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The stock market experienced a significant downturn on Monday, marking the third consecutive day of losses. The benchmark indices, Sensex and Nifty, both tumbled nearly 1%, reflecting a broader market unease. This decline was primarily attributed to heavy selling pressure in Kotak Mahindra Bank and lingering uncertainty surrounding the India-U.S. trade deal. The combination of these factors created a negative sentiment among investors, leading to a widespread sell-off across various sectors. The 30-share BSE Sensex witnessed a sharp drop of 572.07 points, equivalent to a 0.70% decrease, ultimately settling at 80,891.02. Throughout the trading day, the Sensex experienced even greater volatility, plummeting as low as 686.65 points, or 0.84%, to reach 80,776.44. This intraday low highlighted the extent of the selling pressure and the nervousness permeating the market. Similarly, the 50-share NSE Nifty also experienced a considerable decline, falling by 156.10 points, or 0.63%, to close at 24,680.90. The synchronized decline of both Sensex and Nifty underscored the widespread nature of the negative market sentiment. Among the Sensex constituents, Kotak Mahindra Bank emerged as the biggest loser, tumbling by a significant 7.31%. This sharp decline was triggered by the bank's announcement of a consolidated net profit of ₹4,472 crore for the June quarter. While this figure might appear substantial at first glance, it represented a considerable decrease compared to the ₹7,448 crore profit reported in the corresponding period of the previous year. However, the previous year's profit included gains of over ₹3,000 crore from the stake sale in its general insurance arm, which significantly inflated the overall figure. Furthermore, the bank's net profit for the March quarter stood at ₹4,933 crore, further highlighting the recent decline. In addition to the disappointing financial results, Kotak Mahindra Bank also flagged concerns about stress on its retail commercial vehicle portfolio, citing adverse macroeconomic conditions as the primary cause. This warning further exacerbated investor concerns and contributed to the heavy selling pressure on the bank's shares. Beyond Kotak Mahindra Bank, other prominent companies also experienced losses, contributing to the overall market decline. Bajaj Finance, Bharti Airtel, Titan, Tata Consultancy Services, HCL Tech, and State Bank of India were among the notable laggards, further weighing down the Sensex and Nifty. However, not all companies experienced losses. Hindustan Unilever, Asian Paints, ICICI Bank, Power Grid, HDFC Bank, and ITC managed to buck the trend and ended the day in positive territory, providing some respite to the overall market decline. The actions of Foreign Institutional Investors (FIIs) also played a significant role in shaping market sentiment. According to exchange data, FIIs offloaded equities worth ₹1,979.96 crore on Friday (July 25, 2025), indicating a cautious approach towards the Indian market. This outflow of foreign capital further contributed to the downward pressure on stock prices. Analyzing the performance of other Asian markets reveals a mixed picture. Japan's Nikkei 225 index settled lower, reflecting similar concerns about global economic conditions. However, South Korea's Kospi, Shanghai's SSE Composite index, and Hong Kong's Hang Seng all ended in positive territory, suggesting a more optimistic outlook in those regions. In contrast to the Asian markets, European markets were trading in the green, indicating a positive sentiment among investors in Europe. The U.S. markets also ended higher on Friday (July 25, 2025), providing some support to global market sentiment. The price of global oil benchmark Brent crude climbed 0.91% to $69.05 a barrel, suggesting a potential increase in inflationary pressures. On Friday (July 25, 2025), the Sensex tanked 721.08 points or 0.88%, to settle at over a month's low of 81,463.09. The Nifty dropped 225.10 points or 0.90%, to a month's low of 24,837. The overall market outlook remains uncertain, with investors closely monitoring developments related to the India-U.S. trade deal and the performance of key companies like Kotak Mahindra Bank. The market's future direction will likely depend on these factors, as well as broader global economic trends.
Source: Stock markets tumble as Sensex, Nifty decline nearly 1%