Key Market Cues Likely To Guide Investor Sentiment This Week

After several sessions of gains, equity markets saw profit booking in the last week of October. The benchmark indices gave up almost all the gains made in the previous week.

The Sensex fell 0.32 per cent, while the Nifty 50 declined 0.28 per cent during the week. At the close on October 31, the Sensex was down 465.75 points, or 0.55 per cent, at 83,938.71, and the Nifty 50 was lower by 155.75 points, or 0.60 per cent, at 25,722.10.

Trading during the week was influenced by several key factors, including progress in the US-China trade talks, the Securities and Exchange Board of India’s (Sebi) overhaul of the Total Expense Ratio (TER) structure, the US Federal Reserve’s 25 basis point rate cut, and other domestic and global cues.

India-US Defence Deal

India and the US on October 31, 2025, post-market hours, signed a 10-year agreement to strengthen defence and strategic ties. The deal comes as both nations work to resolve trade differences and ease tensions after US President Donald Trump imposed 50 per cent tariffs on Indian goods, including a 25 per cent penalty for buying Russian oil and weapons.

The agreement, which provides a roadmap for deeper defence collaboration, is expected to draw investor attention to shares of defence companies in the upcoming sessions.

US Macro Data

Investors will keep an eye on key US macroeconomic numbers this week. On November 3, the Manufacturing PMI and ISM Manufacturing PMI data will be released, both important indicators of industrial activity and overall economic health. The reports are expected to offer clues on the strength of the US manufacturing sector amid lingering economic uncertainties.

Later in the week, on November 5, ADP Nonfarm Employment, ISM Non-Manufacturing PMI, and Services PMI data are due, which will offer further insight into the strength of the labour market and services sector.

Car Sales Hit Record High

Car sales in India hit a record high in October, led by festive season offers and lower Goods and Services Tax (GST) rates that drew more buyers to showrooms. According to initial industry estimates, automakers sold around 4.7 lakh cars, sedans, and SUVs during the month. This figure is about 17 per cent higher than the same period last year.

In India, carmakers typically report wholesale numbers, vehicles sent from factories to dealers rather than actual retail sales.

Q2 Earnings

During the week, as many as 612 companies are set to report their quarterly results for the period ended September 30.

Major companies such as Tata Motors, Godrej Consumer Products, Lupin, Adani Wilmar, Britannia Industries, and Marico will announce their results on November 4. Eicher Motors, Bata India, and Paytm’s parent company One97 Communications will release their earnings on November 5.

On November 6, Siemens, Aditya Birla Capital, and UPL are scheduled to report their numbers, while Zee Entertainment, JK Tyre, and PNB Housing Finance will declare their results on November 7.