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Sensex dips, Nifty holds steady as earnings and trade talks shape market mood


The Indian stock market on July 18, 2025, trades with slight weakness, reflecting cautious investor behavior. Benchmark indices open flat, with the BSE Sensex hovering near 82,100 and the NSE Nifty50 staying close to 25,080. The session starts with low volatility as traders react to mixed earnings results, global signals, and uncertainties surrounding international trade talks.

Sensex: Trading in the range of 82,140 to 82,160, showing a mild decline of 100–250 points.

Nifty50: Fluctuating between 25,080 and 25,100, down by around 0.15% to 0.30%.

Despite positive global signals, Indian indices remain under pressure due to cautious sentiment about corporate earnings and trade developments between India and the United States. Investors are also closely watching the results of several large companies, which are expected to influence the market’s direction in the coming sessions.

Factors Influencing the Market Today

Global Market Influence


The US reported better-than-expected retail sales data and a drop in unemployment claims. These indicators lifted most Asian markets, providing a positive base. However, the Indian market does not follow the same momentum due to local earnings and concerns over possible US tariffs on Indian exports.

Corporate Earnings Impact

Several major Indian companies are releasing their April–June (Q1) earnings this week. Banks, IT firms, and industrial companies are at the center of attention.

Axis Bank reports weaker numbers with rising bad loans, causing its stock to drop by around 5%.

Wipro posts strong earnings supported by better demand in international markets, pushing its stock higher by over 3%.

Reliance Industries and JSW Steel are expected to announce their results later today, which may impact index movement.

Volatility and Sentiment

The India VIX, which measures market volatility, drops to 11.2 — its lowest level in over a year. This shows that traders expect the market to stay calm in the short term. However, this low volatility can also mean that sudden news or events may cause sharp movements.

Institutional Activity

Foreign investors continue to sell Indian stocks, pulling out around ₹3,700 crore. This trend reflects concerns about valuation and global interest rates. Meanwhile, domestic institutional investors (like mutual funds and insurance companies) buy equities worth around ₹2,820 crore, helping to balance the market.

A leading global investment bank downgrades India’s stock market rating from “overweight” to “neutral,” citing high valuations and lower earnings growth expectations. This downgrade adds pressure to the broader market mood.

Sector-wise Performance

Banking and Financial Services

The banking sector faces pressure due to weak earnings from Axis Bank.

Other private sector banks like Kotak Mahindra Bank and SBI Life also trade lower.

The overall financial services index is down nearly 0.5%.

Information Technology (IT)

Wipro leads the IT pack with a gain of over 3% after reporting strong earnings.

LTIMindtree and HCL Technologies trade lower due to concerns over rising costs and weak guidance.

The Nifty IT index trades in a narrow range, showing mixed sentiment across IT companies.

Metals and Industrials

JSW Steel remains in focus. Analysts recommend buying the stock due to falling raw material prices and a large expansion plan worth ₹60,000 crore.

Reliance Industries, which showed weakness in the previous session, is expected to regain strength after announcing its Q1 results.

Mid-cap and Small-cap Stocks

Nuvoco Vistas, a mid-cap cement manufacturer, gains about 4% after reporting a 9% rise in revenue and net profit of ₹133 crore.

Analysts expect mid-cap stocks to perform better in the coming weeks, driven by local consumption and infrastructure development.

Pharmaceutical Stocks

Venus Remedies sees strong buying interest and gains 26% over the past month.

Zydus Lifesciences reports 19% revenue growth, reflecting the sector’s steady demand and strong fundamentals.

Other Stocks to Watch

UPL Ltd and Varun Beverages are highlighted by analysts as promising stocks under ₹100 due to favorable technical patterns and expected earnings improvement.

Technical Levels to Watch

Nifty50

Currently trading below its 10-day and 20-day exponential moving averages.

Resistance lies between 25,250 and 25,350.

Immediate support is at 25,000.

Sensex

Facing resistance at 82,350.

Support range lies between 82,000 and 82,100.

These technical levels suggest a consolidation phase. A breakout above resistance could lead to a strong upward move, while a fall below support may invite selling pressure.

Risks and Concerns

Trade Tensions: Discussions around new US tariffs on Indian exports cause uncertainty. A negative outcome could impact export-oriented sectors.

Banking Sector Worries: Rising non-performing assets and weak quarterly results from key banks create a drag on financial stocks.

Global Headwinds: While volatility is low now, it can quickly rise if any global economic or geopolitical event takes place.

Valuation Warnings: Indian stocks are trading at high price-to-earnings ratios, which might limit further upside unless earnings improve meaningfully.

Upcoming Events to Track

Quarterly results from Reliance Industries, JSW Steel, HDFC Bank, and ICICI Bank are scheduled in the next two days. These reports could set the market’s tone for the next week.

The outcome of US–India trade negotiations is being watched closely. Any agreement or conflict will affect investor confidence.

Domestic economic data and signals from the Reserve Bank of India (RBI), especially regarding liquidity and interest rate moves, are also important.

Final Thoughts

The Indian stock market remains in a cautious mood on July 18, 2025. While global signals are positive, local factors like mixed corporate earnings, trade worries, and sector-specific issues keep the market in a tight range. Strength in IT, select mid-cap stocks, and pharmaceutical companies provides some support. On the other hand, banking weakness and foreign investors selling act as headwinds.

Traders and investors are likely to stay on the sidelines until more clarity emerges from corporate results and trade policy outcomes. Market direction will depend on whether key support levels hold and if strong earnings from heavyweights like Reliance and ICICI can revive momentum. Until then, expect limited upside with stock-specific action continuing to dominate trading behavior.