Stock Exchange Dip: Sensex Crashes to 82,450; Nifty 50 Plunges to 25,140
On July 16, 2025, the Indian stock market opened slightly negative, reflecting a cautious global market sentiment. Bearish Dow futures and mixed sentiment in European markets weighed on investor confidence.
During the trading session, the Sensex fell by 100 to 156 points, while the Nifty 50 slips by around 34 to 56 points. However, the mid-cap and small-cap segments traded in positive territory, indicating a potential resilience in the market.
One of the notable events was the Bank Nifty's bullish breakout above 57,091, suggesting continued momentum and potentially impacting the broader market positively.
The start of quarterly earnings was subdued, contributing to investor caution and affecting market performance. Despite this, traders and investors were observed adjusting their portfolios, shifting to defensive sectors while keeping an eye on critical support levels.
Interest in domestically driven sectors such as realty, metals, and pharmaceuticals was noted, indicating a shift in investor preferences towards sectors perceived as resilient.
Policy updates from RBI and SEBI regarding bond auctions, liquidity, or investor rules could influence the market, as could changes in the value of the Indian Rupee, which could impact exporters and importers.
The focus for the rest of the week will be on global policy news, company results, and trade developments, particularly India-US trade talks that may affect sectors like auto, IT, and metals. Global investors will also watch closely for interest rate guidance from the US Federal Reserve.
In other news, Biocon gained more than 3% after a favorable inspection report from the US Food and Drug Administration (FDA), while HDFC Bank showed strength with gains of up to 1.3%. However, Kotak Mahindra Bank decreased by nearly 0.8% following the resignation of its president and chief credit officer.
Markets in Asia showed mixed trends, with Japan's Nikkei and Hong Kong's Hang Seng gaining slightly, China's Shanghai index trading lower, and global investor sentiment remaining weak.
Over the last week, both the Nifty and Sensex faced pressure, with the Nifty dropping about 2% in four days and the Sensex falling over 1,450 points. The coming days will be key to understanding whether the market is preparing for a strong rebound or heading into deeper correction territory.
Analysts say that the broader outlook remains strong, despite the near-term pressure, due to India's economic growth, strong domestic participation, and healthy corporate earnings. They emphasise that it's essential for investors to stay informed and adapt their strategies accordingly.
Investors were seen adjusting their portfolios, shifting to defensive sectors such as realty, metals, and pharmaceuticals, while keeping an eye on critical support levels, indicating a shift in investing preferences towards perceived resilient sectors. The focus for the rest of the week lies on global policy news, company results, and trade developments, particularly India-US trade talks that may impact the stock-market performance of sectors like auto, IT, and metals. The interest rate guidance from the US Federal Reserve will also be closely watched by global investors. In the finance sector, one notable event was Bank Nifty's bullish breakout, suggesting continued momentum and potentially impacting the broader stock-market positively.