Why Is Stock Market Falling Today? Know Key Factors Behind Sensex, Nifty Decline On July 28
Sensex and Nifty fell sharply on Monday, weighed down by Kotak Bank, sustained FII outflows, and weak Asian market cues.
Why Is Stock Market Falling Today? The benchmark equity indices Sensex and Nifty declined sharply on Monday amid heavy selling in Kotak Mahindra Bank, continued foreign fund outflows, and weak cues from Asian markets.
The Sensex fell by 578.21 points or 0.71 percent to 80,884.88, while the broader Nifty dropped below the crucial 24,700 mark to 24,668.35, down 168.65 points or 0.68 percent, as of around 1:35 p.m.
Among the top laggards were Kotak Mahindra Bank, Bharat Electronics, Bharti Airtel, Titan, and Apollo Hospitals Enterprise, with intraday losses of up to 7 percent.
Key Reasons Behind Monday's Market Fall:
1. Kotak Mahindra Bank drags the market:
Shares of Kotak Mahindra Bank plunged nearly 7 percent after the bank reported a consolidated net profit of Rs 4,472 crore for the June quarter, compared to Rs 7,448 crore in the same quarter last year. The year-ago figure included a one-time gain of over Rs 3,000 crore from a stake sale in its general insurance arm. The bank flagged stress in its retail commercial vehicle loan portfolio, citing unfavourable macroeconomic conditions. Kotak was the top loser in the Nifty Bank index, which itself was down by up to 0.4 percent, with eight of its constituents in the red.
Foreign Institutional Investors (FIIs) sold equities worth Rs 1,979.96 crore on Friday. According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, FIIs offloaded Rs 13,552 crore from the cash market in the previous week alone, adding significant pressure on the domestic markets.
3. Weak Asian market cues:
Asian equity markets were largely negative on Monday. Indices like South Korea's Kospi, Japan's Nikkei 225, and China's Shanghai Composite were trading lower, which weighed on investor sentiment in Indian markets.
4. Brent crude oil price rises:
The global oil benchmark Brent crude edged higher by 0.29 percent to USD 68.64 per barrel. Rising crude prices tend to increase input costs and stoke inflationary pressure in oil-importing countries like India, contributing to negative market sentiment.
5. Selling pressure in IT stocks:
IT stocks also came under pressure. The Nifty IT index witnessed losses led by Wipro, TCS, HCL Tech, and Tech Mahindra. Vijayakumar noted that continued weakness in the IT pack is dragging broader markets. Investor sentiment was further dampened by TCS's announcement of a 2 percent reduction in its global workforce.
6. Spike in market volatility:
The India VIX, a measure of market volatility, rose by nearly 7 percent to 12.07, signaling growing nervousness among traders. A rising VIX often corresponds with heightened fear and can lead to increased selling pressure in the market.
Technical Outlook
According to Anand James, Chief Market Strategist at Geojit Financial Services, Nifty may find immediate support at 24,450 and further at 24,000. He indicated that the index could face near-term downside risk. However, if Nifty crosses above 24,922, it may trigger short-covering, potentially pushing the index to test levels around 25,324. That said, resistance around the 25,000 mark may still pose a challenge for the bulls.
view comments
Location :
New Delhi, India, India
First Published:
July 28, 2025, 14:17 IST
News business » markets Why Is Stock Market Falling Today? Know Key Factors Behind Sensex, Nifty Decline On July 28
Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
10 minutes ago
- Business Standard
Tata Sons-backed Tata Capital files updated draft papers with Sebi for IPO
Tata Capital, the non-banking finance company (NBFC) of the Tata Group, on Monday filed an updated draft red herring prospectus (DRHP) with the markets regulator, Securities and Exchange Board of India (Sebi), for its mandatory listing on the bourses by September 2025. The company has already received the market regulator's approval for its IPO. According to the draft papers, the initial public offering (IPO) will consist of a total of 475.82 million shares, including a fresh issue of 210 million shares and an offer for sale (OFS) of 265.82 million shares. Tata Sons, which owns 88.6% of Tata Capital, will offload 230 million shares in the OFS, and the International Finance Corporation (IFC) will offload 35.82 million shares. IFC holds a 1.8% stake in the NBFC. Tata Capital initially filed confidential IPO papers in April and received approval from India's market regulator last month to proceed. As part of the process, companies are required to submit an updated draft red herring prospectus and allow time for public feedback before filing the final version. Tata Capital has been mandated by the Reserve Bank of India (RBI) to list on the bourses by September 2025, as it is classified as an upper-layer NBFC. The Tata Sons-backed NBFC firm earned a net profit of Rs 3,664.66 crore in FY25, compared to a net profit of Rs 3,150.21 crore in FY24 and Rs 3,029.2 crore in FY23. The company's revenue from core operations stood at Rs 28,312.74 crore in FY25, while its net worth stands at Rs 32,587.82 crore as of March 31, 2025. Kotak Mahindra Capital, Axis Capital, BNP Paribas, Citigroup Global Markets India, HDFC Bank, HSBC Securities and Capital Markets (India), ICICI Securities, IIFL Capital, JP Morgan, and SBI Capital Markets are the book-running lead managers of the issue.
Deccan Herald
10 minutes ago
- Deccan Herald
Despite HC order, Karnataka transport staff call bus strike from August 5
Bengaluru: Despite an interim order by Karnataka High Court, transport corporation employees across the state have decided to go on a strike from 6 am on Tuesday (August 5), likely disrupting bus services across the state. The Joint Action Committee of the Trade Unions of Karnataka State Road Transport Corporation pressed on with the strike after its marathon meeting with Chief Minister Siddaramaiah failed to resolve two contentious issues -- payment of 38 months' arrears amounting to Rs 1,785 crore and a 25 per cent pay hike from January 1, 2024. .We are prepared for protests on August 5: Karnataka HM G offered Rs 718 crore as arrears for 14 months (from January 1, 2022, to February 28, 2023), citing a July 2022 report by retired IAS officer M R Sreenivasa Murthy. KSRTC Managing Director Akram Pasha maintained that employees cannot go on the strike on Tuesday in view of the court order. As a plan B, the RTCs have roped in private players to operate bus services "anywhere they want" after the Transport Department issued an order under Section 66(1) of the Motor Vehicles Act, 1988. Private buses can charge fares along the lines of KSRTC and BMTC, he said. The Federation of Karnataka State Private Transport Associations has agreed to operate 4,000 buses, according to its president S Nataraj Sharma. The four RTCs are also roping in school and industrial buses. Pasha said RTC buses would also operate, with the strike having "only a 10-20 per cent impact". "We've also invoked the Essential Services Maintenance Act (ESMA). Employees cannot go on strike and we've cancelled their leave. Violations will result in disciplinary action," he told DH. The KSRTC and the BMTC urged employees to honour the court order and refrain from participating in the strike. Vijaya Bhaskar D A, general secretary of the KSRTC Staff And Workers' Federation acknowledged receiving the court order but said a decision on deferring the strike must be taken collectively by all six unions that are part of the joint action committee. "We received the court order late and could not decide. The strike is very much on,' he told DH. At the meeting, the CM called the demand for 38 months' arrears "unreasonable", noting that the government had implemented the 15 per cent pay hike only from March 1, 2023, based on the Sreenivasa Murthy report. .Karnataka Health Minister asks people not to be 'fooled' by attractive, colourful dishes."When we came to power (in 2023), the four RTCs had combined liabilities of Rs 4,000 crore. None of them is profitable. The government will not be unfair," he noted. He promised to discuss the pay hike after the legislative session and urged the unions to withdraw the strike. However, the committee representatives rejected the offer. Committee convenor H V Anantha Subbarao slammed the government, saying it cannot go back on arrears payments. He added that the 25 per cent hike would remain in effect until 2027. He said employees were "not afraid" of ESMA and were ready to go to jail. Bhaskar criticised the CM for asking them to withdraw the strike and come to a dialogue. "Talks can continue during the strike, too," he remarked. Pasha said the Sreenivasa Murthy report recommended against paying arrears for 24 months (2020 and 2021) due to Covid-19. He called the 25 per cent hike demand "too high". "The last raise was 15 per cent, which is above average. If the same is given, it will result in a financial burden of over Rs 1,700 crore. The four RTCs already have Rs 4,000 crore in liabilities towards PF payments, diesel expenditure, etc," he said.
Economic Times
10 minutes ago
- Economic Times
Knowledge Realty Trust REIT raises Rs 2,820 crore from anchor and institutional investors
Knowledge Realty Trust REIT's IPO will open on August 5, 2025. The company has already secured Rs 1,620 crore from anchor investors. A strategic allocation of Rs 1,200 crore is also completed. LIC and Tata Group are among the key participants. The IPO includes a fresh issuance of units. Proceeds will be used for debt repayment and corporate purposes. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Knowledge Realty Trust REIT has raised Rs 1,620 crore from anchor investors and a strategic allocation of Rs 1,200 crore ahead of its initial public offering, which opens for public subscription on Tuesday, August 5, of the institutions that participated in the anchor round include LIC , Tata AIG, Nippon MF, Axis MF, Tata MF, FT MF, Amundi, Wells Capital, PIMCO, SBI Pension, Jhunjhunwala Trust, and 360 One, among that participated in the strategic allocation include LIC, SBI Life, UTI MF, HDFC Life, Kotak Life, and 360 One, among others, the exchange filing mentioned by the company.'This is the first-time participation from LIC in any REIT IPO. There has also been broad participation from the Tata Group, including its mutual fund, insurance, and AIF arms,' it to this, the company had raised a pre-IPO round of Rs 1,400 crore. With this, 70% of the IPO, or Rs 4,220 crore, is already the balance public offering of Rs 1,980 crore (institutional component of Rs 1,080 crore and retail and HNI component of Rs 900 crore), the bid/issue opens Tuesday, August 5, 2025, and closes Thursday, August 7, minimum bid size is Rs 15,000, which is also the minimum investment amount. The price band for the offer has been determined at Rs 95–100 per equity share.'Strong investor demand is reflected in the widest book, with allocation to more than 50 investors. About 45% of the allocation has been made to insurance and pension funds, which are long-term holders,' the filing upcoming REIT also witnessed interest from HNIs in the pre-IPO round of Rs 1,400 crore, including R K Damani, Karan Bhagat Trust, and 360 One Office, among proceeds from the issue, to the extent of Rs 4,640 crore, are proposed to be used for partial or full repayment or prepayment of certain financial indebtedness of the Asset SPVs and the Investment Entities, and the rest for general corporate sponsors to the issue are Sattva Developers Private Limited and BREP Asia SG L&T Holding (NQ) Pte. Ltd. Axis Trustee Services Limited is the trustee, and Knowledge Realty Office Management Services Private Limited (formerly known as Trinity Office Management Services Private Limited) is the manager to the IPO comprises a fresh issuance of units worth up to Rs 4,800 crore by the Knowledge Realty Trust. This Issue is being made through the Book Building Process and in compliance with the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014 ('REIT Regulations') and the REIT Master Circular dated July 11, 2025, wherein not more than 75% of the Issue (excluding the Strategic Investor portion) shall be available for allocation on a proportionate basis to Institutional Investors and not less than 25% of the Issue (excluding the Strategic Investor portion) shall be available for allocation to Non-Institutional Investors, in accordance with the REIT Regulations.
