The Indian stock market began the day on a weak note, extending its losing streak for the fourth consecutive session. Both the Sensex and Nifty opened lower on Tuesday, July 29, 2025, influenced by negative global cues and a lackluster earnings season.
Market Performance: At 9:16 am IST, the BSE Sensex was trading at 80,737.59, a drop of 153.43 points or 0.19%. The NSE Nifty50 also declined by 47.55 points, or 0.19%, to reach 24,633.35, after hitting an intraday low of 24,598.60. The indices swung between gains and losses as the day progressed, reflecting cautious market sentiment. The previous day, Monday, saw a significant downturn, with the Sensex falling by 572.07 points (0.70%) to close at 80,891.02, and the Nifty 50 decreasing by 156.10 points (0.63%) to close at 24,680.90.
Top Drags: Several stocks contributed to the initial market decline. Infosys and ICICI Bank were among the top laggards. Bharat Electronics (BEL) also experienced a significant drop, falling 2.17% to ₹380.90. Other notable losers included Eternal, UltraTech Cement and TCS. HDFC Bank was also under pressure. Shares of Kotak Mahindra Bank had plunged more than 7% on the previous day after its Q1 FY26 earnings fell short of expectations.
Factors Influencing the Market: Several factors contributed to the subdued market sentiment. Weak quarterly earnings from major companies like Kotak Mahindra Bank and Macrotech Developers (Lodha) triggered sell-offs, particularly in private banking and realty stocks. Uncertainty surrounding the India-US trade deal further weighed on investor confidence. Continuous selling by Foreign Portfolio Investors (FPIs) has also added to the pressure, with a net outflow of ₹20,262 crore recorded in July as of July 25. Despite the FII selling, domestic institutions have been providing some support through buying activities.
Expert Opinions and Technical Outlook: According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the weak sentiment is likely to persist as long as the Sensex trades below 81,100. He suggested that the index may correct further to 80,500-80,350. A break above 81,100 could trigger a pullback rally towards 81,400, potentially extending to 81,700. Technical charts indicate a bearish trend, with the Nifty 50 forming a bearish candlestick pattern for the third consecutive session. The index has closed below key short and medium-term moving averages, suggesting sustained selling pressure.
Sectoral Performance: On Monday, most sectors ended in the red, except for FMCG. Nifty Realty and Private Bank indices experienced significant declines of 4.1% and 1.7%, respectively. On the other hand, the Pharma index showed some positive movement, gaining 0.4% due to better-than-expected Q1 results from Cipla and Laurus Labs.
Key Levels to Watch: Experts suggest that as Nifty is trading below 24,800, the weak sentiment is likely to continue. On the downside, the market may correct to 24,550–24,500. On the upside, a break above 24,800 could lead to a pullback rally extending up to 24,900. The highest Nifty call open interest (OI) was observed at the 24,800 strike, indicating a potential resistance zone, while the highest put open interest stood at 24,500.
