Recap of Indian Market (July 28, 2025)
On July 28, 2025, the Nifty 50 closed at 24,680.90, down 156.10 points (-0.63%), while the BSE Sensex dropped 572 points (-0.70%) to about 80,891.
The Sensex fell over 1,836 points (~2.2%) and the Nifty by about 2.1% during the three consecutive sessions of losses, wiping away about ₹12 lakh crore in total market capitalisation.
Principal Causes of the Sell-off
A few events affected the mood of investors:
Large companies’ subpar Q1 earnings, particularly Kotak Mahindra Bank’s, impacted valuations and fell short of forecasts.
Trade negotiations between the US and India are at a standstill, and tariffs on dairy and agricultural products could be imposed before the deadline of August 1.
As global markets remain cautious, foreign institutional investors (FIIs) withdrew about ₹60 billion on Monday, the largest one-day withdrawal since May 30.
The IT industry is concerned about new layoffs and low demand, which is causing the heavyweight tech stocks to decline.
There is still a chance of further declines unless the indexes overcome resistance in the 24,800–25,000 range, where technical weakness is evident.
Sector & Stock Highlights
Smallcaps and midcaps both dropped by roughly 1% and 1.1% to one-month lows.
The two biggest losers among PSU and banking, Bajaj Finance (down about 3.6%) and Kotak Mahindra Bank (down around 7.3%).
The top Nifty gainers were Shriram Finance (+2.6%), Cipla (+2.5%), and Hero MotoCorp (+1.45%), the only substantial outperformers in a down market.
Pharma, FMCG, and healthcare industries saw slight rises, but real estate fell by almost 4% and media, financials, and IT lost more than 2%.
Power Grid Corp. was one of the few tech-sector gainers, rising 0.05% despite high turnover and relative outperformance against peers.
Looking ahead: Trade talks between India and the United States may result in an agreement or further delays, which could significantly impact sentiment.
Corporate profits: The first-quarter earnings of other significant participants (especially private sector banks and IT businesses) may influence market trends.
FII flows: Ongoing outflows may maintain selling pressure, while inflows can stabilize indices.
Technical levels: The market can remain sluggish below 24,800; failure to hold 24,550-24,500 can result in further losses. A breach above 25,000 could spark relief rallies.
Summary
In brief, uncertainty over stalled trade negotiations, low profits, continuing foreign selling, and technology sector headwinds caused a widespread drop in Indian equities on July 28, 2025. Markets approached Tuesday with caution due to a sensitive mood and weaker technical support.
Disclaimer: This blog is intended solely for educational purposes. Any stock references are provided as illustrative examples and should not be construed as investment advice or recommendations.
