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Below the Quote on Weekly Market Outlook  07th November 2025 from Vinod Nair, Head of Research at Geojit Investments Limited

"Indian equity markets ended on a negative note amid the absence of fresh domestic catalysts and continued FII outflows. Select sectors found support from upbeat Q2 earnings, with PSU banks remaining in focus due to robust financial performance, improving asset quality, and renewed speculation regarding a potential FDI cap hike and sector consolidation. However, IT and metal stocks came under pressure, weighed down by weak global cues and fading expectations of a Fed rate cut.

On the global front, investor sentiment remained cautious amid uncertainty surrounding trade and tariff discussions. Domestically, PMI readings were mixed, while GST collections remained resilient despite rate rationalization—indicating sustained economic momentum and optimism around corporate earnings upgrades. Meanwhile, gold has declined from its recent highs owing to stronger U.S. dollar and easing geopolitical tensions.

Going ahead, market direction will depend on upcoming domestic inflation data, FII flows, developments related to the U.S. government shutdown, and progress in trade negotiations involving the U.S., India, and China. A buy-on-dips strategy appears prudent, as results from most Nifty 50 companies reported so far have been largely in line with estimates, and continued policy support is expected to support current premium valuations and potentially drive earnings upgrades."

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