Market Outlook - October 2025

Market Update

Equity Market Performance
Indian equities began September on a positive note,
with benchmark indices posting modest gains. The Nifty
advanced 0.8%, while the Mid-cap and Small-cap indices
gained 1.4% and 1.9%, respectively. Sectoral performance
was led by Metals (+9.4%), Auto (+5.9%), and Oil & Gas
(+5.4%) reflecting strong traction in cyclicals and industrials.
On the other hand, Consumer Durables (-4.9%), IT
(-3.6%), and FMCG (-2.4%) were the top laggards. Despite
intermittent volatility from global developments, market
sentiment remained constructive, supported by robust
domestic participation and strength in cyclical sectors.
Global Market Overview
Global equities delivered a mixed performance in September.
South Korea (+7.5%), Mexico (+7.4%), and Hong Kong
(+7.1%) emerged as top performers, whereas Germany
(-0.1%), Australia (-1.4%), and the Philippines (-3.3%)
lagged behind. In the U.S., equity markets initially reacted
positively to the Federal Reserve’s 25 bps rate cut, which
lowered the policy rate range to 4.00%–4.25%. However,
sentiment weakened after the Trump administration
announced a USD 100,000 one-time fee on H-1B visa
petitions and a 100% tariff on branded drug imports, which
adversely impacted global IT and pharmaceutical stocks.