On Monday, July 28, 2025, the domestic stock market witnessed another sharp decline. After a positive start in the morning, the market suddenly slipped in the afternoon. The Sensex fell nearly 450 points from its intraday high to 81114.45, while the Nifty slipped below the key level of 24750, reaching 24738.85.
Investor sentiment soured throughout the day's trading session. Significant declines were recorded in major stocks such as Kotak Mahindra Bank, Bharat Electronics, Airtel, Titan, and Apollo Hospitals.
Kotak Mahindra Bank's Results Disappoint
The primary reason for the market's decline was the weak quarterly results of Kotak Mahindra Bank. The bank's stock saw a decline of up to 7 percent. The bank's consolidated net profit for the April-June quarter stood at ₹4472 crore, compared to ₹7448 crore in the same quarter last year.
Although the previous year's results included a one-time income of ₹3000 crore from the sale of a stake in a general insurance company, this time the profit was significantly below expectations. Weakness was also observed in the bank's retail commercial vehicle loan category, further increasing investor concerns.
Aggressive Selling by Foreign Investors
The second major reason for the market's decline was selling by foreign investors. On Friday, FIIs sold shares worth ₹1980 crore. Over the past week, this figure reached ₹13552 crore. Whenever foreign investors sell shares in such large quantities, pressure on the market is inevitable.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated that such large-scale selling has deepened the weakness in the market and has also affected the sentiment of small investors.
No Support from Asian Markets
Asian markets also fared poorly on Monday. Japan's Nikkei, South Korea's Kospi, and China's Shanghai Composite Index—all closed in the red. When global markets decline, Indian investor sentiment is also affected, and they cautiously withdraw from trading.
Surge in Crude Oil Prices
Another factor that caused concern among investors was the surge in Brent crude prices. It rose to $68.64 per barrel. In countries like India, which imports most of its oil, rising crude oil prices can increase inflation and costs. This can affect companies' margins, which directly impacts the stock market.
Selling in IT Stocks and Negative News
The IT sector failed to support the market this time as well. Selling was observed in major IT stocks such as TCS, Wipro, HCL Tech, and Tech Mahindra. News of TCS laying off 2 percent of its global workforce further dampened market sentiment.
Investors are shying away from the IT sector due to weak outlooks and declining deals in IT companies. This also acted as a negative signal for the market.
What Technical Indicators Are Saying
According to Anand James, Research Head at Geojit, technically, the Nifty may find support at levels of 24450 and 24000. If the market closes above 24922, it could see a short covering rally up to 25324. However, there is b resistance near 25000.
Currently, the market appears to be in a weak position, and volatility is likely to persist for the next few days. Factors such as selling by foreign investors, global uncertainty, and sectoral weakness are reducing confidence in the market.
These Stocks Faced the Most Pressure
- Kotak Mahindra Bank: Decline of up to 7 percent due to weak results
- Bharat Electronics: Pressure from investor selling
- Bharti Airtel: Concerns about the company's operational metrics
- Titan and Apollo Hospitals: Profit-taking in high-value stocks
Market experts believe that until foreign investors resume buying and a major positive signal emerges from the quarterly results, there is little hope for stability in the market.
Monday's decline also showed how sensitive the market has become and that even a few signals can cause major turmoil. Investors and analysts are now looking towards the economic data due in early August and US policies, which could determine the market's next direction.
