No 100% China Tariffs: Nifty Rebounds to 25,966 on Bessent's Assurance

Indian benchmark indices rebounded strongly on Monday, reversing the effects of Friday’s profit-booking. Both the Nifty 50 and Sensex closed higher by 0.66% and 0.67% respectively. The rally was primarily attributed to renewed optimism surrounding a possible US-China trade agreement, with robust domestic buying absorbing minor selling by foreign institutional investors. The Nifty 50 closed at 25,966.05, posting a gain of 170.90 points (+0.66%), while the BSE Sensex settled at 84,778.84, up by 566.96 points (+0.67%). The indices opened on a positive note near the 25,843 mark and maintained their upward momentum throughout the session, reaching an intraday high of 26,005.95 before closing near the day’s peak.

Key Market Catalysts

The bullish sentiment in the market was largely spurred by US Treasury Secretary Scott Bessent’s announcement that President Trump’s proposed 100% tariffs on Chinese goods would not be implemented. In response, China agreed to increase soybean imports and postpone restrictions on rare earth exports. This alleviation of trade tensions boosted global markets and lifted investor sentiment across Asian equities.

Sectoral Performance

Broad-based participation was evident as broader indices outperformed the benchmarks:

Top Performing Sectors:

• Nifty PSU Bank: Led the rally with gains exceeding 1.5%, fuelled by optimism around credit growth and increased government expenditure.
• Nifty Realty: Rose over 1.5%, driven by a positive demand outlook.
• Nifty Metal: Registered a gain of 1.2%, supported by infrastructure spending themes.
• Nifty Oil & Gas: Advanced by 1.3%, tracking movements in crude oil prices.

Underperforming Sectors:

• Nifty Media: Declined by 0.8% due to profit-booking.
• Nifty Pharma: Fell 0.5%, impacted by sector-specific challenges.

Market Movers

Top Gainers (27-Oct-2025):

Top Losers (27-Oct-2025):

Notable SME/Midcap Movers:

FII/DII Activity (27-Oct-2025) - Validated Data

The market’s resilience was evident as strong domestic institutional buying absorbed minor profit-taking by foreign investors.

Key Insights:

• Domestic Institutional Investors (DIIs) were significant net buyers, injecting ₹2,492.12 crore and providing strong support to the market.
• Foreign Institutional Investors (FIIs) turned marginal net sellers, with a minor outflow of ₹55.58 crore.
• The nearly neutral FII activity marks an improvement from the persistent heavy selling seen in recent weeks, suggesting stabilising foreign sentiment.
• DIIs fully absorbed FII selling, driving net institutional buying of nearly ₹2,437 crore. This highlights the strength of domestic liquidity.
• The market’s ability to rally despite a lack of FII support demonstrates the maturity and conviction within India’s equity market ecosystem.

Market Turnover & Participation

Total Market Turnover (27-Oct-2025):

Key Observations:

• The equity segment saw robust activity, with 31.71 million trades and an average trade value of ₹30,435.
• Derivatives trading was driven by options, with 152 million Index Options contracts and 8.88 million Stock Options contracts changing hands.
• Open Interest in equity derivatives reached 24.94 million contracts, pointing to strong positioning in the market.
• Delivery-adjusted breadth indicates healthy consolidation following a sustained four-week rally.
• A rotation of market leadership into defensive sectors was observed, with softer delivery-backed moves and increased intraday churn.

Currency & Commodities

Exchange Rates (as at 1:00 PM IST):

The Indian Rupee remained under pressure against the US Dollar, trading near 88.06 levels, reflecting continued demand for foreign exchange. Crude Oil:

• Brent Crude held steady around $66.40 per barrel, supported by new US sanctions on Russian suppliers. Prices were up 8% over the previous week.
• This moderate price level benefits Indian oil marketing companies (OMCs) while keeping inflation-sensitive sectors stable.

Technical Outlook

Nifty 50 Technical View:

Technical Interpretation:

• Nifty has reclaimed the 25,950-26,000 resistance zone, now turning it into support.
• The index is forming higher tops and higher bottoms, signalling that bullish momentum is intact.
• Stochastic oscillators are in overbought territory on both daily and weekly charts, indicating the possibility of short-term consolidation at higher levels.
• Bank Nifty closed at 58,114.25 (+0.72%), reflecting improved participation from banking heavyweights after last week’s weakness.

Corporate Action Watch

Earnings Reported Today (Q2 FY26):

• Bata India
• Indian Oil Corporation
• Sona BLW Precision Forgings
• Mahindra Logistics
• SRF
• Indus Towers

Detailed analysis of earnings performance will be shared in the next morning brief. IPO Pipeline:

Stay informed. Stay invested.

Options Risk Warning: Options strategies carry significant risk of total loss. All strategies require proper position sizing, stop-losses, and individual risk assessment.

Compliance & Disclaimers:

This newsletter is for informational and educational purposes only and does not constitute investment advice. 'Provisional' data is subject to revision by sources and will be reconciled next trading day. Market investments carry inherent risks, and past performance does not guarantee future results. Readers should conduct independent research and consult qualified financial advisors before making investment decisions.

Proceed with titikṣā; conclude with upekṣā.