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Market Outlook:

Indian markets are likely to open weak on 26th October, with Gift Nifty declining 0.47% to 22,608 following a weak global setup. On 23rd October, Nifty 50 declined 0.39% to 22,600, while Sensex fell 0.17% to 73,124, with market breadth remaining sharply negative at 624 advances against 3,011 declines on NSE. India VIX rose 6.96% to 16.86, indicating heightened volatility. Nifty faces immediate support at 22,385, followed by 22,171 and 21,970, while resistance is placed at 22,800, 23,000 and 23,215. The technical view remains “Sell on rise”, with 22,372 acting as an important downside trigger. Global cues remain mixed, with the S&P 500 down 0.52% and Dow Jones down 1.23%, while Nasdaq 100 was flat. Elevated crude prices, geopolitical concerns and the upcoming US Fed meeting are likely to keep risk appetite cautious.

FII & DII Activity: Foreign institutional investors turned net buyers on 23rd October, with FII/FPI purchases of Rs 14,445.5 crore against sales of Rs 13,557.9 crore, resulting in net buying of Rs 887.7 crore. DIIs remained strong buyers, recording net inflows of Rs 3,235.4 crore through purchases of Rs 19,232.3 crore. However, the single-day FII buying does not yet indicate a clear reversal in foreign positioning, as October FII selling remains elevated at around Rs 51,500 crore. The continued DII support remains an important cushion for the domestic market, while sustained foreign outflows remain a key risk to market stability.

Sector Activity: Sectoral performance remained broadly weak, with Smallcap 50 declining 3.15%, Smallcap 100 falling 2.94% and Nifty Metal declining 2.71%, led by weakness in stocks such as IIFL, HSCL, VAML and Hindustan Zinc. Nifty Consumer Durables declined 2.63%, Realty fell 2.38% and Chemicals declined 2.32%. Among the broader sectoral indices, Nifty Energy declined 1.66%, Nifty PSU Bank fell 2.26%, Nifty Financial Services declined 1.03% and Nifty Pharma fell 1.04%. The broad-based decline across mid- and small-cap segments highlights continued risk aversion, while elevated crude prices and global uncertainty remain key headwinds for oil-sensitive and cyclical sectors.

Long, Short, Long Unwinding & Short Covering: In the futures segment, fresh long build-up was seen in Apollo Hospitals, which gained 0.8% with open interest also rising 0.8%. Fresh short build-up was observed in Ujjivan Small Finance Bank, Godfrey Phillips, Enrin, Motilal Oswal Financial Services and Inox Wind, all of which declined while open interest increased. Long unwinding was visible in Eternal, Shree Cement, Maruti, TCS and HCL Technologies, indicating reduction in bullish positions. Short covering was seen in Swiggy, Adani Energy Solutions, Havells, Bandhan Bank and KFin Technologies, where prices declined alongside a reduction in open interest.

Top 5 News:

Reliance Industries – Jio IPO: Jio Platforms fixed its IPO issue price at rs 1,119 per share, implying a maximum gross issue size of Rs 30,213 crore. The IPO subscription closed on 23rd October, while the final prospectus was filed on 24th October. The issue is a major primary-market event and its listing is likely to influence liquidity and portfolio allocation across large-cap equities.
Infosys – FY27 Guidance Cut: Infosys reduced its FY27 constant-currency revenue growth guidance to 1–2% from 1.5–3%, while retaining its operating-margin guidance at 20–22%. Q2 revenue increased 10.7% YoY to Rs 49,244 crore and net profit rose 6.2% to Rs 7,823 crore, with large-deal TCV at $5.2 billion and 62% net-new business.

Welspun Corp – Rs 5,500 Cr Order: Welspun Tubular LLC secured an approximately Rs 5,500 crore order for coated line pipes for a Permian natural-gas pipeline project in the US. The project will serve a data-centre complex belonging to a major global hyperscaler, with manufacturing and execution scheduled during FY29. The order takes the company's global order book to a record approximately Rs 50,000 crore.
Netweb Technologies – AI Growth: Netweb Technologies reported Q2 FY27 revenue growth of 335.7% YoY to rs 1,323.3 crore and PAT growth of 334.8% to Rs 136.7 crore. AI systems contributed Rs 773.1 crore, or 58.4% of quarterly revenue, growing 1,068.1% YoY. The confirmed order book stood at Rs 2,629 crore, with an additional rs 652.5 crore L1 position.

KEC International – Rs 3,878 Cr Orders: KEC International announced Rs 3,878 crore of new orders, including Rs 2,872 crore from Power Grid and Rs 1,006 crore across other businesses. The Power Grid contracts include 765 kV transmission lines for evacuation of 8.5 GW of renewable energy from Gujarat, including the company's largest-ever India T&D order. FY27 YTD order intake has crossed Rs 13,500 crore, including around Rs 9,500 crore in T&D.

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