The Indian stock market witnessed a downturn on Monday, July 14, 2025, with the Nifty 50 index falling below the 25,100 mark. Both the Nifty 50 and the Sensex, the benchmark indices, opened in the red, reflecting a negative sentiment influenced by global trade concerns and weaker-than-expected earnings from major IT companies.

Market Performance and Key Indicators

The NSE Nifty 50 was trading at 25,095.20, down 55 points or 0.22%. The BSE Sensex was at 82,291.51, down 209 points or 0.25%. The Nifty 50 had earlier closed the week at 25,149.85, a decrease of 205 points or 0.81%, breaching a crucial support zone. This decline marks the fourth consecutive session of losses.

Factors Influencing the Market

Several factors contributed to this market performance:

• Global Trade Tensions: Ongoing concerns about global trade tariffs, particularly those initiated by the U.S., have dampened investor sentiment. The announcement of potential tariffs on imports from the European Union and Mexico has further exacerbated these concerns.
• Weak IT Sector Performance: Disappointing quarterly earnings from Tata Consultancy Services (TCS), a leading IT company, have negatively impacted the IT sector, contributing to the overall market decline. Weakness in other IT stocks such as Infosys and Tech Mahindra has further weighed on the indices.
• Foreign Institutional Investor (FII) Activity: FIIs have been net sellers in the cash market, adding to the downward pressure. Data from the NSE on July 11 indicated that FPIs offloaded Indian equities worth ₹5,104 crore.
• Technical Factors: The Nifty 50 has broken below its previous swing low on the daily chart, signaling a short-term corrective phase. The index has also slipped below the 20-day Simple Moving Average (SMA), indicating further weakness.

Expert Opinions and Analysis

Market experts suggest that the weakness in the IT sector is a significant factor in the current market trend. Banking and financial stocks, however, are outperforming even in this weak market, presenting potential buying opportunities.

According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the sentiment will remain weak as long as the market stays below 25,350. He added that a break below this level could lead to a further slip towards 25,050 or even 24,900-24800.

Anand James, Chief Market Strategist at Geojit Investments Limited, noted that only 24% of Nifty 50 constituents closed above their respective 10-day SMAs, the lowest number since early June.

Key Levels to Watch

Choice Broking suggests that the Nifty is approaching a key Fibonacci support zone near 25,000, where a reversal signal may emerge. A close above 25,330 could reignite bullish momentum, targeting 25,670–26,000. On the downside, a decisive break of 25,000 could lead to further declines.

Technical analysis indicates immediate resistance levels for Nifty at 25,210.23 (R1), 25,317.13 (R2), and 25,388.98 (R3), while immediate support levels are at 25,129 (S1), 25,078.84 (S2), and 25,030.60 (S3).

Sectoral Performance

The IT index experienced the steepest sectoral decline, dropping over 1%. Financial services stocks also faced selling pressure. On the other hand, FMCG, power, insurance, and railway stocks are showing relative strength.

Overall Outlook

The Indian stock market is currently experiencing a corrective phase, influenced by global trade tensions, weak IT sector performance, and FII selling. While key support levels around 25,000 may offer a potential reversal point, maintaining caution and focusing on risk management is advisable. Analysts suggest a sell-on-rise strategy until the Nifty 50 reaches the 24,500 levels. Monitoring global cues, Q1 earnings, and FII activity will be crucial in determining market direction this week.