Nifty-Opens-at-₹24,782.75,-Sensex-Starts-at-₹81,240

Sensex and Nifty Dip Amid Weak Earnings, Global Tensions, and Trade Uncertainties

On July 28, 2025, the Indian stock market begins the day with a slight decline. The Sensex opens near the 81,240 mark, while the Nifty 50 slips below 24,800. Both indices show losses for the fourth week in a row. Reasons include weak quarterly results, ongoing foreign investor outflows, and a lack of progress in trade talks between India and the United States.

The market’s current weakness reflects investor concerns about earnings performance and global uncertainty. The lack of momentum leads to cautious sentiment across key sectors.

Friday’s Closing Summary

On the previous trading day, Friday:

Sensex falls by 721 points, or around 0.88%, and closes at 81,463.

Nifty 50 drops by 225 points, or about 0.90%, to finish at 24,837.

This marks the lowest closing level in over a month. Technically, the Nifty falls below its 50-day simple moving average. Market analysts warn of further downward movement if the Nifty cannot regain levels above 25,200.

Sector-Wise Performance

Banking and Financial Services

Kotak Mahindra Bank is one of the major losers today. Its shares drop by 4% to 7% after weak Q1 results. The bank reports a decline in profit margins and an increase in loan provisions.

The drop in Kotak’s stock affects other banking shares. The Nifty Private Bank Index falls nearly 1%, while the broader financial index drops around 0.5%.

Other small and mid-cap banking stocks also show slight declines, falling around 0.2% to 0.3%.

Information Technology (IT)

IT companies face selling pressure. The Nifty IT Index falls between 0.5% and 1.4%.

TCS (Tata Consultancy Services) shares slide by around 1.6%. The company recently announced a reduction of 2% in its workforce for the financial year 2026, which worries investors.

Energy and Power

Shares of Indian Energy Exchange (IEX) fall sharply—up to 8.9%.

Investors react to possible changes in market regulations. Concerns arise that these changes could reduce IEX’s market share. Some brokerage firms reduce their ratings for the company.

IPO Market

Swastika Castal, a small and medium enterprise, lists on the BSE SME platform today.

The company raised ₹14.07 crore through its initial public offering.

However, the stock sees no major price jump on listing. This shows that investors are currently cautious about new listings.

Reasons Behind Market Weakness

Several key factors contribute to the current downtrend in the market:

Weak Corporate Earnings

Many companies, especially in the banking and consumer finance sectors, report lower-than-expected profits in the first quarter of FY26.

Kotak Mahindra Bank and SBI Cards are two examples of firms that post disappointing results.

This creates worry among investors about the overall health of the Indian corporate sector.

Trade Tensions with the US

India and the United States are negotiating over trade issues, especially regarding agricultural and dairy products.

No breakthrough has been achieved, and the deadline for a resolution is nearing.

This uncertainty makes investors nervous, especially in sectors that depend on exports.

Foreign Capital Outflows

Foreign institutional investors continue to sell Indian stocks.

This outflow is driven by global uncertainty, rising US interest rates, and cautious sentiment among international investors.

The reduced foreign interest adds pressure on local indices.

Technical Analysis

From a technical point of view:

The Nifty 50 has broken its 50-day exponential moving average, a key support level.

It also falls below the 61.8% Fibonacci retracement level at 24,920.

These movements suggest that the short-term trend is negative.

The Relative Strength Index (RSI) stays around 40, showing weak momentum.

The MACD (Moving Average Convergence Divergence) indicator also shows a bearish trend.

Traders expect more downside if Nifty cannot stay above 24,800. On the upside, resistance is likely around the 25,000 to 25,050 zone.

IPO and Investment Activity

India remains one of the top IPO markets globally. So far in 2025, Indian companies have raised $6.7 billion through initial public offerings.

This marks a 25% increase compared to last year.

Major digital companies like PhonePe, Groww, Meesho, and Lenskart are preparing for future IPOs.

Some larger companies, however, are delaying their public offerings due to market volatility.

In a major development, Titan, a well-known Indian brand, acquires a 67% stake in Dubai-based Damas Jewellery for $285 million. The move is seen as an effort to expand internationally and reduce dependence on the Indian market during uncertain times.

Global Impact and Local Outlook

Globally, markets remain cautious due to political and economic tensions.

The uncertain outcome of the US–India trade deal continues to affect domestic sentiment.

The delay in trade resolution also increases the risk for sectors like agriculture, food processing, and export manufacturing.

On the domestic front, the government is expected to announce policy updates to boost consumption and attract long-term capital. Investors watch for any positive signals before returning to the markets.

Short-Term Outlook

In the coming days, traders and investors will focus on:

Remaining Q1 earnings, especially from large-cap companies in finance and infrastructure.

Updates on US–India trade negotiations before the expected August 1 deadline.

Policy announcements that could support capital markets or boost industry growth.

Technical patterns in the Nifty and Sensex for signs of reversal or continued decline.

Support for the Nifty is expected around 24,600 to 24,720. If that level breaks, deeper corrections may follow. Resistance is seen near 25,050. A move above this could lead to recovery in the short term.

Final Thoughts

As of July 28, 2025, the Indian stock market is under pressure due to weak earnings, trade tensions, and cautious global sentiment. Banking, IT, and energy sectors face the most pressure, while IPO enthusiasm slows down. The Nifty and Sensex trade near crucial support levels. Investors remain on edge, waiting for clarity on trade deals and improved corporate results. Without positive news, the market may continue to remain volatile in the short term.