Mumbai, July 17, 2025 — Indian equity markets closed lower on Thursday, with the benchmark Sensex falling 375 points to settle at 82,416, and the Nifty 50 ending the session at 25,111, down 108 points. The decline was led by sharp selloffs in information technology (IT) and banking stocks, while realty and metal indices showed relative resilience.
This market correction follows a strong rally in previous weeks, driven by robust Q1 earnings, optimism over monsoon predictions, and hopes of sustained global recovery. However, global cues, valuation concerns, and sectoral rotation weighed heavily on investor sentiment during today’s session.
Key Market Highlights
- Sensex fell 375.41 points or 0.45% to 82,416.37
- Nifty 50 declined 108.30 points or 0.43% to 25,111.25
- Nifty Bank lost 0.6% amid weakness in ICICI Bank, Axis Bank
- Nifty IT dropped over 1.5% as TCS, Infosys saw heavy profit-booking
- Nifty Realty surged 1.2% led by DLF, Godrej Properties
- Midcap and smallcap indices ended largely flat
Market Opening and Intraday Movement
The Indian markets opened on a subdued note following weak global cues from the U.S. and Asian markets. Traders remained cautious ahead of major U.S. earnings and commentary from the Federal Reserve.
After a brief attempt to bounce back in the early afternoon, the indices resumed their downward trend in the last hour of trade. Heavyweight stocks in the IT and banking sectors dragged the broader indices lower.
The volatility index, India VIX, rose by over 3% to 13.92, reflecting rising uncertainty in the market.
Sectoral Performance
IT Sector: Biggest Loser
The Nifty IT index was the worst performer of the day, falling by 1.56%. Profit booking emerged in large-cap IT stocks after a strong rally seen earlier in the month. Concerns over global tech spending, rising wage costs, and subdued guidance from U.S.-listed peers weighed on sentiment.
Top IT Losers:
- TCS: -2.1%
- Infosys: -1.8%
- HCLTech: -1.5%
- Wipro: -1.3%
Investors are closely watching Q1 FY26 earnings for further direction. The IT sector is also sensitive to macroeconomic signals from the U.S., which remains its largest revenue base.
Banking and Financials: Under Pressure
The Nifty Bank index declined by 0.6%, weighed down by private lenders. Weak loan growth data and concerns over asset quality led to a fall in investor confidence. Despite strong long-term fundamentals, the banking sector has seen sideways movement amid rising interest rate uncertainties.
Top Banking Losers:
- ICICI Bank: -1.2%
- Axis Bank: -1.0%
- Kotak Mahindra Bank: -0.8%
NBFCs such as Bajaj Finance also witnessed mild selling after reporting in-line quarterly results.
Realty Sector: The Bright Spot
The Nifty Realty index outperformed all others, gaining 1.2%. This was driven by optimism around residential and commercial demand, aided by falling home loan interest rates and positive project launch data from Tier 1 cities.
Top Realty Gainers:
- DLF: +2.8%
- Godrej Properties: +2.3%
- Oberoi Realty: +1.9%
Recent government reforms to speed up project approvals and state-level stamp duty cuts have further boosted the sector’s growth outlook.
Other Sectoral Trends
- Nifty Auto ended flat, with gains in M&M offset by losses in Maruti.
- Nifty FMCG held steady as HUL and ITC saw mixed reactions post-earnings.
- Nifty Metal saw mild gains driven by Hindalco and Vedanta as global metal prices remained supportive.
Broader Markets Mixed
While frontline indices declined, broader markets remained more resilient:
- Nifty Midcap 100 closed nearly flat.
- Nifty Smallcap 100 gained 0.2%.
This reflects selective buying in pockets like PSU stocks, realty, and defense-linked counters. However, analysts caution that valuations in smallcap and midcap space are elevated and may lead to volatility.
Global Market Influence
Global markets also played a role in dragging Indian indices lower. The U.S. markets closed mildly negative amid cautious commentary from Federal Reserve officials, hinting at a “data-dependent” approach to rate cuts.
Asian peers like Nikkei and Hang Seng fell over 1%, while European markets opened in the red. Weak Chinese macroeconomic data and growing geopolitical concerns in the Indo-Pacific region further dampened investor mood globally.
Institutional Activity
- Foreign Institutional Investors (FIIs) were net sellers to the tune of ₹1,143 crore.
- Domestic Institutional Investors (DIIs) remained net buyers, infusing ₹892 crore.
The selling by FIIs was attributed to risk aversion ahead of the U.S. Fed policy and earnings season abroad. However, strong DII inflows are helping to cushion the downside, signaling long-term confidence in the Indian growth story.
Expert Commentary
Ajay Bagga, Market Analyst:
“The market is undergoing a healthy correction after a sharp rally. Profit booking in IT and BFSI is natural, and we expect bottom-fishing to emerge soon. Realty and PSU sectors remain strong bets going into the festive season.”
Sonal Varma, Chief Economist, Nomura India:
“Macro indicators remain positive, with inflation easing and the rupee stable. However, global uncertainties will likely keep markets range-bound.”
Technical View
According to analysts, the Nifty 50 formed a bearish candle on the daily chart and faces resistance at 25,300. A breakdown below 25,000 could open further downside to 24,800. However, strong support exists near 24,900.
The Relative Strength Index (RSI) is showing signs of cooling off from overbought levels, suggesting a short-term pause in the rally.
For Sensex, the immediate support lies at 82,000, with resistance around 83,000.
Stocks in Focus
Gainers:
- DLF (+2.8%): Riding on a strong launch pipeline and robust Q1 bookings.
- Adani Ports (+1.7%): Gained after securing new contracts in Vizhinjam.
- Coal India (+1.5%): Buoyed by expectations of increased domestic coal demand.
Losers:
- TCS (-2.1%): Fell due to cautious IT sector outlook and high valuations.
- ICICI Bank (-1.2%): Weighed down by profit-taking post results.
- Maruti Suzuki (-1.1%): Declined due to concerns over export volumes.
Outlook for Tomorrow
The market is likely to remain volatile ahead of upcoming corporate results and global central bank commentary. Key data points to watch include:
- U.S. retail sales and jobless claims
- Eurozone inflation data
- India’s WPI inflation figures
- Q1 results from Hindustan Unilever, SBI Cards, and HDFC AMC
Investors are advised to maintain a stock-specific approach with a focus on quality names in realty, power, auto ancillaries, and consumption themes.
Conclusion
The correction in Indian equity benchmarks today was driven by weakness in heavyweight sectors like IT and banking. However, the continued strength in real estate and selective buying in midcaps indicates that the overall bullish structure of the market remains intact.
With global uncertainties still playing a key role, traders and investors need to adopt a cautious approach in the near term. A clear breakout above resistance levels will be required to resume the next leg of the rally.
Long-term investors should use dips as buying opportunities in structurally strong sectors such as real estate, infrastructure, capital goods, and digital transformation-related themes.
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