Market Wrap: Sensex, Nifty Pare Early Gains To Close Marginally Higher, IT Leads

Domestic equities ended a volatile session on a flat note on October 23, after trading higher for most of the day. Benchmark indices gained over a per cent intraday, buoyed by positive global cues, however late selling in the final hours of trade pared most of the gains. The initial rally came after reports emerged that India and the US are reportedly close to finalising a trade agreement that could significantly reduce tariffs on Indian exports to around 15-16 per cent from the current 50 per cent, as reported by Mint. As part of the deal, India may also agree to gradually scale down its imports of Russian oil, the report added.

At close, the Sensex settled at 84,556.40, up 130.06 points, or 0.15 per cent, while the Nifty 50 ended at 25,891.40, up 22.80 points, or 0.09 per cent.

The broader market too failed to hold on to early gains. The Nifty Midcap 100 slipped 0.06 per cent and the Nifty Smallcap 100 closed 0.05 per cent lower.

Brokerage firm Bajaj Broking, in a post-market note, said uncertainty around global trade developments and the absence of fresh domestic triggers led to a profit booking.

IT Stocks Rally, Oil & Gas Falls

Among sectors, IT stocks led the rally, with the Nifty IT index surging 2.21 per cent as optimism around a potential India-US trade deal lifted investor sentiment.

The Nifty FMCG index climbed 0.29 per cent after sector heavyweight Hindustan Unilever Ltd (HUL) reported a nearly 4 per cent year-on-year (YoY) rise in net profit for the quarter ended September 30, 2025, beating market expectations.

On the other hand, the Nifty Oil & Gas index declined 0.57 per cent as shares of downstream oil companies came under pressure following a sharp, over 5 per cent surge in crude oil prices. The spike was triggered by fresh US sanctions on key Russian suppliers aimed at intensifying pressure on Moscow to end its war in Ukraine. Meanwhile, Nifty Auto, Nifty Financial Services, Nifty Pharma, and Nifty Consumer Durables indices ended largely unchanged.

Nifty Bank, which tracks the 12 most valuable and liquid bank stocks, gained 0.12 per cent to close at 58,078.05.

Nifty 50: Top Gainers & Losers

Among the top gainers in Nifty 50 index were Infosys, rising more than 3.50 per cent, followed by HCL Technologies and Tata Consultancy Services (TCS), each gaining between 2 per cent and 3 per cent. Shriram Finance, ONGC, Axis Bank, Wipro, Tech Mahindra and Kotak Mahindra Bank were also among the top gainers.

On the other hand, Eternal (formerly Zomato), tumbled nearly 3 per cent to emerge as the top loser of the session. Following it, Indigo, UltraTech Cement, Eicher Motors, Bharti Airtel, JSW Steel, Adani Ports, Tata Consumer Products, ICICI Bank, Reliance Industries and Cipla were other top losers, falling between 1 per cent and 2per cent.

Market Outlook

Market participants will closely track a series of key US macroeconomic data releases this week, including weekly initial jobless claims, September’s core consumer price index (CPI) inflation, and the Manufacturing and Services PMI readings. These indicators are expected to provide fresh cues on the health of the world’s largest economy and the Federal Reserve’s future policy trajectory.

Back home, market participants will keep an eye on further developments around the potential India-US trade deal.