Equity Benchmarks Slide Amid Market Uncertainty

Equity benchmarks opened the week with losses as selling pressures mounted. Analysts expect delays in finalizing the India-US interim trade deal by the August 1 deadline. Despite ongoing challenges, global markets show resilience, boosted by US-EU trade developments and positive domestic fundamentals.


Devdiscourse News Desk | Updated: 28-07-2025 16:26 IST | Created: 28-07-2025 16:26 IST
Equity Benchmarks Slide Amid Market Uncertainty
Representative Image. Image Credit: ANI
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Equity benchmarks began the week on a downcast note, with significant losses recorded on Monday as selling pressure mounted at higher levels. Analysts suggest the India-US interim trade deal is unlikely to be concluded by the looming August 1 deadline, as the US administration confirmed it would not be extended.

Closing figures showed the Sensex at 80,891.02 points, dropping 572.07 points or 0.70%, while the Nifty ended at 24,680.90 points, down 156.10 points or 0.63%. The pharma sector offered slight relief with relative strength, but sectors such as realty, media, banks, metals, and consumer durables faced continuous pressure.

Vinod Nair, Head of Research at Geojit Investments Limited, highlighted that domestic market sentiment remains cautious due to lackluster Q1 earnings, delays in trade agreements between India and the US, and ongoing foreign institutional investor outflows. In contrast, US-EU trade developments have bolstered global markets, which remain optimistic. Decisions by the Federal Reserve and the Bank of Japan, paired with domestic earnings trajectories, are poised to significantly influence market dynamics.

Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, noted that the persistent bearish sentiment led to the benchmark Nifty concluding its third consecutive session in the red. Nevertheless, strong domestic fundamentals, an adaptive Reserve Bank of India, favorable monsoon conditions, and manageable inflation rates in India continue to sustain the financial markets.

Reflecting on past performance, the Sensex and Nifty showed growth of 9-10% in 2024 and a 16-17% increase in 2023, with a modest 3% rise recorded in 2022.

(With inputs from agencies.)

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