Synopsis : Indian markets witnessed a sharp decline on Friday as the Sensex dropped 600 points and Nifty breached the 25,000 mark. Heavy selling in banking stocks, especially Axis Bank’s 5% fall post-Q1 results, triggered broad-based market weakness.
Stock Market Update – July 18, 2025
Indian equity markets opened on a flat note but quickly slipped into negative territory on Friday, driven by sharp declines in banking stocks. The BSE Sensex tumbled over 600 points, while the NSE Nifty broke below the key 25,000 level, signaling widespread investor unease.
The early catalyst for the slide was Axis Bank, which plunged 5% to ₹1,102.60 after disappointing quarterly results. As a result, Bank Nifty opened 165 points lower at 56,660, dragging the overall benchmarks down.
Broader indices mirrored this weakness, with Nifty Midcap starting flat at 59,500. Market participants pointed to persistent selling by Foreign Institutional Investors (FIIs) as a key contributor to the decline. FIIs have been increasing short positions in the derivatives market, indicating a bearish view driven by elevated valuations in Indian markets versus more attractive options abroad.
Expert Commentary:
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that India has underperformed global markets by 1.6% in July. “Unless there's a strong positive trigger, FII selling may persist due to India’s high valuations,” he said.
However, global cues offered some relief, with Wall Street ending higher as investor sentiment improved. President Trump’s clarification on Fed Chair Powell’s position and a rebound in US retail sales bolstered global confidence. Fed Governor Waller’s support for a 25 bps rate cut in July also lifted market sentiment.
Technical View:
According to Prashanth Tapse, Senior VP at Mehta Equities, Nifty remains technically bullish above 25,470, with key support at 25,000 and resistance near 26,000.
Top Gainers:
In early trade, stocks such as Wipro, M&M, Tata Steel, JSW Steel, and ONGC showed strength and emerged as top Nifty 50 gainers.
Top Losers:
Axis Bank led the losses, followed by Kotak Mahindra Bank, SBI Life Insurance, Bharti Airtel, and Zomato.
Major Drags:
Besides Axis Bank, HDFC Bank, ICICI Bank, and Bharti Airtel also contributed significantly to the market’s morning slump.
Disclaimer : This article is for informational purposes only and should not be taken as financial advice. Always consult with a certified financial expert before making investment decisions.
