October Diwali Dhamaka at Dalal Street as Market Rallies and What It Means for Safe SIP Investment

India's benchmark indices recorded their largest monthly increases in seven months in October, as robust corporate profits and attractive valuations attracted foreign investors.

In October, the Nifty 50 and the BSE Sensex increased by 4.5% and 4.6%, finishing only 2.1% and 2.4% lower than their record highs achieved in September 2024.

Foreign investors also ended three months of selling spree and bought $1.94 billion worth of shares in October. Every one of the 16 primary indices recorded increases for the month. The more domestically focussed small-caps and mid-caps increased by 4.7% and 5.8%, respectively.

Sectoral Peers

Public sector banks (PSU Banks) emerged as the top performers surging 8.7% driven by strong quarterly earnings and renewed investor interest in state-run lenders. Oil & Gas, Infrastructure, and IT also delivered robust returns of over 6%, supported by healthy earnings and optimism over policy-driven growth.

Private Banks posted gains of around 6%, reflecting sustained market breadth. Meanwhile, auto stocks were the month’s weakest performers, rising only 1%, as margin concerns and muted festive demand weighed on sentiment.

Other defensive sectors such as FMCG, Consumption and Pharma rose upto 3% in October. The rally was broad but led by cyclical sectors, signalling renewed confidence in India’s economic resilience and earnings outlook. For investors building portfolios through different types of mutual funds, this diversified performance reinforces the importance of sectoral balance.

FIIs Arrival

October marked a reversal of the sustained selling by FIIs seen in the previous three months. For October FIIs bought equity for Rs 3,902 crore through the exchanges. However, this figure included some bulk deals too.

The trend of sustained buying through the primary continued in October too with a buy figure of Rs 10,707 crore.

For 2025, so far, total FIIs investment through the primary market stands at Rs 54,292 crores. This is in sharp contrast to the total sell figure through exchanges till the end of October at Rs 1,94,201 crore.

However, the relatively higher valuations in India may prompt FIIs to sell again. Whether FIIs will buy or sell will depend on the trajectory of India’s corporate sector’s earnings growth.

IPOs

India’s initial public offering (IPO) market achieved a historic feat in October, marking the most active month for mainboard IPOs ever recorded. 14 IPOs launched in the market, aiming to raise over Rs 46,000 crore, the largest fundraising goal in any month in India's capital-market history.

Tata Capital secured over Rs 15,512 crore, whereas LG Electronics India garnered Rs 11,607 crore through their mainboard IPOs, together representing over half of the October total.

October's count exceeded the former record established in October 2024, when 6 IPOs garnered Rs 38,690 crore. The third-highest month is still November 2021, with 9 IPOs that raised Rs 35,665 crore, then comes November 2024 with 8 IPOs raising Rs 31,145 crore.

The blockbuster event highlights an unprecedented year for the primary market. Up to this point in 2025, 89 IPOs have garnered more than Rs 1.38 lakh crore, ranking behind 2024, when fundraising through IPOs surpassed Rs 1.6 lakh crore

SEBI Cheers Mutual Fund Investors

The October ended with cheerful news for SIPs investors as the Securities and Exchange Board of India (Sebi) proposed a fresh overhaul of mutual fund expenses, seeking to rationalise the total expense ratio (TER) and enhance transparency across the industry.

The proposals aim to make mutual funds more investor-friendly with and mark a corrective step to push the mutual fund industry towards greater efficiency and scale.

“Sebi’s primary objective is to protect investor's interest. They will always keep their interest on priority and steps like these are intended to promote mutual funds as an affordable instrument to invest. Lower the cost, better the returns for SIP investors,” said Ajay Patwari, Co-founder, MINTIT.

While these changes are still at the proposal stage, their implementation would mark a significant corrective step towards elevating the industry to new heights. For retail investors using a mutual funds mobile app, it will allow steady, automated investments regardless of market timing.

MINITIT Outlook For November

In October 2025, gold and silver prices made headlines by hitting new highs. Gold reached around ₹1,21,580 per 10 grams and silver touched ₹1,50,900 per kg by the end of the month. Earlier, prices were even higher—silver hit over ₹1,69,780 per kg in mid-October.

The main reasons for this rally were festive demand, global uncertainties, higher central bank buying, and strong inflows into precious metals ETFs. A weaker rupee and supportive global trends also boosted prices.

However, after a strong rally, both metals saw some profit-booking at the end of the month, leading to price corrections. This is normal; sharp rises often bring corrections as traders and investors take profits.

Silver outperformed gold this year, rising nearly 70% in value, driven by both investment demand and its use in industries like electric vehicles and green technologies.

Why Chasing Rallies Can Be Risky

Often, people get attracted to assets that have performed very well recently—this is called “chasing returns.” Jumping into gold or silver after a sharp rally can sometimes lead to losses, as prices may correct or become volatile.

After a big run-up, there is always a risk of a correction or prices moving in a range, which disappoints those who invested late expecting more quick gains.

Making decisions based only on the recent past can lead to wrong experiences, where investors buy high and sell low. Instead, stick to your personal financial plans and avoid getting swayed by market excitement.

What’s Expected in long term?

Gold and silver are likely to remain essential for diversification but will see cycles of ups and downs depending on global growth, inflation, and central bank policies.

Industrial demand for silver is expected to keep growing, especially from solar energy and electric vehicle sectors, which could mean higher prices over the long term.

Don’t try to time the market for quick gains. Regular investments—like SIPs in mutual funds or gold/silver funds—help you average out costs and benefit from India’s long-term growth.

Key Actionable Points for MINTIT Users

• Don’t rush to buy just because prices are surging. Sharp rallies are often followed by corrections.
• Keep precious metals as part of your overall allocation, ideally between 5–10% of your portfolio.
• Regular investments and discipline, not excitement or fear, help you build real wealth.
• Avoid large one-time bets on any asset class just because it is popular at the moment.
• Define your investment goals and purpose early—this helps keep greed in check and creates a clear path to success.
• Diversify between equity, debt, gold, and other classes—not just one sector or product.
• Staying invested, even in tricky times, will help you make the most of each market cycle.

Staying regular with SIPs and maintaining asset allocation, rather than chasing past winners, is the best way to add extra returns (“alpha”) to your portfolio and reach your life goals. Set your winning strategy, and let every investment, however small, build your future.

MINTIT, only dedicated mutual funds application, caters to your personalised goals and accompanies you to achieve your financial milestones. Depending on your profile it precisely suggests tailored investing plans to achieve your goals with the help of trusted financial advisors. 

Happy Investing !