Market extends losses for second day as soft economic data weighs on sentiment

The domestic equity benchmarks fell for the second consecutive session on Thursday, as weak economic data and persistent foreign fund outflows weighed on investor sentiment. The Nifty 50 slipped below the 25,550 mark, extending losses despite largely positive cues from other Asian markets.

After opening lower, the index failed to sustain brief recoveries and drifted downward through the session, forming lower highs and lower lows on an intraday basis. Selling was broad-based, led by declines in metal and consumer durables stocks, while IT shares managed to stay resilient on the back of steady Q2 earnings and stronger U.S. macro indicators.

Investor confidence weakened as the latest PMI readings signaled a moderation in domestic growth momentum, countering optimism from firm global data. Broader indices also ended in the red, mirroring the weakness in large-cap stocks and suggesting that markets may be entering a near-term consolidation phase after their recent rally.

The S&P BSE Sensex declined 148.14 points or 0.18% to 83,311.01. The Nifty 50 index fell 87.95 points or 0.34% to 25,509.70. In the two trading sessions, Sensex and Nifty declined 0.79% and 0.98%, respectively.

Grasim Industries (down 6.21%), Adani Enterprises (down 4.34%) and ICICI Bank (down 1.21%) were major drags today.

The broader market underperformed the headline indices. The S&P BSE Mid-Cap index declined 1.19% and the S&P BSE Small-Cap index dropped 1.53%.

The market breadth was weak. On the BSE, 1202 shares rose and 3012 shares fell. A total of 156 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, was down 1.91% to 12.41.

Economy:

India's services sector continued to expand in October, though at a slower pace, with the HSBC India Services PMI easing to 58.9 from 60.9 in September. Despite the moderation, the index remained well above the neutral 50 mark and its long-run average of 54.3, signaling strong business activity and sustained growth momentum in the services economy, albeit at the slowest pace since May.

Competitive pressures and heavy rains were cited as contributors to the sequential slowdown. Input costs notably increased at the slowest rate in 14 months, which provided some relief for firms.

India's overall business activity grew strongly in October, though at a slightly slower pace, with the HSBC India Composite PMI easing to 60.4 from 61.0 in September. The data signaled a continued sharp expansion in both manufacturing and services output, but marked the softest pace of growth since May.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.37% to 6.506 from the previous close of 6.530.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 88.6100 compared with its close of 88.7700 during the previous trading session.

MCX Gold futures for 5 December 2025 settlement rose 0.52% to Rs 121,150.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.21% to 99.96.

The United States 10-year bond yield fell 0.48% to 4.139.

In the commodities market, Brent crude for December 2025 settlement advanced 45 cents or 0.71% to $63.97 a barrel.

Global Markets:

European shares declined as investors are awaiting central bank decisions from Norway and U.K. on Thursday

Asian shares ended higher on Thursday, tracking Wall Street gains after AMD's third-quarter earnings beat, which lifted artificial intelligence (AI) stocks.

Overnight, the Dow Jones Industrial Average gained 225.76 points, or 0.48%, to close at 47,311.00. The S&P 500 rose 0.37% to finish at 6,796.29, while the Nasdaq Composite advanced 0.65% to settle at 23,499.80.

Investors were paying attention to the Supreme Court hearing Wednesday regarding President Donald Trump's tariffs. At issue is whether the president had the authority to impose such duties under the International Emergency Economic Powers Act, or IEEPA.

The high court's justices focused their questions on the legality of the sweeping tariffs, with both conservative and liberal members asking Solicitor General D. John Sauer about the Trump administration's justification.

Equity investors received some encouraging data on the economy Wednesday with better ADP payrolls data and a stronger ISM services economy reading.

As per the ADP payrolls data, companies added 42,000 jobs for the month, following a decline of 29,000 in September. A revision for September showed 3,000 fewer jobs lost.

Meanwhile, the ISM services index rose to 52.4%, up from September's 50%, which is the breakeven point for overall expansion for the measure.

New Listing:

Shares of Orkla India ended at Rs 713.40 on the BSE, a discount of 2.27% compared with the issue price of Rs 730.

The stock was listed at Rs 751.50, exhibiting a premium of 2.95% to the issue price. The stock has hit a high of 755 and a low of 693.35. On the BSE, over 20.03 lakh shares of the company were traded in the counter.

IPO Update:

Billionbrains Garage Ventures (Groww) received bids for 59,28,55,500 shares as against 36,47,76,528 shares on offer, according to stock exchange data at 16:42 IST on Thursday (6 November 2025). The issue was subscribed 1.63 times. The issue opened for bidding on 4 November 2025 and it will close on 7 November 2025. The price band of the IPO is fixed between Rs 95 and 100 per share.

Stocks in Spotlight:

Hindalco Industries fell 5.16% after the company's wholly owned subsidiary Novelis Inc. warned of a $550-650 million negative free cash flow impact in FY26 following a fire at its Oswego plant in New York. The company disclosed in a regulatory filing that the incident, which occurred on 16 September 2025, may also result in an adjusted EBITDA hit of $100-150 million for the fiscal year. Hindalco said it has recognized $21 million in related charges in Q2 FY26, though it expects 70-80% of the losses to be recoverable through insurance in future periods.

Grasim Industries slumped 6.21% after Rakshit Hargave, CEO, Birla Opus Paints, stepped down to pursue opportunities outside the company. Meanwhile, the company 's consolidated net profit jumped 75.91% to Rs 553.48 crore on 16.59% increase in revenue from operations to Rs 39,899.58 crore in Q2 FY26 over Q2 FY25.

Interglobe Aviation (Indigo) added 0.93%. The company's consolidated net loss widens to Rs 2,582.1 crore in Q2 FY26, compared with net loss of Rs 986.7 crore in Q2 FY25, including the impact of currency movement pertaining to dollar based future obligations. Revenue from operations increased 9.34% to Rs 18,555.3 crore in Q2 Sept 2025, driven by strong operational execution and efficient capacity deployment.

Zydus Lifesciences declined 3.76%. The company reported 38.12% jump in consolidated net profit to Rs 1,258.60 crore in Q2 FY26, compared with Rs 911.2 crore posted in Q2 FY25. Revenue from operations increased 18.07% year on year (YoY) to Rs 6,037.9 crore in Q2 FY26.

Sun Pharmaceutical Industries shed 0.41%. The company has reported 2.6% rise in consolidated net profit to Rs 3,118 crore on a 8.6% increase in revenue to Rs 14,405.2 crore in Q2 FY26 as compared with Q2 FY25.

Britannia Industries advanced 2.08% after its consolidated net profit increased 23.14% to Rs 654.47 crore on 3.70% jump in total revenue from operations to Rs 4,840.63 crore in Q2 FY26 over Q2 FY25.

Redington surged 15.7% after its consolidated revenue for Q2 FY26 stood at Rs 29,118 crore, up 17% year-on-year, driven by robust demand across India, the Middle East, and Africa. Net profit jumped 32% YoY to Rs 388 crore, while EBITDA rose 23% YoY to Rs 632 crore.

Astral jumped 6.74% afteer its revenue from operations rose 15.1% year-on-year to Rs 1,577.4 crore, up from Rs 1,370.4 crore in Q2 FY25, driven by sustained demand in both core segments. Profit after tax (PAT) rose 24% YoY to Rs 134.8 crore, translating into a margin of 8.5%, up from 7.9% in Q2 FY25.

Nuvama Wealth Management rose 2.69% after its revenue from operations stood at Rs 772 crore, up 4% year-on-year from Rs 740 crore, supported by strong traction in wealth and asset management segments. Sequentially, revenue was marginally higher compared with Rs 770 crore in Q1 FY26. Operating profit before tax (PBT) came in at Rs 335 crore, down 4% YoY and 4% sequentially, while operating profit after tax (PAT) stood at Rs 254 crore, down 1% YoY and 3.8% QoQ.

Gujarat Pipavav Port jumped 5.56% after its revenue from operations rose 31.9% year-on-year to Rs 299.35 crore, compared with Rs 227.04 crore in Q2 FY25. Sequentially, revenue was up 19.5% from Rs 250.45 crore in Q1 FY26. Adjusted net profit (PAT) jumped 70.1% YoY to Rs 128.44 crore, compared with Rs 75.49 crore in the year-ago quarter, and 23.1% higher sequentially from Rs 104.33 crore in Q1 FY26.

Delhivery slumped 9.04% after the company reported a consolidated net loss of Rs 50.37 crore in Q2 FY26, compared with a net profit of Rs 10.20 crore in Q2 FY25. Revenue from operations increased 16.87% year on year to Rs 2,559.32 crore in Q2 FY26.

Avanti Feeds rallied 3.51% after the company's consolidated net profit jumped 34.87% to Rs 153.29 crore in Q2 FY26 as against Rs 113.65 crore in Q2 FY25. Revenue from operations increased 19.04% year on year to Rs 1,609.69 crore in the quarter ended 30 September 2025.

Garden Reach Shipbuilders & Engineers rose 1.13% after its standalone net profit surged 57.28% to Rs 153.78 crore in Q2 FY26, compared with Rs 97.77 crore in Q2 FY25. Revenue from operations jumped 45.48% YoY to Rs 1,677.38 crore during the quarter ended 30 September 2025.

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