Stock Market Outlook for November 3, 2025: Nifty Likely to Stay Positive Amid Global Cues & Q2 Earnings Report

After a volatile week marked by alternating gains and profit booking, Indian equities are poised for a cautiously optimistic start on Monday, November 3, 2025, as investors track global developments, key corporate earnings, and the US Federal Reserve's policy outcome.

Stock Market Outlook For 3 November 2025

On Friday, markets staged a recovery led by renewed optimism around a potential India-US trade deal and ahead of the much-awaited Federal Reserve policy decision. The Nifty 50 closed at 26,053, gaining 117 points (0.5%), while the Nifty Midcap100 and Smallcap100 advanced 0.6% and 0.4%, respectively.

"Indian equities recovered on Wednesday, buoyed by optimism over a potential India-US trade deal and ahead of the US Federal Reserve's policy outcome," said Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd. He added that sectoral gains were broad-based, with Oil & Gas (+2%), Metals (+1.7%), Media (+1.6%), and FMCG (+0.9%) leading the rally, while Auto stocks lagged behind, slipping 0.7%.

Technology shares saw renewed buying interest, while capital market stocks fell nearly 2% after SEBI's proposed mutual fund regulation changes raised concerns over potential revenue and margin compression for asset management companies, brokerages, and distributors.

On the institutional front, Foreign Institutional Investors (FIIs) remained strong buyers, infusing Rs 10,340 crore into equities - the highest single-day inflow since June 26, 2025. Meanwhile, Brent crude prices eased slightly to USD 64.35 per barrel, providing additional comfort to the market.

"Optimism around trade progress, upcoming earnings, and sustained FII inflows is expected to lend support to near-term market sentiment," Khemka noted, adding that markets will now look to earnings announcements from key companies like ITC, NTPC, Adani Power, DLF and Hyundai Motor, which are expected to set the tone for the next trading session.

Previous Session Decline and Global Factors

However, before the midweek rebound, Indian benchmark indices had ended lower on October 31, marking a phase of profit booking after a strong rally earlier in the month. According to a Bajaj Broking Research report, "Indian benchmark indices closed lower on October 31st, with the Nifty slipping below the 25,750 mark. Following a strong rally, markets have entered a phase of profit booking, with most positive economic developments already priced in."

The report further noted that the Trump-Xi summit offered only a short-lived pause in US-China trade tensions, doing little to ease macroeconomic uncertainty. At the close, the Sensex fell 465.75 points or 0.55% to 83,938.71, while the Nifty 50 dropped 155.75 points or 0.60% to 25,722.10.

Sectorally, PSU banks outperformed with a 1.5% gain, while power, metal, and media indices slipped around 1% each. The IT, private banking, and healthcare sectors also witnessed minor declines of about 0.5% each, reflecting mixed market sentiment. The Midcap index dipped 0.45%, and the Smallcap index fell 0.48%, indicating mild selling pressure across broader markets.

Nifty Prediction Today for November 3, 2025: Nifty May Stay Range-Bound With Positive Bias

Looking ahead to Monday, November 3, analysts expect markets to open on a steady to positive note, supported by robust FII inflows, lower crude prices, and strong domestic fundamentals. However, caution may prevail ahead of the US Federal Reserve's rate decision and key domestic earnings releases.

The Nifty 50 is expected to find support near 25,900-25,950, with resistance around 26,150-26,200 levels. On the other hand, the Sensex may trade in a range of 83,700-84,300.

"The near-term outlook for Indian equities remains constructive, supported by steady foreign inflows and improving global risk appetite," Khemka said. "However, investors should remain watchful of global central bank commentary, particularly from the Fed, as it could influence short-term volatility."

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