Indian Markets Pause After Four-Week Rally

Indian markets ended their four-week winning streakinthefirstweekofNovember2025,withthe Niftydeclining0.65%andtheSensexfalling0.55%to closeat25,722and83,938, respectively,markinga pauseintherecentrallyamidprofit-taking.

Sentiment turned cautious after the US Federal Reservecut itsbenchmarkinterestrateby25basis pointstothe3.75%-4%range.TheFedhintedthat this25-bpscutmightbethefinalonein2025,which dampenedhopesoffurthernear-termeasing.

TheUSearningsseasonexceededexpectations,with 83% of S&P 500 companies beating analyst estimates thehighest percentage sinceQ22021. The blended earnings growth rate for the third quarter reached 10.7%, marking the fourth consecutivequarter of double-digit year-over-year growth. Technology stocks led gains, particularly after Amazon reported strong cloud computing resultswithAWSrevenueincreasing20%inthethird quarter,exceedingWallStreetestimates.

Inasignificantdevelopment, President Trumpand Chinese President Xi Jinping reached a landmark tradeagreementonOctober30inSouthKorea.The deal includes a 10-percentage-point reduction in fentanyl-relatedtariffsonChinesegoods(from20% to 10%), bringing the total tariff rate down to approximately47%from57%.

Chinacommittedtosuspendingthenewrare-earth export controls announced onOctober 9 and to issuinggeneral licensesfortheexportofrareearths, gallium,germanium,antimony,andgraphite.

Niftyispoisedtoopenlowerandbreachtheswing lowsupportat25,718,establishedonOctober24th, 2025. However, it is likely toremainabove its20 DEMAat 25,590,whichshouldprovidenear-term support.Ontheupside, the26,000-26,100zone is expectedtoremainaresistance.