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Get real-time updates, expert insights, and daily breakdowns of Sensex, Nifty, and key stock movers
The Indian stock market trades lower on July 25, 2025, as both major indices, Sensex and Nifty 50, extend losses for a second straight day. Market sentiment weakens due to disappointing earnings, global uncertainty, rising crude oil prices, and concerns over foreign investor outflows.
Sensex and Nifty Extend Losses
The BSE Sensex falls more than 550 points, trading near 81,650 levels, while the NSE Nifty 50 dips below the 24,900 mark, losing around 170 points by mid-morning.
In just two sessions, the Sensex dropped about 1,100 points, and Nifty lost 1.5%, erasing nearly ₹7 lakh crore in market capitalization. Investors lock in profits after a strong rally in recent weeks. Global cues, trade uncertainties, and fears around inflation lead to cautious behavior.
Broad-Based Selling Across Sectors
Most sectors see selling pressure. Key sectors like:
Financial services
IT
Automobiles
Energy
Consumer Durables
Real Estate
All trade is in the red.
Bajaj Finance and Bajaj Finserv witness steep declines. Bajaj Finance shares drop by nearly 6%, even after reporting strong quarterly profits. Investors react negatively to rising bad loans, especially in the MSME segment, which raises concerns over loan quality.
Heavyweight stocks like Reliance Industries and Infosys also fall, dragging the broader indices. The Midcap and Smallcap indices trade lower by more than 1%, signaling that the weakness is widespread.
Few Stocks Defy the Trend
Despite the market slump, a handful of stocks post gains.
Indian Energy Exchange (IEX) jumps nearly 9% after posting a 25% year-on-year profit growth in Q1. Regulatory approval for market coupling boosts investor confidence.
Trident rises around 4.7%, driven by optimism following the India–UK Free Trade Agreement (FTA). The deal benefits exporters like Trident.
SBI Life Insurance gains about 2.5%, supported by strong renewal premium collections and healthy profits in Q1.
These stocks offer some relief in an otherwise weak market.
Global and Domestic Factors at Play
Several global and domestic factors influence investor mood:
The recently signed India–UK trade deal eliminates tariffs on items like textiles, whiskey, and auto components. While positive for trade, the stock market impact remains limited in the short term.
US–India trade negotiations remain unresolved. With a deadline of August 1 set by the US, the lack of clarity raises investor concern.
A surprise visit by US President Donald Trump to the US Federal Reserve sends shockwaves across global markets. The unusual move adds to uncertainty.
Crude oil prices move higher due to Russian supply cuts, which raises fears of inflation and cost pressures for Indian companies.
The Indian rupee weakens to a one-month low of 86.57 per dollar, before stabilizing slightly. A weaker rupee makes imports costlier and could hurt inflation control efforts.
India VIX, the volatility index, rises more than 5%, indicating increased nervousness among investors.
IPO Market Remains Active
Despite the market correction, the Indian IPO market stays strong. In the first half of 2025, Indian companies raised about $6.7 billion through IPOs, making India the second-largest IPO market globally.
Companies like PhonePe, Groww, Meesho, and Lenskart file draft papers, signaling strong interest. However, larger firms like Flipkart and Reliance Jio are yet to launch their IPOs.
In other news, Titan, the Tata Group’s jewellery division, completes the acquisition of 67% of Damas Jewellery in Dubai. This deal strengthens Titan’s international reach, especially in the Middle East.
Technical Signals Turn Negative
From a technical point of view, Nifty 50 slips below its 50-day Exponential Moving Average (EMA), a key support level. This indicates weakness and raises the risk of further downside.
Out of 16 sectoral indices, 13 trade in negative territory. Most sectors, including banking, auto, energy, and IT, show losses in the range of 0.6% to 1%.
Gift Nifty futures also trade lower by about 100 points compared to the previous close. This suggests continued weakness in the near term.
Analysts note that unless Nifty breaks above the 25,100–25,250 zone, market sentiment is likely to stay fragile. A cautious and stock-specific approach is preferred in such conditions.
Outlook for the Coming Days
Several factors could impact the Indian stock market in the short term:
Progress in US–India trade talks will be key. Any signs of a deal may boost sentiment, while new tariffs could hurt global trade flows and investor confidence.
Crude oil prices and inflation are major concerns. Higher oil prices impact corporate earnings and increase costs for consumers.
Foreign investor flows remain unstable. Continued selling by FPIs (Foreign Portfolio Investors) can drag markets lower, while buying can offer support.
Corporate earnings are a mixed bag. While some companies like Bajaj Finance report strong profits, asset quality issues raise doubts. Upcoming results from key firms will influence overall sentiment.
The IPO pipeline remains promising. Successful launches could inject fresh enthusiasm, but only if overall market stability returns.
Export-focused sectors, such as textiles, may benefit from the UK trade deal in the medium term. However, the actual impact may take a few quarters to reflect in financials.
Summary Table
Area | Status |
Market Indices | Sensex down 550+ points, Nifty below 24,900 |
Major Losers | Bajaj Finance, Bajaj Finserv, Infosys, Reliance Industries |
Top Gainers | IEX (+9%), Trident (+4.7%), SBI Life (+2.5%) |
Sector Performance | Broad-based selling; banking, IT, auto, and energy decline |
Currency & Commodities | Rupee at 1-month low; crude oil prices increase |
Volatility | India VIX rises 5%, market nervousness grows |
IPO Market | Strong activity; several tech firms plan listings |
Technical View | Nifty below 50-day EMA; market shows signs of weakness |
Global Factors | Trump-Fed meeting, US–India trade talks, UK trade deal |
Final Thoughts
The Indian stock market on July 25, 2025, shows signs of caution and correction. Investors reduce exposure in the face of uncertain global trade talks, weak corporate loan data, rising oil prices, and currency depreciation.
While the broader trend stays negative, selective strength is seen in stocks with strong fundamentals and growth prospects. IPO momentum, export-focused themes, and policy clarity could provide support in the medium term.
Until more certainty emerges on trade relations and inflation control, markets are expected to remain volatile. A disciplined and patient approach becomes essential in navigating the current phase of the market.