The Indian stock market began the week on a muted note, with both the Sensex and Nifty 50 exhibiting a flat start, mirroring mixed cues from global markets. The Gift Nifty traded around 25,019, indicating a slight discount compared to the Nifty futures' previous close.
Market Performance:
On Monday, July 21, 2025, the Sensex slipped 180 points, or 0.22 percent, to 81,576. The Nifty 50 was at 24,905, down 64 points, or 0.25 percent. On Friday, the domestic equity market closed lower, with the Nifty 50 dropping below the 25,000 mark. The Sensex had tanked 501.51 points, or 0.61%, to close at 81,757.73, while the Nifty 50 settled 143.05 points, or 0.57%, lower at 24,968.40.
Broader market indices also reflected this trend, with the Nifty Midcap 100 and Smallcap 100 down by 0.34 percent and 0.26 percent, respectively.
Top Performers and Laggards:
HDFC Bank, ICICI Bank, Tata Steel, and UltraTech Cement emerged as the top gainers on the Sensex. Conversely, Reliance Industries (RIL), Axis Bank, M&M, Titan, and Infosys were among the top laggards.
Axis Bank's Performance and Analyst Views:
Axis Bank's stock experienced a notable dip, with shares falling. This decline followed the private lender's report of a 4% year-on-year (YoY) decrease in standalone net profit for the first quarter of FY26, which settled at ₹5,806 crore. The bank's net interest income (NII) remained nearly unchanged at ₹13,560 crore, which failed to impress investors and triggered a sell-off.
Concerns have been raised by market experts regarding Axis Bank's asset quality and earnings outlook. The gross non-performing asset (NPA) ratio increased to 1.57% as of June 30, 2025, from 1.28% as of March 31, 2025. The net NPA ratio of the bank also increased to 0.45% in Q1FY26, from 0.33% sequentially.
Brokerages have adopted a cautious stance, downgrading the stock and cutting earnings estimates and share price targets. Nuvama Institutional Equities downgraded Axis Bank shares to 'Hold' due to volatility in asset quality and growth, reducing the share price target to ₹1,180. Antique maintained a 'Buy' rating but flagged concerns about a sharp rise in slippages and credit costs. Motilal Oswal has maintained a Neutral rating on Axis Bank with a target price of Rs 1,250.
Technical Analysis and Market Outlook:
Kotak Securities' VP-Technical Research, Amol Athawale, noted that the short-term market texture is weak, suggesting a potential sell-off if the Nifty dismisses the 24,900 level. Swastika Investmart Ltd.'s Senior Technical Analyst, Pravesh Gour, pointed out that the Bank Nifty index slipped below its 20-day SMA and upward trendline, indicating a loss of short-term momentum.
The zone of 24,940 - 24,900 will act as immediate support for the Nifty 50 index. If the index slips below the 24,900 level, then the next crucial support is placed at the 24,700 level. On the upside, the zone of 25,130 - 25,160 will act as an immediate hurdle for the index,”.
