Sensex and Nifty Extend Losing Streak to Third Day Amid Kotak Selloff, Trade Deal Uncertainty

Mumbai, July 28, 2025 – Indian stock markets ended lower for the third straight session on Monday, as investor sentiment took a hit due to a steep decline in Kotak Mahindra Bank shares and concerns over the unresolved India-US trade deal.

Benchmarks Drop Nearly 1%

The BSE Sensex plunged 572.07 points, or 0.70%, to close at 80,891.02, after hitting an intraday low of 80,776.44. The NSE Nifty slipped 156.10 points, or 0.63%. After which the NSE Nifty settled at 24,680.90. This marks the second consecutive session where both indices closed below critical psychological levels, with the Nifty now firmly under 24,700.

Kotak Mahindra Bank Drags Index Down

Kotak Mahindra Bank was the biggest drag, sinking 7.31% after the bank reported a consolidated net profit of ₹4,472 crore for Q1, compared to ₹7,448 crore a year ago. The previous year’s profit, however, had included a one-time gain of over ₹3,000 crore from a stake sale in its general insurance arm. On a sequential basis, net profit declined from ₹4,933 crore last quarter. The bank also flagged stress in its retail commercial vehicle loan portfolio due to challenging macroeconomic conditions.

Other major laggards included Bajaj Finance, Bharti Airtel, Titan, Tata Consultancy Services, HCL Tech, and State Bank of India.

Defensive Stocks Provide Some Cushion

On the upside, Hindustan Unilever, Asian Paints, ICICI Bank, Power Grid, HDFC Bank, and ITC managed to post gains, offering some support to the broader market.

FII Selling Continues

Foreign Institutional Investors (FIIs) continued their selling spree, offloading equities worth ₹1,979.96 crore on Friday, according to exchange data, adding to the pressure on domestic markets.

Mixed Global Cues

Asian markets presented a mixed picture. Japan’s Nikkei 225 closed in the red, while South Korea’s Kospi, China’s Shanghai Composite, and Hong Kong’s Hang Seng ended in positive territory. European markets were trading higher, and Wall Street closed with gains on Friday.

Brent Crude Climbs

Brent crude, the global oil benchmark, rose 0.91% to USD 69.05 per barrel, indicating a slight uptick in energy prices.

Previous Session Recap

On Friday, the Sensex had fallen 721.08 points (0.88%) to close at 81,463.09, while the Nifty dropped 225.10 points (0.90%) to finish at 24,837, both marking their lowest levels in over a month.

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations