On July 31, 2025, the Indian stock market closed lower in a highly volatile session, with the Sensex and Nifty erasing early gains to end in the red. Profit-taking in banking and IT sectors, coupled with mixed global cues and ongoing US tariff concerns, weighed on sentiment. Below is a precise summary of the day’s market performance, key drivers, and sectoral trends.
Market Performance
BSE Sensex: Fell 296.28 points (0.36%) to close at 81,185.58, with an intraday high of 81,975.32 and a low of 81,185.58.
NSE Nifty 50: Dropped 86.70 points (0.35%) to settle at 24,768.35, trading between 24,921 and 24,768.35 intraday.
Market Breadth: On the BSE, ~1,800 stocks advanced, 2,200 declined, and 150 were unchanged out of ~4,150 traded stocks. About 170 stocks hit the upper circuit, and 150 hit the lower circuit.
Volatility: The India VIX rose 5% to ~15.3, reflecting heightened uncertainty ahead of the US tariff deadline and Federal Reserve cues.
Key Drivers
Global Market Cues: Mixed global signals, with the S&P 500 futures down 0.2% and Nikkei 225 flat, dampened sentiment. Uncertainty over US tariffs (August 1 deadline) and the Federal Reserve’s upcoming rate decision added pressure.
Earnings Season: Mixed Q1 FY26 earnings continued, with banking and IT underperforming, offsetting gains in energy and pharma.
FII and DII Activity: Foreign Institutional Investors (FIIs) sold ~₹2,500 crore, while Domestic Institutional Investors (DIIs) bought ~₹1,800 crore, limiting losses.
Rupee Movement: The Indian rupee weakened 5 paise to 86.51 against the US dollar, impacted by FII outflows and a stronger dollar (DXY at 97.10).
Domestic Macros: Strong GST collections (₹2.01 lakh crore, May 2025) and an above-normal monsoon supported sentiment, but global uncertainties dominated.
Sectoral Highlights
Sectoral Trends: Nifty Energy (+0.8%) and Pharma (+0.6%) gained, while Nifty Bank (-1.2%) and IT (-1.5%) led losses. Nifty Midcap 100 and Smallcap 100 fell 0.5% and 0.7%, respectively.
Broader Market: Selling was broad-based, with large-cap banking and IT stocks driving the decline, while selective buying occurred in mid and small-caps.
Market Sentiment: The market opened higher but reversed due to profit-taking in heavyweights. GIFT Nifty futures at ~24,750 signaled a cautious start for the next session.
Corporate Developments
Adani Green: Q1 profit up 31% YoY to ₹824 crore, supporting energy gains.
Waaree Energies: Q1 net profit rose 89% to ₹745 crore, boosting renewables.
HDB Financial Services: Post-IPO listing stabilized, aiding financial sentiment.
Mazagon Dock: Gained after ₹452 crore Colombo Dockyard stake acquisition.
Tata Consumer: Q1 results missed estimates, impacting FMCG sentiment.
Market Outlook
Technical Levels: Nifty support at 24,580 (100-day EMA)–24,500, resistance at 24,950–25,000. Sensex support at 81,000–80,500, resistance at 82,200–83,000. A break below 24,580 could target 24,400.
Volatility Expectations: VIX at ~15.3 suggests continued volatility, driven by US tariff talks and earnings.
Upcoming Triggers: Federal Reserve rate decision, US Core PCE data, India’s Q1 FY26 earnings, and US tariff outcomes (August 1) will guide sentiment. Monsoon progress and oil prices remain critical.
Conclusion
On July 31, 2025, the Indian stock market closed lower, with the Sensex at 81,185.58 (down 0.36%) and Nifty at 24,768.35 (down 0.35%), driven by profit-taking in banking and IT amid US tariff concerns and mixed earnings. Energy and pharma sectors provided some support, but FII selling and a rising VIX signaled caution. Investors should monitor Nifty’s 24,580 support and focus on energy and pharma while staying vigilant for US trade and Fed developments.
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