Sensex Slumps 721 Points, Nifty Hits One-Month Low as FIIs Sell Heavily; IT and Financial Stocks Drag

Mumbai, July 25: The falling spree of the Indian stock markets continued for the second consecutive session on Friday. The Sensex fell by around 721 points and closed at 81463.09 (0.88% lower than the previous day’s close). The decline is attributed to heavy selling in the financial, IT, and oil and gas sectors. Persistent foreign fund outflows and weak global cues further exacerbated the decline.

Key Highlights:

• Sensex plunges 721.08 points or 0.88% to close at 81,463.09, marking a one-month low
• Intraday low touched 81,397.69, down 786.48 points
• Nifty drops 225.10 points or 0.90% to settle at 24,837, also a one-month low
• FIIs net sold ₹2,133.69 crore worth of equities
• DIIs net bought ₹2,617.14 crore

Sectoral and Stock Performance

A broad-based sell-off was observed, with frontline IT and financial stocks under pressure.

• Bajaj Finance declined 4.73% following its Q1 earnings announcement
• Other notable laggards included Power Grid, Infosys, Tech Mahindra, Bajaj Finserv, Trent, Tata Motors, NTPC, and Adani Ports
• On the gaining side, Sun Pharma and Bharti Airtel bucked the trend and ended in green

Market Sentiment and Global Cues

Investor sentiment remained subdued due to lacklustre corporate earnings and elevated valuations in large-cap stocks. Analysts also pointed to weak trends in Asian and European markets.

Asian indices, including Japan’s Nikkei 225, Shanghai Composite, and Hong Kong’s Hang Seng closed lower, while South Korea’s Kospi ended marginally higher. European markets were also trading in the red. On Thursday, Wall Street closed on a mixed note.

Macro Update: India-UK Free Trade Agreement

The India-UK Free Trade Agreement, signed on Thursday, promises significant trade liberalisation. Starting next year, 99% of Indian exports will enter the UK duty-free, while tariffs on key British exports such as cars and whisky will be reduced. The deal aims to double bilateral trade to USD 112 billion by 2030.

Crude Oil and Currency Movement

Brent crude, the global oil benchmark, rose 0.32% to USD 69.40 per barrel, adding to global inflation concerns.

Previous Session Recap

On Thursday, the Sensex had fallen 542.47 points to 82,184.17, and the Nifty declined 157.80 points to 25,062.10, driven by similar pressures from FII selling and weak earnings.

Market Outlook

With FIIs maintaining net short positions and global uncertainty looming, near-term market volatility is likely to persist. Traders will now look forward to major upcoming corporate results and global economic cues for directional clarity.

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