Sensex tumbles over 600 points: Why is stock market falling today?
Axis Bank led the slide, plunging over 4%—its sharpest fall in six months—after it posted a lower-than-expected June-quarter profit.The bank attributed the miss to a rise in bad loans following a one-time industry-wide benchmarking exercise and a dip in its net interest margin to 3.8%, down from 4.05% in the previous quarter.The lender said it had to realign its asset classification norms after discovering that a peer bank was using a stricter standard. While Axis did not name the bank, the change led to higher provisioning and credit costs.Brokerages flagged further concerns. Macquarie said the results raised "more questions than answers", pointing to Axis's elevated credit costs compared to peers, even after accounting for the one-time shift.The miss at Axis Bank weighed on investor sentiment across the sector, even as IT stocks provided some relief. Wipro gained 3% following its results, but the Nifty IT index remained flat as LTIMindtree slipped 2%.Broader markets also stayed weak. The Nifty Smallcap 100 and Midcap 100 indices were down 0.6% and 0.5%, respectively. So far this week, the Sensex has shed 0.8%, while the Nifty is down 0.5%, setting up both indices for a third straight week of losses.All eyes are now on the June-quarter results of heavyweights HDFC Bank and ICICI Bank, due on Saturday, which could set the tone for next week's market direction.- EndsTrending Reel
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Mint
a day ago
- Mint
Gold price rises 200% in six years. How expensive it may become in next 5 years?
Gold prices have delivered stellar returns to investors in 2025. The precious yellow metal on MCX has ascended over 30 per cent, other risky assets like silver surged nearly 35%, and the Nifty 50 index has risen around 4.65 per cent. The BSE Sensex has given around 3.75 per cent, while some Sensex heavyweights like Reliance share price have generated a little over 14 per cent in 2025. Nifty 50 heavyweight HDFC Bank shares have surged around 12.50 per cent. So, gold and silver have outshone other risky assets by a massive margin in YTD. The precious bullions have dominated the market in the long term, too. In six years, the MCX gold rate has risen from around ₹ 32,000 per 10 gm to around 97,800 per 10 gm, delivering a rise of over 200 per cent. According to commodity market experts, gold prices are expected to dominate the list of risky assets. The bears may deliver at least 40 per cent in the next five years, whereas the bulls may become expensive by over 125 per cent. Speaking on the gold price rally in recent years, Santosh Meena, Head of Research at Swastika Investmart, said, "Gold has long held deep emotional and financial value in Indian households. It has also gained prominence as a strategic asset among global central banks in recent years. This shift has accelerated over the past two years, particularly after the Russia-Ukraine conflict, which led to the freezing of a significant portion of Russia's foreign exchange reserves. As geopolitical tensions rise and tariff disputes continue, central banks increasingly turn to gold as a safe-haven asset, contributing to a steady rise in its price." Santosh Meena of Swastika Inestmart said several key factors drive this renewed interest in gold. One of the most notable is the weakening confidence in the US dollar. Many central banks are diversifying their reserves to reduce dependency on the dollar, and gold is emerging as the preferred alternative. Another major driver is the rising US debt-to-GDP ratio, which raises concerns about the long-term stability of the dollar and further enhances gold's appeal as a store of value. The overall geopolitical instability climate also pushes institutional and retail investors toward gold as a reliable hedge against uncertainty. On why gold prices have risen in the last six years, Sugandha Sachdeva, Founder of SS WealthStreet, said, "Gold has delivered outstanding returns of nearly 200% over the past six years, rallying from around ₹ . 34,200 in June 2019 to approximately ₹ . 97,800 per 10 grams in 2025. This exceptional performance has been driven by global macroeconomic shocks, including the COVID-19 pandemic, ultra-loose monetary policies, geopolitical tensions, and heightened financial market uncertainty." The SS WealthStreet expert said that the outbreak of the pandemic unleashed massive economic disruption and led to unprecedented monetary and fiscal interventions. Central banks across the globe slashed interest rates to near zero. They rolled out large-scale quantitative easing programs, injecting liquidity into the system and fueling inflation and currency debasement concerns. Simultaneously, real interest rates turned negative, reducing the opportunity cost of holding gold. Governments deployed aggressive stimulus measures, further expanding the money supply and reinforcing gold's role as a hedge against systemic risk. Sugandha Sachdeva went on to add that a string of geopolitical and financial flashpoints has further reinforced gold's appeal: 1] Russia-Ukraine war (Feb 2022); 2] US banking turmoil (SVB, Credit Suisse – early 2023); 3] Middle East conflict (Oct 2023); 4] Escalating US tariff war under President Trump (2025); 5] Record Central bank gold purchases; and 6] Persistent de-dollarisation efforts globally. "These tailwinds have propelled gold to fresh record highs of over ₹ 1,00,178 per 10 gm in 2025, and the environment remains supportive for structurally elevated prices over the long term," said Sugandha Sachdeva, adding, "While past returns may not be repeated at the same scale, multiple macroeconomic and structural forces point to further upside in gold over the next five years. The continued central bank purchases, strong ETF inflows, de-dollarisation drive, and rising debt levels in the US all point towards prices being meaningfully higher from current levels." On whether gold will be able to deliver this stellar performance again, "The ongoing strategic accumulation of gold by global central banks is likely to be a key pillar that would provide further strength to gold prices. Gold now comprises almost 20% of total central bank reserves against the US dollar's declining share, down from 73% in 2001 to 58% in 2025. Gold has emerged as a key beneficiary of central banks' diversification efforts. A shift towards a multi-polar currency world is eroding the dollar's dominance. Volatility in currency markets makes gold more attractive as a stable reserve asset. Furthermore, burgeoning public debt levels, particularly in the US, raise long-term fiscal risks and erode confidence in fiat currencies, making gold a crucial hedge against currency debasement." Sugaqndha said that ongoing and potential future conflicts (including economic, political, and military) will continue to elevate safe-haven demand. Beyond institutional buying, new channels of demand are emerging, such as China's insurance sector reportedly allocating 1% of its Assets Under Management (AUM) to gold, signifying growing institutional interest. ETF inflows and investor allocations toward non-yielding assets could remain strong if real yields stay suppressed. Moreover, a structurally weak rupee amplifies domestic gold price performance. Sugandha Sachdeva of SS Wealthstreet advised investors to continue investing in gold: "Gold continues to prove its mettle as a long-term store of value and a portfolio diversifier. Amid ongoing global uncertainties, rising global debt, elevated geopolitical risks, currency volatility, and policy-induced distortions, the yellow metal will likely remain a core hedge against systemic risks. Investors may consider systematic accumulation during price corrections and hold a strategic allocation over the next five years to enhance risk-adjusted returns." Regarding how much gold may become expensive in the next five years, Sugandha Sachdeva said, "Gold remains subject to intermittent corrections due to changing interest rate expectations or temporary strength in the US dollar. However, the major floor level is expected around ₹ 75,000-72000 per 10 gm, providing a strong downside cushion to prices. However, the gold price pattern suggests around ₹ 1,05,000 per 10 gm for the year, while for the next 5 years it could trend towards around ₹ 1,35,000 per gm to anywhere around ₹ 1,40,000 per 10 gm." However, Santosh Meena of Swastika Investmart believes that stellar gold price returns may continue in the next five years. Geopolitical tension and a trade war are expected to keep the demand for gold as a safe haven intact. "In terms of performance, gold has delivered an impressive 18% compound annual growth rate (CAGR) in the Indian market over the past five years. If this trajectory continues, gold prices could reach ₹ 2,25,000 per 10 grams within five years. While short-term volatility is natural, the broader structural case for gold remains intact, supported by sustained central bank buying, currency debasement concerns, and the asset's historical role as a financial haven," Santosh Meena of Swastika Investmart concluded. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Business Standard
a day ago
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Q1 results today: Kotak Mahindra, IDFC First Bank among 38 firms on July 26
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Hans India
a day ago
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Heavy selling drags key indices to monthly lows
Mumbai: Stock markets declined for the second day in a row on Friday, with the Sensex tumbling 721 points due to heavy selling in financial, IT and oil & gas shares amid persistent foreign fund outflows. The 30-share BSE Sensex tanked 721.08 points or 0.88 per cent to settle at over a month's low of 81,463.09. During the day, it plunged 786.48 points or 0.95 per cent to 81,397.69. The 50-share NSE Nifty dropped 225.10 points or 0.90 per cent to a month's low of 24,837. Analysts said a weak trend in Asian and European markets also dented investors' sentiment. Vinod Nair, Head of Research, Geojit Investments Limited, said, 'Subdued corporate results and lacklustre global cues triggered a broad-based sell-off across domestic equities. Elevated valuations in large-cap stocks, coupled with significant net short positions held by FIIs, added to the downward pressure.' Among Sensex firms, Bajaj Finance declined 4.73 per cent post its June quarter earnings announcement. Power Grid, Infosys, Tech Mahindra, Bajaj Finserv, Trent, Tata Motors, NTPC and Adani Ports were also among the laggards.
