Nifty and Sensex Extend Losses; Midcaps, Small-caps Hit 1-Month Lows

Market Update at 4:15 PM: On Monday, July 28, Indian benchmark indices ended lower for the third straight session, weighed down by weakness in Kotak Mahindra Bank and Bharti Airtel. At the closing bell, the Nifty 50 declined by 156.10 points or 0.63 per cent to end at 24,680.90, while the Sensex fell by 572.06 points or 0.70 per cent, settling at 80,891.03.

IT stocks slipped by 0.72 per cent, with Tata Consultancy Services (TCS) falling 1.8 per cent after announcing a 2 per cent reduction in its workforce. Banking heavyweights HDFC Bank and ICICI Bank, which posted positive Q1FY26 Quarterly Results, gained 0.2 per cent and 7 per cent respectively, offering partial support to the benchmarks. Market sentiment remained cautious due to uncertainty surrounding the U.S.-India trade agreement ahead of the August 1 deadline.

Among the 11 major sectors, only 2 closed in the green. The Nifty Realty index slipped by 4.07 per cent, falling below the 200-day exponential moving average (DEMA), with Godrej Properties and Lodha Developers among the Top Losers. On the other hand, the Nifty Pharma index advanced by 0.43 per cent, supported by gains in Laurus Labs and Cipla. Broader indices followed the downward trend, with the Nifty Midcap 100 declining 0.84 per cent and the Smallcap 100 falling 1.26 per cent, both closing at one-month lows.

Kotak Mahindra Bank’s stock dropped over 7 per cent following its muted Q1 performance, dragging the Nifty by 65.05 points. CDSL declined 5.69 per cent after reporting a fall in Q1 profit, while Lodha Developers’ shares slipped 5.96 per cent post-results. Bharti Airtel and TCS also weighed heavily on the index. In contrast, ICICI Bank, Hindustan Unilever, and Cipla contributed the most to Nifty’s gains.

Market breadth remained negative as 2,211 stocks declined versus 811 advances, while 67 stocks remained unchanged on the NSE. A total of 57 stocks touched their 52-week highs, while 62 hit their 52-week lows. Additionally, 70 stocks were locked in upper circuits, and 120 stocks were in lower circuits.

Uncertainty over global trade and mixed quarterly results continue to drive volatility, with broader indices and key sectors facing pressure.

Market Update at 12:30 PM: Indian stock markets pared early losses on Monday, July 28, 2025, as selling pressure persisted in Large-Cap IT stocks, including TCS, Infosys, and HCL Tech. Investors stayed cautious ahead of the upcoming tariff deadline set to take effect later this week, which is expected to influence global trade sentiment.

At 12:00 PM, the Sensex was trading at 81,335.04, down by 128 points or 0.16 per cent, while the Nifty50 declined 28 points or 0.11 per cent to 24,808.55. Among the Sensex constituents, Kotak Bank led the losers with a fall of over 6 per cent, followed by declines in TCS, Infosys, Bharti Airtel, BEL, HCL Tech, Titan, and Bajaj Finance.

On the gaining side, Bajaj Finserv, Tata Motors, HUL, ICICI Bank, HDFC Bank, Ultratech Cement, Maruti Suzuki, and Tata Steel supported the market by trading in the green. In the broader markets, Mid-Cap and Small-Cap stocks outperformed the benchmarks, with the Nifty MidCap index rising 0.55 per cent and the Nifty SmallCap index advancing 0.37 per cent.

Sector-wise, the Nifty IT index dropped 1.4 per cent due to pressure on major IT counters, while the Nifty Private Bank and Realty indices fell over 1 per cent each. Market participants are closely watching quarterly results and upcoming IPO activity for further cues.

Market Update at 10:30 AM: India’s equity indices opened lower on Monday as weak earnings and unresolved trade negotiations with the U.S. weighed on market sentiment. At 9:15 a.m. IST, the Nifty 50 fell 0.22 per cent to 24,782.45, while the BSE Sensex slipped 0.2 per cent to 81,299.97.

Talks between India and the U.S. on tariff reductions for agricultural and dairy products remain stalled, lowering expectations of an agreement before U.S. President Donald Trump’s 1 August deadline. Nine of the 13 major sectoral indices opened in the red, reflecting broad selling pressure.

Small-cap and mid-cap indices declined 0.3 per cent and 0.2 per cent, respectively, while financials and private banking stocks led the losses with drops of 0.5 per cent and 1 per cent. Kotak Mahindra Bank fell 4.7 per cent after reporting a quarterly profit decline, dragging the broader financial sector.

The Nifty 50 and Sensex have now recorded four straight weeks of declines, pressured by weak earnings, foreign investor outflows, and continuing uncertainty surrounding the U.S.-India trade deal.

Pre-Market Update at 7:45 AM: Indian equity markets are set for a muted start on Monday, July 28, as indicated by the GIFT Nifty, which was trading near 24,821 at 7:16 AM, down 21 points from its previous close. The benchmark Nifty is expected to follow mixed Asian market cues amid the ongoing Q1 FY26 earnings season and updates on global trade developments.

Last Friday, Indian equities extended losses for the second consecutive session. The Sensex declined 721.08 points, or 0.88 per cent, to close at 81,463.09, while the Nifty 50 slipped 225.10 points, or 0.90 per cent, settling at 24,837. Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 1,979.96 crore, whereas Domestic Institutional Investors (DIIs) were net buyers with purchases of Rs 2,138.59 crore.

Today’s focus will be on Q1 FY26 results from Bharat Electronics, Adani Green Energy, Torrent Pharmaceuticals, GAIL India, Mazagon Dock Shipbuilders, Waaree Energies, NTPC Green Energy, Adani Total Gas, IndusInd Bank, and Nippon Life India Asset Management. Kotak Mahindra Bank and IDFC First Bank reported their quarterly results post-market on Friday and may influence market sentiment.

On Wall Street, indices ended higher on Friday, buoyed by optimism over a US-European Union trade agreement. The Dow Jones Industrial Average rose 0.47 per cent to 44,901.92, the S&P 500 gained 0.40 per cent to 6,388.64, and the Nasdaq inched up 0.24 per cent to 21,108.32. For the week, the S&P 500 advanced 1.5 per cent, Nasdaq added 1 per cent, and Dow climbed 1.3 per cent.

The US and EU signed a framework trade agreement introducing a 15 per cent tariff on most EU imports, effective August 1. This strengthened the euro, causing the dollar index to slip 0.1 per cent to 97.534. Gold prices fell to a near two-week low, with spot gold at USD 3,332.39 per ounce and US gold futures at USD 3,332.50. Crude oil prices rose, supported by optimism over the trade deal and expectations of a pause in US-China tariffs. Brent crude traded at USD 68.67 per barrel, and WTI crude stood at USD 65.37 per barrel.

Investors will closely monitor updates on the US-India trade agreement, the upcoming US Federal Reserve meeting, auto sales data, IPO activity, and movements in crude oil prices. Q1 earnings from large-cap and mid-cap companies will remain in focus, with attention on any dividend announcements, bonus or rights issues that could drive stock-specific moves.

For today, RBL Bank remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.