Festive Fervor Meets Market Fireworks! Diwali Muhurat, Big Bank Earnings & FII Comeback Set the Stage for a Sparkling Week

Overview

• Weekly Momentum: The BSE Sensex advanced 0.58% to close at 83,952, and the Nifty 50 gained 0.49% to 25,709 for the week ended October 17, fueled by banking and FMCG rallies, though IT and media sectors lagged due to profit-booking.

• Broader Resilience: Nifty Midcap 100 and Smallcap 100 dipped 0.4% each, reflecting caution in metals and PSUs, while auto, healthcare, and consumer durables rose 0.5-1% on rural demand signals.

• Flows Reversal: FIIs net bought Rs 1,308 crore on October 9 and Rs 459 crore on October 10, marking a shift from September's Rs 30,509 crore outflows; DIIs added Rs 1,708 crore, ensuring market stability.

• Global Flat: US indices unchanged post-Fed's September cut; Asian markets mixed, with Nikkei up 0.5% on BoJ policy, and rupee steady at 86.45 vs USD.

• Special Highlight: Diwali Muhurat Trading on October 21 (Tuesday) from 1:45 PM to 2:45 PM IST, a symbolic one-hour session marking the Hindu New Year (Samvat 2082). This year's afternoon slot breaks tradition, with pre-open from 1:30 PM and trade modifications until 2:55 PM across equities, F&O, commodities, and currency.

• Markets closed on October 21 (Diwali) and October 22 (Balipratipada); historically, Sensex has risen in 14 of the last 18 sessions.

📅 Weekly Events Calendar

💡 DO YOU KNOW?

Muhurat Trading, originating in 1957 with BSE's adaptation of the traditional "chopda pujan" ritual, symbolizes prosperity for the new financial year; in 2025, the afternoon timing enhances accessibility, with transactions settling normally.

Important Observations and Market Sentiments: Editor Special

• Muhurat Trading Buzz: The October 21 session (1:45-2:45 PM) draws symbolic trades for luck, with equities, derivatives, and SLB active; past trends show positive closes, potentially lifting sentiment amid Q2 wrap-up.

• Q2 Earnings Climax: Over 25 reports, including HDFC Bank/ICICI Bank (Oct 21) and FMCG trio HUL/Nestle/Dabur (Oct 24); 4.6% growth expected, but banking surprises could propel Nifty to 26,000.

• Inflation RBI Cues: WPI (Oct 20) and flash PMI (Oct 22) pivotal for RBI's neutral stance; easing to 2.5% YoY may trigger October cut, favoring realty/autos.

• Fed Liquidity Boost: September's 25 bps cut sustains EM flows; US PCE (Oct 24) at 2.6% forecast reinforces December cut odds (75%), aiding FII return.

• FII Pivot: October's net buys (Rs 1,767 crore cumulative) ease September's selloff pain, driven by inflation relief; DIIs' Rs 40,000 crore monthly inflows act as a shock absorber.

👀Stocks to Focus:

• Banking: HDFC Bank and ICICI Bank, for Q2 NII amid rate-cut optimism.

• Cement: UltraTech Cement, eyeing capacity expansions and infrastructure tailwinds.

• FMCG: HUL, Nestle India, and Dabur, capturing rural revival from a 90% normal monsoon.

• Power: Reliance Power, linked to energy trends and trade exemptions.

📜 Summary:

The week of October 20-24, 2025, centers on Diwali Muhurat Trading (Oct 21, 1:45-2:45 PM), blending tradition with finance amid Q2 earnings from HDFC/ICICI Bank and FMCG leaders. Inflation data (WPI Oct 20) and US PCE (Oct 24) will shape RBI/Fed paths, with FII buys signaling a thaw. Nifty's bullish hold above 25,200 eyes 25,800; holidays (Oct 21-22) add brevity, but opportunities in banking, cement, and FMCG shine amid global easing and domestic festivity.

🚀 Stay cautious, watch key events, and trade wisely!

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