India market update
- Nifty 50 — September 30, 2025 close: 24,611
- Nifty 50 — October 30, 2025 close: 25,722
- Monthly change (Oct vs Sep): +1,111 points (+4.5%)
October saw a healthy rebound in the Nifty 50, rising 4.5% versus the September close. Gains were led by domestic demand plays and renewed investor interest ahead of year-end IPO activity. Market breadth was mixed as some pockets experienced profit-booking despite the headline rise.
Key domestic developments
- IPO pipeline: Strong activity expected into Q4, drawing investor attention to new listings.
- RBI & macro: Liquidity remains supportive; upcoming CPI prints and RBI commentary should be monitored for policy signals.
- Sector trends: Financials and infrastructure showed relative strength; export-sensitive sectors were more range-bound due to global uncertainty.
Two global events that mattered
- US Fed: Late-October Fed communications/easing improved risk appetite for emerging markets.
- IMF: A marginal upgrade to global growth for 2025, accompanied by warnings on trade and geopolitical risks.
Implication for India: Easing global rates and a firmer global growth backdrop supported flows into Indian equities; however, export sectors remain sensitive to external headwinds.
Strategy for investors
- Equities: Maintain exposure to high-quality large-caps and selective mid-caps; prefer a phased approach to deploying new money.
- Sectors: Favor financials, domestic consumption and infrastructure; monitor IT and export-focused names for global demand signals.
- Valuation discipline: Exercise caution amid a busy IPO calendar—prioritise fundamentals and avoid speculative listings without clear earnings visibility.
- Risk management : Rather than a blanket “stay fully invested” directive, long-term investors should rebalance portfolios based on risk tolerance, trim or hedge richly valued positions, and use systematic approaches (SIPs or staggered buys) to reduce timing risk. Maintain adequate liquidity or debt/hybrid allocation to manage volatility and near-term liquidity needs.
For more information, visit CapitaGrow at capitagrow.com and connect with us.
