Market Overview: Benchmarks End Lower for Fourth Straight Session
Indian equity markets continued their losing streak on Monday, July 14, 2025. The BSE Sensex dropped by 247 points to close at 82,253, while the Nifty 50 fell 67.6 points, finishing the day at 25,082. Sentiment remained subdued as investors offloaded heavyweights in the IT sector following weak earnings reports.
The benchmark indices have now declined for four consecutive sessions, with the Sensex shedding nearly 1,459 points and the Nifty losing over 2 percent in this period. Despite weakness in large-cap counters, broader markets remained resilient, supported by selective buying in mid- and small-cap segments.
IT Sector Drags Down Markets
The Nifty IT index was the worst-performing sector of the day, losing over 1.1 percent, led by losses in TCS, Infosys, Wipro, HCL Tech, and Tech Mahindra. The downturn followed weaker-than-expected Q2 results from TCS, coupled with global demand concerns and rising macro uncertainty.
Investor worries were further exacerbated by reports of potential new U.S. tariffs on tech imports, which could dent outsourcing and software services revenue from major Indian IT firms. The sectoral drag was significant enough to pull down the broader indices despite strength in other pockets.
Broader Markets Outperform Large Caps
While frontline indices fell, the BSE Midcap and Smallcap indices ended higher by 0.76 percent and 1.01 percent respectively. Stocks in the healthcare, power, and FMCG sectors witnessed fresh buying, reflecting investor interest in defensives amid global volatility.
Out of the 13 sectoral indices on the NSE, 10 closed in the green. Notable strength was observed in PSU banks, realty, and auto stocks, which helped cushion the overall decline. The outperformance of broader markets is being seen as a positive sign of internal market strength, despite large-cap weakness.
Top Gainers Today
Several stocks bucked the broader downtrend and recorded strong gains on the NSE:
- Titan Company: +2.71%
- IndusInd Bank: +2.05%
- ONGC: +1.94%
- Eicher Motors: +1.84%
- SBI Life Insurance: +1.74%
Titan rose on expectations of strong Q2 consumer demand, while IndusInd Bank gained amid improved credit growth forecasts. ONGC saw a lift from stable crude prices and output guidance.
Top Losers Today
On the losing side, IT stocks dominated the red zone:
- Tech Mahindra: –1.87%
- Wipro: –1.63%
- HCL Tech: –1.59%
- TCS: –1.44%
- Infosys: –1.23%
The decline in Tech Mahindra followed negative brokerage commentary post its earnings report, while Wipro and HCL Tech saw institutional profit booking. The broader tech sector is witnessing a recalibration of valuation amid reduced growth guidance.
Currency Update: Rupee Weakens on Dollar Demand
The Indian rupee closed at ₹85.99 per US dollar, weakening by nearly 19 paise from the previous session. This marked its lowest level in over two weeks. The decline was attributed to corporate dollar outflows, rising import payments, and sustained FII selling in equities.
Traders also cited caution ahead of the U.S. inflation data release and possible changes to tariff policy, which are keeping the dollar index elevated. Currency weakness is adding to the overall cautious stance in Indian equities.
Global Cues: Tariff Worries and Tech Pressure
Investor sentiment was dented by global reports suggesting the U.S. administration may impose a 30 percent tariff on imports from the European Union and Mexico. This added to fears of a renewed global trade war, hitting risk assets across markets.
The Nasdaq and S&P 500 also saw mild declines in pre-market trading, weighed by tech stock correction and disappointing guidance from U.S.-based software firms. This global tech pullback spilled over into Indian markets, especially the export-heavy IT segment.
FII/DII Activity and Market Breadth
According to provisional data, Foreign Institutional Investors (FIIs) were net sellers worth ₹2,756 crore, marking the fourth consecutive day of outflows. On the other hand, Domestic Institutional Investors (DIIs) remained net buyers, absorbing ₹1,435 crore worth of equities.
The market breadth remained slightly positive on the NSE, with 1,299 stocks advancing, 1,180 declining, and 82 remaining unchanged. This divergence between large-cap decline and broader market support reflects a nuanced sentiment rather than panic selling.
Technical View and Outlook
From a technical standpoint, the Nifty has slipped below its 20-day moving average, indicating short-term bearishness. Analysts expect the 24,950–25,000 zone to act as immediate support, while 25,300 remains a resistance on the upside.
The market is likely to remain volatile in the coming sessions, with focus shifting to upcoming domestic earnings, WPI inflation data, and U.S. macro indicators. The IT sector will remain under scrutiny, while investors are expected to rotate into consumption, PSU, and defensive segments.
The Indian stock market ended in negative territory on July 14, 2025, led by a sharp sell-off in IT majors and continued foreign outflows. Despite the drag from heavyweight tech stocks, broader market resilience offered a silver lining, with mid- and small-cap indices gaining ground.
Currency weakness, trade war fears, and weak earnings commentary have made investors risk-averse. However, institutional buying in selective sectors and healthy market breadth hint at underlying strength. Caution is expected in the short term, but long-term fundamentals remain intact.
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