Nifty Slips Below 24,750 as FII Selling, Kotak Earnings Hit Sentiment

The Indian stock market kicked off the week on a sluggish note, with the Sensex dipping over 300 points and Nifty falling below 24,750, thanks to weak earnings by Kotak Mahindra Bank and uncertainty surrounding India-U.S. trade talks. Investor sentiment took a hit as major IT and private banking stocks declined sharply.

By 9:18 am, Sensex was down 326 points at 81,136 and Nifty50 lost 95 points, sliding to 24,736. However, markets quickly tried to recover from the initial dip.

Also Read: Kotak Mahindra Stock Drops After Profit Dip - Time to Sell or Hold?

IT, Banking Stocks Under Pressure

Top losers included Kotak Mahindra Bank (down 5.5%), Infosys, TCS, and Bharti Airtel, following Kotak’s Q1 profit decline driven by rising provisions and shrinking margins. Meanwhile, TCS fell 1.5% after announcing a 2% job cut (~12,200 jobs) for FY26, as it shifts towards AI and adapts to slower global demand. On the flip side, Tata Motors, ICICI Bank, and UltraTech Cement showed early gains.

Real Estate, Private Banks Lag

The Nifty Realty index dropped 2.3%, led by Lodha, Prestige, and Oberoi Realty, while the Nifty Private Bank index fell 1.1% due to Kotak's steep fall. Broader markets were mixed — the Nifty Midcap 100 edged up 0.2%, but Smallcap 100 slipped 0.1%.

Expert View

According to Dr. VK Vijayakumar of Geojit Investments, ongoing FII selling (Rs 13,552 crore last week) and uncertainty around India-U.S. trade agreements have dented investor confidence. He added, “Q1 results haven’t surprised on the positive side, so caution is key.”

Mandar Bhojane from Choice Broking believes Nifty must cross 25,150 for any significant upward momentum. Until then, expect a sideways to bearish trend.

Global Markets: Slight Recovery Seen

Global cues were mildly positive. A U.S.-EU trade agreement helped lift sentiment. S&P 500 futures rose 0.4%, and Nasdaq futures gained 0.5%. The Euro strengthened, while European futures surged nearly 1%. However, Japan's Nikkei retreated 0.8% after last week’s high.

FII vs. DII Activity

On July 25, FIIs continued their selling streak, dumping Rs 1,979 crore, while DIIs supported the market with Rs 2,138 crore in net buying. Institutional tug-of-war continues amid volatility.

Also Read: Bajaj Finance Shares Crash 5% After Q1 Results 2025 — Buy or Hold?