Weekly Market Wrap: Nifty Slips Below 25,000 Amid Earnings Drag; Third Straight Week of Losses

Indian equities moved between optimism and caution this week as macroeconomic data and Q1 earnings dictated sentiment. Gains from easing inflation and supportive geopolitical signals were erased by weaker-than-expected results, pushing indices into their third consecutive weekly decline.

Inflation Drop Supports Midweek Rally
The Nifty 50 began on a weak note but rebounded midweek after June CPI fell to 2.10 per cent from 2.82 per cent in May, the lowest in over six years. Hopes of an interest rate cut by the RBI strengthened, while comments from the US President about being “very close to a deal with India” further improved sentiment.

Earnings Season Turns Sentiment Negative
Focus shifted to Q1FY26 results later in the week. HCLTech missed profit estimates, Tech Mahindra posted disappointing results, and Axis Bank’s asset quality concerns weighed on financials. Wipro reported double-digit profit growth, lifting its stock, but overall banking and IT sectors faced selling pressure.

Index and Sector Performance

• Nifty 50: -0.72 per cent

• Nifty Bank: -0.83 per cent

Top Gainers: Hindustan Unilever (+3.4 per cent), Nestle India (+3.0 per cent), IndusInd Bank (+2.0 per cent)
Top Losers: HCL Tech (-6.9 per cent), TCS (-5.7 per cent), Axis Bank (-5.6 per cent)

Media (+3.92 per cent) and Realty (+3.84 per cent) led sectoral gains, while IT (-1.46 per cent) and Financial Services (-1.11 per cent) underperformed. Broader indices outperformed, with Midcap 100 up 0.79 per cent and Smallcap 100 up 1.05 per cent.

Funds Flow: FIIs were net sellers except on July 15, when they bought equities worth Rs 120.47 crore, while DIIs remained consistent buyers, adding Rs 7,387.03 crore till July 17.

Outlook: Optimism from easing inflation and possible RBI rate cuts was overshadowed by weak earnings, and stock-specific volatility may remain high.

Disclaimer: Informational purposes only; not investment advice.