corporate earnings and significant stake sales directly impact the valuations and investor confidence in the respective companies, Bajaj Auto and Bharti Airtel. Rating: 7/10

Definitions: Futures and Options (F&O): These are derivative contracts whose value is derived from an underlying asset (like stocks, commodities, or indices). Futures represent an agreement to buy or sell an asset at a predetermined future date and price, while options give the buyer the right, but not the obligation, to buy or sell an asset at a specified price on or before a certain date. Mutual Funds: Investment vehicles that pool money from many investors to invest in securities like stocks, bonds, money market instruments, and other assets. They are operated by professional money managers. Brokerage Caps: Limits or maximum percentages that brokers can charge their clients for executing trades or providing advisory services. Short Selling: A trading strategy where an investor borrows securities and sells them on the open market, hoping to buy them back later at a lower price to return to the lender, thereby profiting from the price difference. Securities Lending and Borrowing (SLB): A system where investors (lenders) lend their securities to borrowers, typically for a fee. Borrowers use these securities for various purposes, including short selling. Foreign Direct Investment (FDI): An investment made by a company or individual in one country into business interests located in another country. It involves establishing business operations or acquiring business assets, including establishing ownership or controlling interest in foreign enterprises.