By 9:40 a.m. IST, the Nifty 50 edged down 0.14% to 26,155.75 and the BSE Sensex slipped 0.12% to 85,532.61. Both indices had closed less than half a percent below their September 2024 records in the previous trading session.
Market breadth was broadly negative. Fifteen of the sixteen major sectoral indices declined, led by metals, which fell 0.9%. Losses deepened after Hindalco Industries dropped 2.5% following a fire at Novelis’ aluminium facility in New York. Small-cap and mid-cap indices also retreated, each down roughly 0.4%.
Across the region, Asian equities fell 2.3%, reversing the previous day’s gains. The shift followed a slide in U.S. markets where stronger September job growth—coupled with a rise in the unemployment rate—dampened hopes of a near-term rate cut. Higher U.S. rates typically reduce the appeal of emerging markets such as India by narrowing yield differentials and tightening global liquidity.
Renewed concerns over stretched technology valuations further pressured U.S. stocks, overshadowing Nvidia’s better-than-expected quarterly performance and upbeat forecast.
Despite the soft opening, analysts said underlying momentum in Indian markets remains firm, supported by stable investment flows and an improving earnings trajectory. “The near-term outlook appears decisively bullish,” said Osho Krishnan, chief manager for technical and derivative research at Angel One, adding that record levels could be retested if dip-buyers step in.
In stock-specific moves, Mahindra & Mahindra gained 1.1% after unveiling ambitious targets for fiscal years 2020–2030, including an eightfold rise in revenue from SUVs and light commercial vehicles and a threefold expansion in its farm business. Sharda Cropchem advanced 4.1% after raising its FY26 revenue growth guidance to nearly 20%, up from 15%.