Nifty 50 drops below 24,900 mark while broader markets suffer steeper cuts of up to 2.5% amid earnings concerns
Indian stock markets declined for the second consecutive session on July 25, with the Nifty 50 falling 0.88% to 24,842 points and Sensex dropping 0.85% to 81,477. Major losers included Bajaj Finance, Chennai Petroleum, and Intellect Design, while broader markets witnessed even sharper selling pressure with smallcaps plunging 2.5%.
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The market downturn was primarily driven by disappointing quarterly earnings and guidance cuts from several major companies. Chennai Petroleum emerged as the biggest laggard, plummeting 9.1% to ₹692 after reporting a consolidated net loss of ₹401 million for the June quarter, a stark reversal from the ₹3.57 billion profit recorded in the same period last year.
Intellect Design followed closely, with shares tumbling 9.25% to ₹1,036—its steepest intraday drop since April 7. The software developer's consolidated net profit declined 31.3% year-on-year for the June quarter, while revenue from operations fell 3.3%.
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APL Apollo Tubes witnessed an 8.5% decline after trimming its FY26 volume growth guidance to 10-15% from the earlier 15-20%. According to Ambit Institutional Equities, the company attributed the lowered outlook to "demand slowdown, early monsoon, and weak exports due to geopolitical tensions" during its post-earnings call.
Bajaj Finance shed 5% as investors expressed concerns over deteriorating asset quality and rising credit costs, despite the company reporting strong loan growth during the June quarter. KFIN Technologies crashed 5.52% following sequential revenue and profit declines in Q1FY26.
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The broader market indices suffered even more severe losses, with the Nifty Smallcap 100 index plunging 2.5% and the Nifty Midcap 100 falling 1.63%. Both indices closed the week with losses of up to 3.47%, marking the fourth consecutive weekly decline—the longest losing streak since September 2024.
Despite the overall negative sentiment, select export-oriented stocks from leather, textiles, and pharmaceutical sectors showed resilience following Thursday's India-Britain free trade agreement signing. The deal, finalized during Prime Minister Narendra Modi's London visit, aims to reduce tariffs on various goods and improve market access.
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Among the gainers, IEX topped the list with a 10% bounce to ₹145 after experiencing its largest intraday crash in the previous session. The recovery followed the company's healthy June quarter performance. Phoenix Mills gained 5% after announcing a JV buyout deal alongside positive Q1 earnings.
Pharmaceutical stocks bucked the trend, with Cipla rising 3.4% after beating profit estimates driven by strong domestic demand for generic respiratory drugs. Torrent Pharma gained over 3% following its entry into India's adult nutrition market with Shelcal Total.
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The current market weakness extends a challenging period for Indian equities, with both benchmark indices recording their fourth straight week of losses. Foreign institutional investors have been net sellers amid uncertainty over potential India-US trade negotiations and concerns about corporate earnings growth. The market has been searching for fresh positive triggers to reverse the downtrend that began in late June.
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Market analysts suggest the selling pressure may continue until there's clarity on US trade policies and improvement in corporate earnings. The lack of fresh positive triggers, combined with global economic uncertainties, keeps investors cautious. While the India-UK FTA provides some optimism for export-oriented sectors, broader market recovery depends on Q2 earnings performance and resolution of international trade concerns. Technical analysts note that Nifty 50 needs to sustain above 25,000 to signal a potential reversal.
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