The selling pressure on Dalal Street increased during the week ending October 25, resulting in a decline of over 2% in the benchmark indices. This decline was driven by geopolitical tensions, disappointing September quarter earnings, and significant outflows from foreign institutional investors (FIIs).

The BSE Sensex closed below the psychological mark of 80,000 at 79,402, while the Nifty 50 fell 2.7% to 24,181, reaching its lowest level since late June. The broader markets were also affected, with the Nifty Midcap 100 and Smallcap 100 indices down 5.75% and 6.5% respectively.

As the Diwali week approaches, market sentiment is expected to remain bearish, with a focus on upcoming corporate earnings and key U.S. economic data, including GDP figures. Investors are being cautious ahead of the U.S. presidential elections on November 5. The expiration of monthly Futures & Options contracts is set for Thursday, which is expected to add to the market's volatility. Major sectors such as banking, FMCG, automotive, pharmaceuticals, metals, oil & gas, and real estate experienced significant declines ranging from 2.5% to 7% during the week.