The Indian stock market witnessed a significant downturn on Thursday, with the Sensex falling by 542.47 points to close at 82,184.17, and the Nifty 50 settling 157.80 points lower at 25,062.10. This decline can be attributed to a combination of factors, including weak global cues, disappointing corporate earnings, and concerns surrounding the India-US trade deal.
Asian markets traded lower, mirroring a mixed trend on Wall Street, which added to the negative sentiment. Japan's Nikkei 225 and South Korea's Kospi both experienced declines. The US market ended mixed, with the S&P 500 and Nasdaq closing at record highs, while the Dow Jones Industrial Average declined.
The corporate earnings season has presented a mixed bag, contributing to market uncertainty. Out of the Nifty 50 companies that have reported results, a considerable portion has either missed or only met analyst expectations, creating unease among investors. Major IT companies such as Infosys, Tech Mahindra, HCLTech, and TCS faced selling pressure due to lackluster earnings and negative signals from the U.S., further dragging down the indices. Bajaj Finance also contributed to the losses following its quarterly earnings report.
Geopolitical factors also played a role. Lingering concerns surrounding global trade developments and uncertainty over the India-US trade agreement have made market participants nervous. The anticipated finalization of the trade deal during Prime Minister Modi's visit to the UK seems to be delayed, adding to the apprehension. A rising dollar and consistent outflows from foreign institutional investors have further strained Indian equities.
Technical analysis suggests that the Nifty 50 faced resistance around the 25,250–25,260 zone. According to Rupak De, Senior Technical Analyst at LKP Securities, the index is expected to remain range-bound in the near term. Support remains intact at 24,900, and a break below this level could trigger a correction in the market.
On Friday, July 25, 2025, the Indian stock market is expected to continue its losses, opening lower due to mixed cues from global markets. The Gift Nifty was trading around 24,993, indicating a negative start for the Indian benchmark index. Shrikant Chouhan, Head of Equity Research at Kotak Securities, suggests that a fresh selloff is possible if the Sensex breaches 82,000, potentially retesting 81,700 - 81,500. Conversely, a move above 83,200 could trigger a technical bounce back to 82,800.
Derivatives data indicates that the highest Call Open Interest (OI) for Nifty 50 is at the 25,100 strike, followed by 25,200, suggesting potential resistance at these levels. The highest Put OI is placed at 25,000, followed by 24,900, highlighting strong support zones. This suggests that the 25,000 – 25,200 range will be crucial for Nifty's near-term directional move.
In addition to the broader market trends, specific stocks also experienced significant movement. Shares of Indian Energy Exchange (IEX) plummeted due to concerns over the Central Electricity Regulatory Commission's (CERC) plans to introduce 'market coupling'. Conversely, Tatva Chintan Pharma Chem shares surged following healthy earnings for the quarter ended June 2025.
