The Indian stock market closed with sharp losses for the second consecutive session on July 25. The Sensex declined 721 points, or 0.88 percent, to end at 81,463.09, while the Nifty 50 shed 225 points, or 0.90 percent, to settle at 24,837.
The sell-off was broad-based, with midcap and smallcap segments witnessing steeper declines. The BSE Midcap index fell 1.46 percent, and the Smallcap index dropped 1.88 percent.
Investor wealth eroded by nearly ₹6.5 lakh crore in a single day, as the total market capitalisation of BSE-listed companies fell from ₹458.11 lakh crore in the previous session to ₹451.7 lakh crore.
Weak earnings, delays in the India–US trade deal, continued foreign capital outflows, and stretched domestic valuations were the key factors behind the downturn.
“Subdued corporate results and lacklustre global cues triggered a broad-based sell-off across domestic equities. Elevated valuations in large-cap stocks, coupled with significant net short positions held by FIIs, added to the downward pressure,” said Vinod Nair of Geojit Financial Services.
“Investor sentiment remained fragile amid uncertainty over US–India tariff negotiations and the ECB's decision to maintain the status quo on interest rates. The possibility of future rate cuts hinges on better clarity regarding the inflationary impact of global trade developments. Additionally, DII inflows have moderated after heavy buying in recent months, and persistent FII selling continues to weigh on the market,” Nair added.
Only seven stocks ended in the green. Cipla rose 3.17 percent, SBI Life Insurance gained 2.07 percent, and Apollo Hospitals advanced 1.50 percent, topping the list of gainers.
Bajaj Finance led the losers with a fall of 4.81 percent, followed by Shriram Finance (down 3.64 percent) and IndusInd Bank (down 2.64 percent).
Apart from Nifty Healthcare (up 0.69 percent) and Pharma (up 0.54 percent), all other sectoral indices ended in the red. Nifty Media fell 2.61 percent, Oil & Gas dropped 1.96 percent, PSU Bank declined 1.70 percent, and Metal shed 1.64 percent.
Nifty Bank and Financial Services fell 0.94 percent and 0.88 percent, respectively.
Jayaswal Neco Industries (34.72 crore shares), Vodafone Idea (23.83 crore shares), and Ola Electric Mobility (13.61 crore shares) were the most actively traded stocks on the NSE by volume.
Despite the negative market sentiment, 15 BSE-listed stocks gained more than 10 percent. These included The Phosphate Company, Aashka Hospitals, Sharda Cropchem, Kellton Tech Solutions, Sharika Enterprises, and Vimta Labs.
B-Right Realestate, Eighty Jewellers, Jonjua Overseas, and Hexaware Technologies were among the seven stocks that fell over 10 percent.
Of the 4,154 stocks traded on the BSE, 1,116 advanced, 2,893 declined, and 145 remained unchanged.
Despite the broader decline, 111 stocks touched their 52-week highs in intraday trade. These included ICICI Bank, eClerx Services, Home First Finance Company India, Laurus Labs, Sai Life Sciences, Shyam Metalics and Energy, and Torrent Pharmaceuticals.
Praveen Dwarakanath of Hedged.in, said that the Nifty had dropped sharply from its resistance at 25,200 and closed near its support at 24,800, suggesting a possible rebound from current levels.
He noted that the index had ended near the lower Bollinger Band, a technical support zone that could lead to a bounce. Momentum indicators also signalled oversold conditions, reinforcing the likelihood of a short-term upward move.
Dwarakanath added that the Nifty is currently in a strong weekly buy zone between 24,600 and 24,800, and a bounce from here could offer a selling opportunity near the 25,200 mark.
(By arrangement with livemint.com)
