Market Cues This Week: Q2 Earnings, US-China Trade Talks Among Other Factors To Watch Out For

The Indian stock market ended the week ending October 17, 2025, on a strong note, with the Nifty 50 and Sensex gaining 1.56 per cent and 1.76 per cent, respectively. The indices closed at 25,709.85 and 83,952.19, extending the rally that has seen Nifty 50 hit fresh 52-week highs and the Sensex surge over 1,900 points in just three sessions.

October has emerged as one of the strongest months in recent times, with the Sensex up nearly 4.59 per cent and the Nifty 50 up 4.46 per cent month-to-date (MTD). The rally was led by heavyweight banking stocks, renewed foreign institutional investor (FII) inflows, and positive global cues, such as progress in the India-US trade deal, and expectations of a US Federal Reserve rate cut.

Meanwhile, domestic institutional investors (DIIs) bought Rs 16,247 crore during the week, while foreign institutional investors (FIIs) contributed inflows of Rs 556 crore, according to data from the National Securities Depository.

In the truncated week ahead, from October 20-24, several factors are likely to guide investor sentiment on D-Street. 

Here’s a quick glimpse at these. 

Notably, stock exchanges, National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), will remain closed on October 21 and 22, on account of Diwali. However, a special one-hour session for Muhurat Trading will be conducted by both the exchanges on October 21, from 1:45 PM to 2:45 PM IST.

Key Market Cues To Watch

Pakistan-Afghanistan Ceasefire: Pakistan and Afghanistan have agreed to an immediate ceasefire, Qatar’s foreign ministry said early on October 19. The talks, also mediated by Turkey, aim to end a week of intense border clashes that killed dozens and injured hundreds.

According to Qatar, both sides will hold follow-up meetings in the coming days “to ensure the sustainability of the ceasefire and verify its implementation in a reliable and sustainable manner.” The clashes mark the worst confrontation between the two neighbours since the Taliban returned to power in Kabul in 2021.

The development is likely to ease geopolitical concerns in the region.

Q2FY26 Earnings: Market participants will react to Q2 results announced by major companies over the weekend, including Reliance Industries, HDFC Bank, and ICICI Bank. Investors will also focus on Q2 earnings from Hindustan Unilever (HUL), SBI Life Insurance, Dr Reddy’s Laboratories, and SBI Cards and Payment Services in the coming week.

US-China Trade Talks Next Week: The next round of US-China trade talks will take place next week. Treasury Secretary Scott Bessent and Vice Premier He Lifeng will try to reduce tensions between the two countries.

Bessent spoke with He virtually on October 17 evening and called the talks “frank and detailed.” He confirmed that they will meet in person next week, with US Trade Representative Jamieson Greer also taking part.

“He and I, and a delegation, will meet in Malaysia, probably a week from tomorrow, to prepare for the two presidents to meet,” Bessent said. Market participants will be watching the outcome closely, as easing trade tensions between the world's two largest economies could improve global market sentiment.

US Macroeconomic Data Releases: The US is set to release several key macroeconomic data points, including the manufacturing and services Purchasing Managers’ Index (PMI) and new home sales data.

Market participants will be watching these numbers closely, as they could influence global sentiment and impact foreign fund flows.