The Indian stock market concluded the week ending 25th July 2025 with a notable downtrend, marking its fifth consecutive weekly decline and reflecting a persistent subdued sentiment throughout July. While the week began with a positive rebound, driven by strong performances in specific sectors, the momentum could not be sustained, leading to overall losses for the benchmark indices. This period was characterised by a mixed bag of corporate earnings, continued foreign institutional selling, and robust domestic institutional buying, all set against a backdrop of evolving global economic factors.
Table of Contents
- Key Market Indices Performance – Sensex & Nifty Weekly Wrap
- Sectoral Performance Overview
- Top Stock Market News – Domestic & Global Events
- FII and DII Activity – Weekly Institutional Flow
- IPO Market Update – Listings, Subscriptions, and New Issues
- Top Gainers and Losers – Weekly Movers
- Economic and Global Cues – Inflation, Crude, Global Risks
- Final Takeaway – Weekly Summary
The performance of India's benchmark indices, the Sensex and Nifty, during the week of 21st to 25th July 2025 presented a complex picture, oscillating between initial optimism and an eventual return to a bearish trend. The week ultimately saw both indices register losses, extending a multi-week downtrend that has characterised market sentiment throughout July.
Weekly Movement of Sensex and Nifty
The trading week commenced on Monday, 21st July, with a positive note.
- The BSE Sensex surged by 442.61 points, equivalent to a 0.54% gain, to close at 82,200.34.
- The NSE Nifty 50 settled at 25,090.70 levels, marking an increase of 122.30 points or 0.49%. This positive start notably saw the Nifty reclaim the crucial 25,000 psychological mark.
However, this initial buoyancy proved fleeting. By Friday, 25th July, the benchmark indices had reversed course significantly.
- The Sensex dropped by 721 points, a decline of 0.88%, settling at 81,463.09.
- The Nifty 50 also experienced a substantial fall, declining by 225 points, or 0.90%, to close the day at 24,837.00. This downward movement meant the Nifty 50 had once again slipped below the 25,000 level. Technical analysis further reinforced this weakening trend, with the Nifty 50 forming three consecutive bearish candles on the weekly chart, signalling continued underlying weakness.
Highlights of Gains or Losses
The overall week concluded with both the Sensex and Nifty recording marginal losses, confirming a challenging period for the broader market.
- Interestingly, while the large-cap benchmarks struggled, the broader market segments, specifically mid-cap and small-cap indices, demonstrated a degree of resilience. These segments generally outperformed the benchmark indices, registering weekly gains of 1.04% and 1.46% respectively.
- On Monday, the BSE Midcap index rose by 0.5%, indicating some strength in the mid-sized companies, although the Smallcap index closed flat.
- The India VIX, a key measure of market volatility, decreased by 1.67% to 11.20 points on Monday, reflecting a reduction in market anxiety at the beginning of the week.
Sectoral Performance Overview (July 21-25, 2025)
The week's market movements revealed a clear divergence in sectoral performance, reflecting a shift in investor preference. While the broader market indices like Nifty 50 and Nifty 500 experienced declines, the Financial Services sector showed resilience. Several other sectors, including IT, FMCG, Metal, Oil & Gas, and PSU Banks, faced selling pressure.
Top Weekly Gainers:
Nifty Financial Services: +0.62%
- Details: This sector demonstrated resilience, largely driven by strong quarterly earnings reports from major private sector banks. Investors sought stability in banking stocks amidst broader market caution.
- Key Stocks Contributing: HDFC Bank (+1.66% on July 25th) and ICICI Bank (+2.60% on July 25th) were notable performers, providing significant positive impetus following their better-than-expected profits.
Nifty Auto: +0.35%
- Details: Despite some intra-week volatility, the Nifty Auto index ended the week with minor gains. News regarding US-Japan trade deals and positive domestic market updates may have offered some support.
- Key Stocks Contributing: Motherson Sumi (+0.46%) and Tata Motors (+2.76%) showed positive weekly returns.
Top Weekly Losers:
Nifty FMCG: -3.41%
- Details: Contrary to being a defensive play, the FMCG sector faced significant selling pressure this week. This could be attributed to broader market weakness and investor profit booking.
- Key Stocks Impacted: Tata Consumer (-2.44%) and United Breweries (+0.21% on July 25th, but overall weekly decline).
Nifty PSU Bank: -2.22%
- Details: Public Sector Undertaking banks experienced declines, indicating a cautious sentiment in the broader banking space beyond the private sector giants.
- Key Stocks Impacted: UCO Bank (-4.54%) and Punjab & Sind Bank (-4.60%) were among the notable decliners.
Nifty Metal: -1.18%
- Details: The metal sector saw a decline, possibly influenced by global cues and profit booking after recent gains.
- Key Stocks Impacted: The entire sector faced broad-based declines, with all 15 constituents experiencing losses on July 25th.
Nifty Oil & Gas: -1.08% (as of July 21st, significant early week decline)
- Details: This sector was heavily impacted by new EU restrictions on Russian oil, leading to a broad-based decline across its constituents.
- Key Stocks Impacted: Reliance Industries (-2.17% on July 21st) was a significant drag on the index. Chennai Petroleum Corporation Ltd. also slipped -8.81% on July 25th.
Broader Market Indices:
BSE Midcap: -1.65% (as of July 25th, 2025 - This seems to be a daily change as of 25th, so actual weekly performance would need a look at the change from July 19th/20th to July 25th)
Nifty Midcap Select: -1.2% (for the week ending July 25th, 2025)
Nifty Midcap 50: -1.1% (for the week ending July 25th, 2025)
BSE Smallcap: -0.14% (as of July 23rd, broader weakness observed for the week)
- Details: Broader market segments, especially mid-cap and small-cap companies, experienced notable declines, indicating widespread selling pressure and a "risk-off" environment.
- Key Stocks Impacted: Bajaj Finance (-4.81% on July 25th), APL Apollo Tubes Ltd (-8.09% on July 25th), and Intellect Design Arena Ltd (-9.10% on July 25th) were among the prominent mid/small-cap losers this week.
Wrap-up: The week saw a mixed performance in the Indian equity markets. While the Nifty and Sensex initially showed some positive movement, largely driven by strong Q1 FY26 earnings from private sector banks, the latter half of the week witnessed a downturn in many sectors.
The outperformance of Financial Services highlights investor preference for stability in key banking names, while other sectors, particularly FMCG, Metal, and Oil & Gas, faced significant headwinds due to various factors including global cues, fresh restrictions, and profit booking. The broader market, represented by mid-cap and small-cap indices, generally experienced declines, indicating a cautious and selective approach by investors.
The Indian stock market's movements this week were significantly influenced by a combination of domestic corporate developments, particularly the ongoing earnings season, and various global economic and geopolitical factors.
Major Domestic News Events
The Q1 FY26 earnings season emerged as a primary catalyst for market fluctuations. Early reports indicated a slowdown in revenue and profit growth, reaching a nine-quarter low for overall revenue and profit growth when excluding Reliance Industries.
- The Banking and Finance Sector: Presented a mixed picture. While overall growth was weak, major private banks showcased resilience.
- ICICI Bank: Shares rose over 2.5% on Monday after reporting a substantial 15.9% year-on-year increase in consolidated net profit for Q1 FY26, reaching ₹13,558 crore.
- HDFC Bank: Shares also rose by 2.20% on Monday, despite a slight 1.31% decrease in consolidated net profit to ₹16,258 crore.
- However, other banking names like Axis Bank reported disappointing results.
- The IT Sector: Recorded its lowest five-quarter performance. Companies such as HCL Tech and Tech Mahindra reported disappointing figures, and Wipro also saw its shares decline.
- Reliance Industries (RIL): Shares dropped by over 3% despite reporting its highest quarterly profit of ₹26,994 crore, attributed to slowing core revenue growth and concerns over softness in its oil-to-chemicals and retail segments.
- Eternal (Zomato Parent): Posted a significant 90% year-on-year decline in its Q1 FY26 profit after tax (PAT) to just ₹25 crore, despite robust revenue growth.
- UltraTech Cement: Reported a 49% year-on-year increase in net profit for Q1 FY26, but fell short of analysts' expectations.
- Other Corporate News: Included a 3% decline in Dodla Dairy’s Q1 profit and a fall in Havells India’s consolidated net profit. Concerns over worsening asset quality and high credit costs overshadowed strong loan growth at Bajaj Finance, further exacerbated by the managing director's exit. Anil Ambani group stocks hit a 5% lower circuit following Enforcement Directorate raids.
Major Global News Events and Impact
- US Federal Reserve's Outlook: US President Donald Trump indicated a positive meeting with Fed Chair Jerome Powell, suggesting a readiness to lower interest rates. However, the broader consensus was that the Fed would likely hold its benchmark interest rate.
- Global Trade Concerns: Initially caused some hesitation, with an analyst flagging growing risks from sustained high tariffs. Conversely, India's Commerce Minister expressed optimism about trade deal talks with the US.
- Crude Oil Prices: Saw a slight uptick on July 21st following EU sanctions on Russia, raising concerns about potential supply disruptions. Global oil benchmark Brent crude decreased slightly. The average global crude price had increased to a three-month high in June 2025 due to the Israel-Iran conflict.
- Broader Market Performance: Asian markets generally showed strength on Monday, while European markets traded lower and US markets closed mixed on the preceding Friday.
The investment patterns of Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) provided a significant narrative, highlighting a crucial dynamic between foreign capital outflows and robust domestic support.
Trends in Foreign Institutional Investor (FII) Activity Foreign Institutional Investors (FIIs), also known as Foreign Portfolio Investors (FPIs), continued their selling streak in the Indian equity markets throughout the week.
- Monday, 21st July: FIIs were net sellers, offloading equities worth ₹1,681.23 crore.
- Tuesday, 22nd July: FIIs recorded net sales of ₹3,548.92 crore.
- Wednesday, 23rd July: FIIs were net sellers, offloading equities worth ₹4,209.11 crore.
- Thursday, 24th July: FIIs were net sellers of ₹2,133.69 crore in the cash market.
- Friday, 25th July: FIIs were net sellers of ₹4,209.11 crore in the cash market.
Domestic Institutional Investor (DII) Flows In stark contrast, Domestic Institutional Investors (DIIs) remained strong and consistent buyers throughout the week.
- Monday, 21st July: DIIs were net buyers of ₹3,578.43 crore.
- Tuesday, 22nd July: Their buying increased significantly, reaching ₹5,239.77 crore.
- Wednesday, 23rd July: DIIs continued with net purchases of ₹4,358.52 crore.
- Thursday, 24th July: DIIs continued with net purchases of ₹2,617.14 crore in the cash market.
- Friday, 25th July: DIIs were net buyers of ₹4,358.52 crore in the cash market.
Impact on Market Sentiment
The persistent selling by FIIs amplified the market's weakness. However, the robust buying by DIIs played a pivotal role in absorbing a substantial portion of these FII outflows, thereby preventing a much sharper market decline. This dynamic suggests that domestic liquidity is increasingly vital in stabilising the Indian market amidst external selling pressure.
Despite the prevailing volatility and subdued sentiment in the secondary market, the primary market for initial public offerings (IPOs) remained remarkably active during the week, showcasing a robust appetite for new investment opportunities.
Key IPOs and Listings of the Week
The week of 21st to 25th July 2025 was exceptionally busy for the primary market, with a total of 12 notable IPO-related events.
- Anthem Biosciences IPO (Mainboard): Made a strong listing debut on Monday, 21st July, after its subscription period closed on 16th July. The company listed at a substantial premium, clearly reflecting robust investor demand. The IPO, valued at ₹3,395.79 crore, saw an impressive overall oversubscription of 67.42 times (QIBs: 192.80 times, NIIs: 44.70 times, Retail: 5.98 times).
- Spunweb Nonwoven IPO (SME): Listed on 21st July.
- Monika Alcobev IPO (SME): Listed on 23rd July.
GMP Trends and Subscription Updates
- The Grey Market Premium (GMP) for Anthem Biosciences stood at ₹163 on 20th July, prior to its listing, suggesting an estimated listing price of ₹733 and a potential listing gain of 28.60% over its cap price of ₹570.
Upcoming IPOs in the Next Week
Several new IPOs were scheduled to open for subscription, indicating continued investor interest in fresh offerings.
Mainboard IPOs:
SME IPOs (tentative dates and subject to change):
The week's performance of individual stocks was largely dictated by corporate earnings reports, with significant movements observed in both gainers and losers across various sectors.
Top Gainers (July 21-25, 2025):
- ETERNAL (formerly known as Zomato): +7.50% (on July 21st, closing at ₹276.50). This significant jump was likely driven by strong investor interest and positive sentiment surrounding its performance.
- ICICI Bank: +2.60% (on July 25th, closing at ₹1,464.50 on July 21st). The private sector banking giant was a top performer, benefiting from robust Q1 FY26 earnings.
- HDFC Bank: +1.66% (on July 25th, closing at ₹2,001.50 on July 21st). Similar to ICICI Bank, strong Q1 FY26 results from this banking behemoth fueled investor confidence.
- Gravita India Limited: +3.15% (on July 25th, closing at ₹1870.00). This stock showed strong gains, potentially driven by company-specific positive developments or sector tailwinds.
- Home First Finance Company India Ltd: +1.70% (on July 25th, closing at ₹1439.90). This financial services company saw a notable increase, aligning with the broader financial sector's resilience.
Top Losers (July 21-25, 2025):
- Nestle India: -5.57% (on July 24th, closing at ₹2,316.00). This FMCG major experienced a significant decline, indicating pressure in the consumer goods sector this week.
- Bajaj Finance: -4.70% (on July 25th, closing at ₹913.65). Analysts flagged asset quality pressures in the MSME segment after Q1 results, leading to a sharp drop.
- Intellect Design Arena Ltd: -9.38% (on July 25th, closing at ₹1,034.70). This IT stock faced significant selling pressure, likely due to broader IT sector weakness or company-specific concerns.
- APL Apollo Tubes Ltd: -9.00% (on July 25th, closing at ₹1,541.30). This stock saw a substantial decline, contributing to the overall cautious sentiment in the broader market.
- Chennai Petroleum Corporation Ltd: -8.81% (on July 25th, closing at ₹687.60). The company reported a net loss in Q1 FY26, which significantly impacted its stock price.
- Reliance Industries Ltd (RIL): -3.24% (on July 21st, closing at ₹1,428.20). New EU restrictions on Russian oil likely impacted this oil & gas major.
- Tech Mahindra: -3.26% (on July 24th). This IT services company faced declines in line with broader IT sector weakness.
- Bajaj Auto Ltd: -2.58% (on July 25th, closing at ₹8,074.50). This auto sector stock experienced a decline, reflecting broader selling pressure in growth-oriented sectors.
- National Aluminium Co Ltd (NALCO): -2.66% (on July 25th, closing at ₹193.60). This metal sector stock faced declines, consistent with the overall weakness in the metal index.
Wrap-up: The week's performance clearly illustrated a selective "risk-on/risk-off" environment. Investors moved capital into financial services, especially private banks, due to strong earnings. Conversely, significant drops in stocks like Bajaj Finance, Intellect Design Arena, and Chennai Petroleum, following analyst concerns or disappointing Q1 earnings, demonstrated the market's high sensitivity to corporate performance and external factors. The broader market and sectors like FMCG, IT, and Metal faced headwinds, indicating a prevailing cautious sentiment.
Beyond corporate earnings and institutional flows, broader economic and global factors played a crucial role in shaping the Indian stock market's performance.
RBI Decisions and Statements
- RBI Governor Sanjay Malhotra affirmed no proposal to allow corporates or NBFCs to obtain banking licenses, citing "inherent conflict of interest."
- The Monetary Policy Committee (MPC) maintains a neutral stance, with future rate decisions being "data driven," looking 6 to 12 months ahead.
- The RBI last cut the repo rate by 50 basis points on June 6th to 5.5% and shifted to a neutral stance. It also announced a phased 1% cut in the Cash Reserve Ratio (CRR) from 4% to 3%.
- Malhotra confirmed no plans to revise the 26% limit on promoter shareholding in private banks.
Inflation Numbers
- India's Consumer Price Index (CPI) inflation eased for the eighth consecutive month, falling to a multi-year low of 2.1% in June 2025, driven by a 1.06% drop in food prices.
- However, core CPI inflation, excluding volatile food and fuel prices, increased to 4.6%.
- The Wholesale Price Index (WPI) also showed a contraction in prices at (-)0.1% in June 2025.
Crude Oil Updates
- Crude oil prices exhibited mixed signals, with a slight uptick on July 21st following EU sanctions on Russia, but global oil benchmark Brent crude decreased. The average global crude price had increased to a three-month high of US$69.1/bbl in June 2025, partly due to the Israel-Iran conflict.
US Fed News
- US President Donald Trump's comments suggested a readiness to lower interest rates. However, the broader market expectation was that the Federal Reserve would hold its benchmark interest rate steady at 4.25%-4.50% following its upcoming policy meeting. US inflation had risen to 2.7% last month.
The Indian stock market experienced its fifth consecutive weekly decline from July 21st to 25th, 2025, primarily due to a mixed Q1 corporate earnings season, sustained foreign institutional selling, and evolving global economic uncertainties. While the week began with a positive rebound, the momentum could not be sustained.
Key highlights:
- Both Sensex and Nifty registered losses, with Nifty falling below the 25,000 mark again.
- Mid-cap and small-cap indices showed resilience, outperforming the large-cap benchmarks.
- Financials, Auto, and Metals showed strength early in the week, while Oil & Gas, PSU Bank, FMCG, Healthcare, and IT faced selling pressure. Pharmaceuticals gained towards the end of the week.
- Corporate earnings were the primary driver of individual stock movements, with significant gains for ICICI Bank and Cipla, and sharp declines for Reliance Industries (due to slowing core revenue), Bajaj Finance, and IT companies like Tech Mahindra and Intellect Design.
- Foreign Institutional Investors (FIIs) were persistent net sellers, while Domestic Institutional Investors (DIIs) provided crucial support through robust net buying, preventing a sharper market downturn.
- The primary IPO market remained active with strong oversubscriptions for new issues like Anthem Biosciences, indicating selective investor appetite for fresh opportunities.
- RBI's neutral stance and easing headline inflation provided some comfort, but persistent core inflation suggested a cautious path for future monetary policy. Global trade concerns and US Fed's outlook also influenced market sentiment.
Overall, the week was characterised by a "stock-picker's market" where fundamental performance was closely scrutinised, and domestic liquidity played a vital role in cushioning against external headwinds. The resilience of broader market segments and sustained IPO activity point to underlying confidence among domestic investors despite short-term volatility.