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Sensex, Nifty extend losses for 2nd straight day
Nov-06-2025

In a highly volatile trade, Indian equity benchmarks ended with losses on Thursday, marking their second consecutive decline, with broad-based profit-booking seen amid continued FII outflows, despite supportive Asian market. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,067.01 crore on Tuesday, according to exchange data.

Some of the important factors in trade:

India service sector slows in October: The seasonally adjusted HSBC India Services PMI Business Activity Index fell from 60.9 in September to 58.9 in October, indicating the slowest pace of expansion since May, as competitive pressures and heavy rains in parts of the country led to a slower increase in output, according to a monthly survey. 

India protects vulnerable sectors in FTAs: Commerce and Industry Minister Piyush Goyal said India consistently protects the interests of vulnerable sectors like dairy and MSMEs in free trade agreements. 

India to be third largest economy: Finance Minister Nirmala Sitharaman said India today stands out as a fast-growing economy and will soon be the third-largest in the world. 

Rupee rises against US Dollar: Indian rupee appreciated against the US dollar, supported by a weak American currency against major rivals overseas. However, subdued sentiment in domestic equity markets and continued outflow of foreign capital prevented further gain in the Indian currency.  

Global front: European markets were trading lower ahead of a key Bank of England interest-rate decision. Asian markets settled mostly higher as traders pondered the outlook for interest rates after the release of strong U.S. economic data and the announcement of 2025 election results. 

Finally, the BSE Sensex fell 148.14 points or 0.18% to 83,311.01 and the CNX Nifty was down by 87.95 points or 0.34% to 25,509.70. 

The BSE Sensex touched high and low of 83,846.35 and 83,237.65 respectively. There were 11 stocks advancing against 19 stocks declining on the index.   

The broader indices ended in red; the BSE Mid cap index fell 1.19%, while Small cap index was down by 1.53%.

The top losing sectoral indices on the BSE were Utilities down by 2.20%, Metal down by 2.03%, Power down by 1.96%, Basic Materials down by 1.76% and Realty down by 1.51%, while there were no gaining sectoral indices on the BSE. 

The top gainers on the Sensex were Asian Paints up by 4.76%, Reliance Industries up by 1.62%, Mahindra & Mahindra up by 1.02%, Ultratech Cement up by 1.00% and TCS up by 0.71%. On the flip side, Power Grid Corp down by 3.15%, Eternal down by 2.44%, Bharat Electronics down by 1.67%, Bajaj Finance down by 1.45% and ICICI Bank down by 1.21% were the top losers.

Meanwhile, with an aim to boost domestic output and reduce imports, the government has launched the third round of Production Linked Incentive (PLI) Scheme ‘PLI 1.2’ for speciality steel to attract investment in the sector. The Union Steel Minister H D Kumaraswamy has said that the PLI scheme for speciality steel was approved by the Union Cabinet in July 2021 to encourage production of high-value, high-grade steels used in sectors such as defence, aerospace, energy, automobiles, and infrastructure. Further, the scheme with a total outlay of Rs 6,322 crore aims to add about 26 million tonnes of speciality steel capacity over the next few years.

The minister highlighted that the scheme has attracted investment commitments worth Rs 43,874 crore in the first two rounds and is expected to add 14.3 million tonnes of new specialty steel capacity in India. As of September 2025, companies participating in the first two rounds have already invested Rs 22,973 crore and generated 13,284 jobs. He noted that the 'PLI 1.2' is designed to accelerate India's journey towards becoming a global hub for high-grade steel production. He added that the scheme will attract new investments in emerging and advanced categories such as super alloys, CRGO steel, stainless steel long and flat products, titanium alloys, and coated steels, materials that are essential for next-generation industrial and defence applications. The third round will also open up new avenues for both existing and new players, including MSMEs, who have expanded or upgraded their investment plans after the earlier rounds.

In order to encourage investors, there have been some relaxations in the current third round of this scheme. The scheme incentivises incremental production and investment in identified product categories, thereby enhancing value addition within the country and reducing import dependence in critical sectors, such as defence, power, aerospace and infrastructure. The incentive rates range from 4 per cent to 15 per cent, applicable for five years starting 2025-26, with disbursal beginning in the next fiscal. The base year for pricing has also been updated to 2024-25 to better reflect current trends.

CNX Nifty touched high and low of 25,679.15 and 25,491.55 respectively. There were 17 stocks advancing against 33 stocks declining on the index.    

The top gainers on Nifty were Asian Paints up by 4.64%, Reliance Industries up by 1.47%, Ultratech Cement up by 1.04%, Mahindra & Mahindra up by 0.95% and Wipro up by 0.90%. On the flip side, Grasim Industries down by 6.42%, Hindalco down by 5.39%, Adani Enterprises down by 4.50%, Power Grid Corporation down by 3.15% and Eternal down by 2.62% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 40.03 points or 0.41% to 9,737.05, France’s CAC fell 44.23 points or 0.55% to 8,030.00 and Germany’s DAX lost 45.74 points or 0.19% to 24,004.00. 

Asian markets settled mostly higher on Thursday tracking Wall Street’s gains overnight after Advanced Micro Devices third-quarter earnings beat lifted artificial intelligence-linked shares, while recent US economic data, specifically robust ISM services PMI figures and a stronger-than-expected ADP jobs data outweighed jitters over inflated tech stock valuations. Chinese shares gained after the country's ministry of finance raised $4 billion at rates equivalent to US Treasury yields in its return to the international bond market. Moreover, Japanese shares rose sharply as investors digested data that showed Japan's services sector continued its growth for the seventh consecutive month in October. The S&P Global final Japan Services Purchasing Managers’ Index (PMI) slipped slightly to 53.1 in October from 53.3 in September, maintaining a seventh consecutive month above the 50.0 mark, which separates growth from contraction.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

4,007.76

38.51

0.96

Hang Seng

26,485.9

550.49

2.12

Jakarta Composite

8,337.06

18.53

0.22

KLSE Composite

1,618.94

-2.61

-0.16

Nikkei 225

50,883.68

671.41

1.34

Straits Times

4,484.99

67.87

1.54

KOSPI Composite

4,026.45

22.03

0.55

Taiwan Weighted

27,899.45

182.39

0.66
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