Today, July 25th, the stock market concluded trading with a significant decline. Selling pressure persisted from the beginning of the session and intensified towards the end of the day. Notably, financial companies and the auto sector experienced substantial weakness, causing the market to close sharply lower.
The BSE Sensex closed down 721 points at 81,463.09. Meanwhile, the Nifty fell by 225 points to close at 24,837. Both major indices experienced a decline of approximately 0.90%.
Selling Dominated from the Start of Trading
The market opened on a weak note today. At the opening bell, the Sensex was down by about 300 points, and the Nifty also slipped below 24,950. Heavy pressure was observed on banking and auto stocks in the initial hours. As the day progressed, investor concerns grew, and the market declined further after the mid-session.
Why Did the Market Fall? Key Reasons Explained
- Decline in Financial Stocks: Major financial stocks like ICICI Bank, HDFC Bank, Kotak Mahindra Bank, Bajaj Finance, and Axis Bank saw significant declines today. Brokerage houses' reports raised concerns about margin pressure in the banking sector, leading investors to book profits in these stocks.
- Pressure on Auto Companies: Auto sector majors such as Tata Motors, Maruti Suzuki, Hero MotoCorp, Bajaj Auto, etc., witnessed declines. Weak expectations regarding July sales data, along with government ambiguity regarding the EV policy, contributed to this downturn.
- Weak Signals from Global Markets: Asian and European markets were also weak today. Investors are cautious ahead of the Federal Reserve's next meeting, resulting in sluggishness in international markets. This directly impacted the Indian stock market.
- Dollar Strength and FII Selling: The rupee weakened against the dollar, affecting foreign investor sentiment. Furthermore, continuous selling by FIIs is being observed, which is not providing support to the market.
Top Sensex Losers
Out of the 30 Sensex stocks, 21 closed in the red today. The major losers included:
- Bajaj Finance: Down 3.9%
- Tata Motors: Down 3.5%
- ICICI Bank: Down 2.2%
- Maruti Suzuki: Down 2.0%
- HDFC Bank: Down 1.8%
- Kotak Bank: Down 1.5%
Top Nifty Gainers
Although the market was in decline, some stocks showed strength:
- Adani Enterprises: Up 2.4%
- Power Grid: Up 1.7%
- NTPC: Up 1.2%
- Titan: Up 1.0%
- Hindustan Unilever: Up 0.8%
Impact Seen on Midcap and Smallcap Stocks As Well
Midcap and smallcap stocks also showed weakness today. The BSE Midcap Index fell by about 0.65%, while the Smallcap Index recorded a decline of 0.45%. Caution was also observed from small investors.
Status of Sectoral Indices
- Nifty Bank: Down 1.1%
- Nifty Financial Services: Down 1.2%
- Nifty Auto: Down 0.9%
- Nifty Metal: Down 0.6%
- Nifty FMCG: Slight gain
- Nifty Energy: Closed with strength
FII and DII Activity
Selling was observed from Foreign Investors (FII) in today's trading session. It is estimated that FIIs made net sales of approximately ₹1,500 crore today. On the other hand, Domestic Investors (DII) made purchases of ₹900 crore, which provided partial support to the market.
Impact of Rupee and Crude Oil
The rupee weakened by 12 paise against the US dollar today. This impacted import companies, especially the margins of auto and FMCG companies. Meanwhile, crude oil prices in the international market remained close to $84 per barrel, which also caused some unease in the market.
Decline in the Middle of the Week Increased Concerns
This decline in the middle of the week has made investors somewhat cautious. After this significant fall on Wednesday, it remains to be seen whether the market can recover on Thursday.
