The domestic equity benchmarks traded with modest losses in the mid-morning trade after the government refrained from confirming reports of a potential US-India trade deal, weighing on market sentiment. The Nifty traded below the 25,850 mark. Private bank shares declined after advancing in the past trading session.

At 12:30 IST, the barometer index, the S&P BSE Sensex, declined 162.12 points or 0.19% to 84,394.28. The Nifty 50 index fell 54.45 points or 0.21% to 25,838.95.

In the broader market, the S&P BSE Mid-Cap index rose 0.01% and the S&P BSE Small-Cap index shed 0.07%.

The market breadth was negative. On the BSE, 1,745 shares rose and 2,222 shares fell. A total of 187 shares were unchanged.

Economy:

The HSBC Flash India Composite PMI Output Index fell to 59.9 in October from 61.0 in September (final), pointing to a moderation in private sector growth. The Services PMI Business Activity Index also eased to 58.8 from 60.9, while the Manufacturing PMI rose to a two-month high of 58.4 compared with 57.7 in September. The Manufacturing Output Index increased further to 62.4 from 61.1, indicating robust factory production.

The latest HSBC Flash PMI data highlighted the weakest expansions in aggregate new orders and output since May 2025, with international sales also rising to a lesser extent. Meanwhile, the rate of job creation was the joint-softest in a year and a half. Price trends were mixed, with input costs increasing at the weakest pace since June and charge inflation quickening since September. Businesses remained optimistic regarding growth prospects, though sentiment faded at the start of the third fiscal quarter.

Pranjul Bhandari, Chief India Economist at HSBC, said: The HSBC flash manufacturing PMI picked up a tad, likely on the back of GST rate cuts which are buoying domestic demand and curbing cost pressures. New orders and output, both, are above the average Jan-Jul levels. However, the drag from US tariff continues to show up in new export orders and future optimism, which remain below the Jan-Jul levels.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, shed 0.57% to 11.67. The Nifty 20 October 2025 futures were trading at 25,912, at a premium of 73.04 points as compared with the spot at 25,838.95.

The Nifty option chain for the 20 October 2025 expiry showed a maximum call OI of 231.4 lakh contracts at the 26,000 strike price. Maximum put OI of 183.9 lakh contracts was seen at 25,800 strike price.

Buzzing Index:

The Nifty Private Bank index shed 0.69% to 28,370.15. The index rose 0.49% in the past trading session.

Kotak Mahindra Bank (down 2.35%), Axis Bank (down 1.13%), IndusInd Bank (down 0.78%), HDFC Bank (down 0.67%), IDFC First Bank (down 0.66%), and Yes Bank (down 0.09%) fell.

On the other hand, ICICI Bank (up 1.08%), Federal Bank (up 0.46%) and Bandhan Bank (up 0.46%) edged higher.

Stocks in Spotlight:

South India Paper Mills surged 15.85% after the company reported a consolidated net profit of Rs 2.81 crore in Q2 FY26 compared with a net loss of Rs 1.21 crore in Q2 FY25. Revenue from operations increased 9.62% YoY to Rs 111.56 crore in Q2 September 2025.

PTC India Financial Services soared 14.34% after the NBFC's consolidated net profit jumped 86.18% to Rs 88.14 crore in Q2 FY26 from Rs 47.34 crore reported in Q2 FY25. However, total revenue from operations declined 19.32% year-on-year to Rs 131.84 crore in the quarter ended 30 September 2025.

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