Nifty and Sensex Likely to See Gap-Down Opening on July 25

Pre-Market Update at 7:45 AM: Indian equity markets are expected to open lower on Friday, July 25, with GIFT Nifty trading near 24,993, down 93 points at 7:27 AM. The sentiment follows weak global cues and reactions to Q1 FY26 earnings. Asian markets were mostly in the red, while US indices ended mixed overnight, with the Nasdaq and S&P 500 closing at record highs.

On Thursday, July 24, the Nifty 50 closed at 25,062.1, down 0.63 per cent, and the BSE Sensex dropped 0.66 per cent to 82,184.17. The market was dragged lower by post-earnings declines in IT and consumer stocks and a pullback in financial services after a three-day rally.

Investors are likely to focus on the Quarterly Results of Bajaj Finance, which released its earnings post-market on Thursday. Other major Q1 FY26 results due today include Bajaj Finserv, Bank of Baroda, Cipla, Shriram Finance, SBI Cards & Payment Services, Schaeffler India, Steel Authority of India, Petronet LNG, Laurus Labs, Poonawalla Fincorp, and Tata Chemicals.

Institutional flows remained mixed as Foreign Institutional Investors (FIIs) sold equities worth Rs 2,133.69 crore, while Domestic Institutional Investors (DIIs) bought shares worth Rs 2,617.14 crore.

In macroeconomic developments, India concluded a Free Trade Agreement (FTA) with the United Kingdom, aimed at boosting annual bilateral trade by about USD 34 billion. The agreement provides tariff concessions on 99 per cent of Indian exports and makes British goods such as whisky, automobiles, medical equipment, and cosmetics more accessible in India.

The European Central Bank (ECB) maintained interest rates at 2 per cent after eight consecutive cuts since June 2024 to monitor evolving economic conditions and trade relationships.

Wall Street closed mixed on Thursday, with the Dow Jones Industrial Average falling 0.70 per cent to 44,693.91, while the S&P 500 gained 0.07 per cent to 6,363.35 and the Nasdaq added 0.18 per cent to 21,057.96, supported by optimism in artificial intelligence-related Large-Cap stocks following Alphabet’s Q2 earnings.

US jobless claims unexpectedly dropped, with initial state claims for the week ending July 19 falling by 4,000 to a seasonally adjusted 217,000.

Commodities saw modest gains. Gold prices rose 0.1 per cent to USD 3,371.86 per ounce as the US dollar weakened, while Brent crude futures edged up 0.30 per cent to USD 69.39 per barrel, supported by reports of potential Russian export restrictions.

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

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