Markets Pause After Six-Day Rally, Nifty and Sensex Slip as Profit Booking Sets In

Indian benchmark indices snapped their six-day winning streak, heading lower by mid-morning amid widespread profit-taking. At around 10:27 a.m., the Sensex was down approximately 400 points, while the Nifty hovered just under the 24,950 mark. Pressure from auto, banking, metal, and IT sectors dragged the benchmarks lower, while the broader market also mirrored weak trends.

At the opening bell, the Nifty 50 dipped about 0.3 percent to around 25,015, while the Sensex declined by a similar margin to 81,794. The cautious start reflected investor hesitation after a strong week-long rally, with participants choosing to book profits at elevated levels. Analysts suggested that the rally had run into resistance on the back of global trade concerns. Rising risks of a 25 percent U.S. tariff, which now appears increasingly likely, have heightened investor anxiety. Experts noted that if implemented, such a levy could impact India’s growth outlook more severely than earlier projected. While reciprocal tariffs were previously expected to shave 20–30 basis points off growth, the broader implications may be more significant. However, the relative resilience of large-cap stocks is being viewed as a positive trend, one that provides stability in a volatile environment.

Sectoral performance remained mixed. Defensive segments such as pharmaceuticals, media, energy, and consumer durables posted modest gains, while FMCG and real estate stocks were largely flat. In contrast, metals, banking, IT, oil and gas, and auto shares came under selling pressure, pulling the broader indices down. The India VIX rose by nearly 2 percent, reflecting a pick-up in volatility. Midcap and smallcap indices also traded in the red, showing that the weakness extended beyond large-cap counters.

Among individual stocks, Apollo Hospitals Enterprises slipped about 1 percent after promoter and managing director Suneeta Reddy sold 1.32 percent of her stake through a block transaction. The deal, involving close to 19 lakh shares worth nearly ₹1,489 crore, was executed at a floor price of ₹7,850 per share, according to exchange data. Hindustan Unilever also edged lower after announcing a major leadership change. The company said Niranjan Gupta will take over as Chief Financial Officer and Executive Director (Finance) from November 1, succeeding Ritesh Tiwari, who has been elevated as Global Head of M&A and Treasury at Unilever Plc.

Despite the weakness, the technical outlook for Nifty remains constructive. Analysts pointed out that the index continues to form higher lows, suggesting steady buying support. They added that while the market may enter a consolidation phase, a sustained move above 25,150 could trigger another leg higher toward 25,250, potentially leading to short-covering by call writers. The support zone has shifted upward, with the 24,850 to 25,000 band now acting as a key demand area. Unless the index decisively breaches these levels, market participants expect the bulls to retain control. Traders continue to prefer a buy-on-dips strategy while waiting for a breakout above 25,150 to confirm fresh upward momentum.

In terms of stock movers, L&T, Bajaj Finance, M&M, Jio Financial Services, and Cipla were among the top gainers on the Nifty. On the losing side, SBI Life Insurance, Grasim, Hero MotoCorp, Asian Paints, and HCL Technologies were the major drags, reflecting the mixed sentiment across sectors.