Indian indices fall sharply on Friday ending a volatile week

New Indian Express

25-07-2025

CHENNAI: Indian stock markets ended sharply lower on Friday, July 25, capping a weak week for investors amid broad-based selling across sectors. Heavy losses in Bajaj Finance and Bajaj Finserv, along with declines in other index heavyweights like Power Grid, Tech Mahindra, and Infosys, dragged the benchmarks down.
At close, the BSE Sensex was down 721 points, or 0.88 per cent, at 81,463.09. The NSE Nifty 50 declined 225 points, or 0.90 per cent, to settle at 24,837. Sun Pharma was the sole gainer in the Sensex basket.
The decline was primarily driven by weakness in financial stocks. Bajaj Finance and Bajaj Finserv were among the biggest losers, falling between 4.5 per cent and 6 per cent, following investor concerns over their Q1 earnings commentary, particularly on asset quality. Infosys also dropped sharply by over 2 per cent, weighing on the IT sector.
Foreign institutional investors remained net sellers through the week, putting additional pressure on markets. Global cues were also unsupportive, with concerns over upcoming US tariffs and global central bank decisions adding to investor caution. The recently signed UK–India Free Trade Agreement failed to lift sentiment, as the market awaited more clarity on its near-term benefits.
Sectorally, all major indices ended in the red. Auto, metals, PSU banks, and financial services sectors fell between 1.3 per cent and 2 per cent. Mid-cap and small-cap indices were hit harder, with weekly losses of around 1.6 per cent and 2.1 per cent respectively.
For the week, both Sensex and Nifty logged their fourth consecutive weekly decline, the longest losing streak in 2025. The Sensex was down around 0.5 per cent for the week, while the Nifty fell by 0.4 per cent. The consistent drop reflects profit-booking and a cautious stance by investors amid a lack of immediate positive triggers.
Rupee
In the currency market, the Indian rupee weakened to a one-month low. It fell to as low as 86.5775 per dollar before settling at around 86.51. The decline was attributed to equity market weakness and unwinding of short-term rupee-long positions. Analysts anticipate more pressure in the coming week depending on US economic data, Federal Reserve and Bank of Japan policy updates, and trade-related developments.
Investor sentiment remains subdued, with concerns over earnings quality, foreign fund outflows, and macroeconomic uncertainty continuing to weigh on the market. The focus in the coming week will be on global policy signals and domestic earnings, which are expected to guide the near-term direction of the markets.