Indian Stock Market Ends Lower Amid Global Cues and Sectoral Weakness

Indian equity markets concluded Thursday's trading session in negative territory, with both the benchmark Sensex and Nifty indices registering losses. The Sensex declined by 0.70% to close at 84,404.46, and the Nifty ended 0.68% lower at 25,877.85. The Nifty Bank also followed suit, falling 0.61% to settle at 58,031.

Several factors contributed to the subdued market sentiment. Globally, the U.S. Federal Reserve executed a widely anticipated 25 basis points (bps) interest rate cut. However, market sentiment was tempered by Federal Reserve Chair Jerome Powell's indication that this might be the final rate cut for 2025, dampening expectations for further monetary easing. This led to a stronger U.S. dollar, which in turn fostered a risk-off sentiment across emerging markets, including India.

Domestically, the market experienced volatility due to mixed second-quarter earnings announcements and the conclusion of the Futures and Options (F&O) expiry. Investors also remained cautious, closely watching the ongoing trade negotiations between the United States and China, as uncertainty surrounding these discussions continued to impact market sentiment.

Top gainers for the day included Larsen & Toubro and Bharat Electronics. Other notable advancers were UltraTech Cement, Maruti Suzuki, Tata Motors Passenger Vehicles, and Adani Ports.

On the downside, Bharti Airtel, Power Grid, Tech Mahindra, Infosys, and Reliance Industries were among the significant laggards.

In the mid-cap segment, Sagility saw a substantial intraday surge of over 12%. Conversely, Vodafone Idea experienced a sharp decline of more than 12% following clarifications on its Adjusted Gross Revenue (AGR) dues. LIC Housing Finance dropped over 4% post its Q2 earnings, while BHEL rallied nearly 5% on reporting a significant 254% year-on-year jump in consolidated net profit for Q2 FY26, reaching Rs 375 crore. Travel tech firm Ixigo (Le Travenues Technology) also faced considerable pressure, falling over 17% after releasing its September-quarter results.

Investors are now looking ahead to a busy earnings schedule on October 31, with major companies like Bharat Electronics, Bharat Petroleum Corporation, Bank of Baroda, GAIL (India), Godrej Consumer Products, Maruti Suzuki, and Shriram Finance set to announce their September-quarter financial results.

Impact: This news significantly impacts the Indian stock market by reflecting current investor sentiment, the influence of global economic policies on domestic trading, and company-specific performance. The volatility suggests caution among investors. The upcoming earnings season will be crucial for individual stock performance and sector-specific trends. Impact Rating: 7/10

Heading: Difficult Terms Basis points (bps): A unit of measure used in finance to denote the change in a financial instrument's value. One basis point is equal to 0.01% (1/100th of a percent). Monetary easing: Refers to policies adopted by central banks to reduce the cost of borrowing and encourage spending and investment, typically by lowering interest rates and increasing the money supply. Risk-off sentiment: A market mood where investors tend to sell assets with higher risk (like stocks) and buy safer assets (like government bonds or gold) due to fear of losses. Emerging markets: Countries with developing economies that are in the process of rapid growth and industrialization but are not yet fully developed. F&O expiry: Refers to the expiry date of financial derivatives contracts like Futures and Options. This period often leads to increased volatility as traders close or roll over their positions. Adjusted Gross Revenue (AGR) dues: A revenue-sharing model used by the Indian government for telecom operators, where they pay a percentage of their AGR to the government. Dues refer to outstanding payments. Consolidated net profit: The total profit of a company after deducting all expenses and taxes from its total revenue, including the profits or losses of its subsidiaries.