Markets extended their losing streak for the third consecutive session on Monday, with the Sensex settling 572.07 points or 0.70 per cent lower at 80,891.02, and the Nifty 50 falling 156.10 points or 0.63 per cent to close at 24,680.90. The benchmark index slipped below the crucial 24,700 mark amid intensified selling pressure led by banking stocks.

Kotak Mahindra Bank emerged as the biggest drag on the Nifty, plummeting 7.34 per cent to ₹1,968.70 after reporting disappointing first-quarter earnings and highlighting stress in its retail commercial vehicle loan segment. The private lender’s consolidated net profit dropped significantly for the June quarter, with management citing unfavourable macroeconomic conditions.

“Today Indian stock market closed negatively, with the Nifty 50 index falling 0.63 per cent to 24,680 and the Sensex declining by around 570 points, settling near 80,890. The negative close was primarily driven by heavy selling pressure in key banking stocks, especially Kotak Mahindra Bank, which fell nearly 7 per cent,” said Vaibhav Vidwani, Research Analyst at Bonanza Group.

Banking stocks bore the brunt of the selloff, with Bajaj Finance declining 3.58 per cent to ₹881.00 and IndusInd Bank falling 2.93 per cent to ₹799.60. The Bank Nifty slumped 444 points or 0.79 per cent to 56,084.90, slipping below its 50-day exponential moving average for the first time since April 7, 2025.

On the positive side, Shriram Finance led the gainers’ list, surging 2.62 per cent to ₹632.00, followed by Cipla, which gained 2.45 per cent to ₹1,570.00. Hero MotoCorp advanced 1.45 per cent to ₹4,292.00, while Asian Paints rose 1.00 per cent to ₹2,359.50 and Hindustan Unilever gained 0.98 per cent to ₹2,439.00.

Bharti Airtel declined 2.48 per cent to ₹1,889.90, and Titan fell 2.25 per cent to ₹3,385.00, rounding out the top five losers on the Nifty 50.

Realty, media, capital goods lead sectoral decline

Sectoral performance remained broadly negative, with Nifty Realty being the worst performer, plunging 4.29 per cent. “Among sectors, the Realty index lost the most, shedding nearly 4.29 percent, whereas some buying interest was seen in selective pharma and FMCG stocks,” noted Shrikant Chouhan, Head Equity Research at Kotak Securities.

The media sector also faced significant pressure, correcting 2.7 per cent, while capital goods, metals, telecom, PSU banks, and private banking counters witnessed broad-based selling pressure. In contrast, the pharma index provided some defensive cushion and emerged as the sole sectoral outperformer.

Market breadth remained heavily skewed toward declines, with 2,881 stocks declining against 1,256 advances on the BSE. Among 4,299 stocks traded, 162 remained unchanged. The broader markets faced even steeper losses, with the Nifty Midcap 100 falling 490.10 points or 0.84 per cent to 57,519.35, and the Nifty Smallcap 100 declining 1.26 per cent.

Technical indicators turn negative; RSI below 40

“The benchmark Nifty index continues to exhibit weakness as it trades decisively below both its 20-day and 50-day EMAs. A particularly important technical development is visible in the RSI. The daily RSI has slipped below the 40 level for the first time since April 2025,” observed Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.

Adding to investor concerns, the India VIX volatility index climbed for the third consecutive session, rising nearly 7 per cent and jumping 12.5 per cent from its recent low of 10.72, signalling growing nervousness among market participants.

Global cues weak

Global factors also weighed on sentiment, with weak Asian market cues as major indices, such as Japan’s Nikkei and South Korea’s Kospi, declined. Rising Brent crude oil prices added to inflationary concerns for India, an oil-importing nation.

The IT sector faced additional pressure following reports of workforce reductions, with TCS announcing a 2 per cent staff cut. “IT sector stocks faced selling pressure as well, led by companies like TCS and Infosys, with TCS announcing a workforce reduction of 2 per cent, adding to the bearish sentiment,” Vidwani added.

Rupee weakens to 1-month low; commodities steady

Currency and commodity markets also reflected the cautious sentiment. The Indian rupee depreciated to around ₹86.65 per US dollar, marking its lowest level in a month and erasing previous gains from earlier in the year. “Rupee traded weak by 0.10 per cent at 86.65 as weakness in capital markets weighed on sentiment,” said Jateen Trivedi, VP Research Analyst at LKP Securities.

In commodities, gold traded near $3,335 per ounce on the Comex and ₹98,050 on the MCX, with strength in the dollar index limiting gains.

“Markets are currently grappling with headwinds on both domestic and global fronts. On the domestic side, earnings disappointments and persistent foreign fund outflows are dampening sentiment,” said Ajit Mishra, SVP Research at Religare Broking.

Outlook cautious; Fed, US jobs data, trade deal in focus

Looking ahead, market participants are bracing for a volatile week, with key global triggers including the August 1 trade deal deadline with the U.S., the Federal Reserve’s policy decision, and major U.S. economic data releases, such as ADP Non-Farm Employment Change, Non-Farm Payrolls, and GDP numbers. Technical analysts expect the Nifty to face immediate support around 24,550-24,500 levels, while resistance is seen at 24,800-24,950.

Published on July 28, 2025