The Indian stock market concluded Friday, July 25, 2025, with significant losses for the second consecutive session, reflecting a broad-based sell-off across various segments. Investor sentiment was largely subdued, influenced by persistent foreign institutional investor (FII) outflows, mixed quarterly earnings, and lingering global trade uncertainties.
Despite domestic institutional investor (DII) support, the benchmark indices, along with mid- and small-cap segments, ended firmly in the red, signalling a cautious mood among market participants. This daily wrap-up provides a professional yet simple overview of the Indian stock market today, detailing key movements, top stock market news, FII DII activity, and the stock market outlook India for the coming week.
Table of Contents
- Nifty and Sensex Today – Key Market Indices Performance
- Sector-wise Performance
- Top Stock Market News of the Day – What Moved the Markets
- FII and DII Activity Today – Where Big Money Moved
- IPOs, Listings and Market Buzz – Latest Stock Market Trends
- Top Gainers and Losers – Best and Worst Performing Stocks
- Economic and Global Factors – What Else Affected Markets
- What to Watch in the Coming Week – Key Events and Predictions
- Final Takeaway – Summary of Stock Market Day
The Indian benchmark indices experienced a notable downturn on Friday, July 25, 2025, extending their losing streak.
The 30-shareBSE Sensex declined by 721.08 points, or 0.88 %, to close at 81,463.09. This significant drop contributed to investors losing an estimated ₹6.5 lakh crore in a single day.
The NSE Nifty 50 followed suit, going down by 225.10 points, or 0.90 %, to settle below the crucial 24,900 mark at 24,837.00. Earlier in the day, the Nifty 50 had already dropped below the 24,900 mark, indicating a broad-based sell-off.
The sell-off was even more pronounced in the broader market segments. The BSE Midcap index declined by 1.46 %, while the Smallcap index crashed by 1.88 %. Similarly, the Nifty MidCap index fell by 1.61 %, and the Nifty SmallCap index edged 2.1 %lower. This disproportionate decline in smaller companies, alongside the broad sell-off, highlights a widespread risk-off approach by investors. It suggests that the bearish sentiment was not merely concentrated in a few large-cap stocks but indicated a systemic loss of confidence, with investors moving away from higher-risk, higher-beta segments.
The market saw widespread selling pressure, with most sectoral indices closing in the red. Only the Nifty Pharma index managed to post a gain, closing up by 0.54 %. The Healthcare sector also did not settle lower. The resilience of the Pharma and Healthcare sectors, standing as the only gainers amidst a market-wide downturn, highlights their traditional role as defensive plays during periods of volatility and uncertainty. This indicates investors are seeking stability and safety in non-cyclical industries that are less sensitive to economic fluctuations.
Major declines were observed across various sectors:
- Nifty Media was the top laggard, falling by 2.6 %.
- Nifty IT closed down by 1.42 %, reflecting sector-specific headwinds and weaker global tech cues.
- Other sectors experiencing significant declines of over 1 %included Nifty Energy, PSU Bank, Oil & Gas, Metal, Auto, and Consumer Durable.
- Nifty Financial Services fell by 0.91 %, and Nifty FMCG was down by 0.9 %.
The India VIX, a measure of market volatility in the domestic market, closed at 11.28, up 5.15 %, reflecting increased market apprehension.
Mixed quarterly earnings announcements from several companies contributed to the negative sentiment. Major drags due to earnings included:
- Ujjivan SFB shares falling on a Q1 profit miss.
- Arkade Developers reporting a Q1 profit decline.
- GNA Axles' net profit being down, causing shares to tank by 7.17 %.
- Nestlé India shares plunging nearly 5 %after missing Q1 profit estimates.
- Canara Bank posting a 21.69 %jump in Q1 net profit, yet its stock declining.
Conversely, some stocks defied the trend with strong earnings or positive news:
- eClerx shares hit a 52-week high as Q1 profit jumped 27 %.
- Laurus Labs' Q1 net profit soared to ₹163.02 crore, with shares remaining flat.
- Cipla's Q1 net profit was up 10 %, leading to a rally of 9.92 %in its stock.
- BEL received a substantial ₹1,640 crore order for Air Defence Fire Control Radars from the Indian Army.
- Indian Energy Exchange (IEX) shares jumped 8.61 %as the Central Electricity Regulatory Commission (CERC) initiated phased market coupling by January 2026.
This mixed bag of Q1 earnings, where major heavyweights contributed to the market drag while others posted strong results and gains, demonstrates selective investor behaviour. This indicates that while overall sentiment is weak, specific company fundamentals and positive news can still drive individual stock performance, suggesting a stock-picker's market rather than a uniform decline.
Other specific stock-related news included Reliance Power hitting the lower circuit on reports of enforcement action, though the company clarified no impact on operations or financials.
CDSL shares were also under pressure, sliding 3 %, ahead of the NSDL IPO launch on July 30. Broader global trade uncertainty also played a role in dragging down market sentiment. However, the ongoing India-UK Free Trade Agreement (FTA) talks offered a glimmer of optimism, with potential tariff relief for key export sectors like seafood, leather, textile, and pharma, sparking rallies in some related stocks.
The interplay between Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) was a critical factor in shaping market sentiment on 25th July 2025. On Thursday, 24th July 2025, FIIs continued their selling spree, offloading equities worth ₹2,133.69 crore in the cash segment. This extended their selling streak to four sessions. Cumulatively, FIIs have been net sellers in July, with total outflows reaching ₹26,395 crore so far, primarily attributed to relatively high valuations in India. This consistent and significant FII selling throughout July indicates a sustained shift in foreign investor sentiment. This pattern is likely driven by a combination of global risk aversion and a re-evaluation of India's stretched valuations, and it acts as a direct and powerful cause of the market's current weakness.
In contrast to FIIs, Domestic Institutional Investors (DIIs) remained net buyers, providing crucial support to the market. On Thursday, 24th July 2025, DIIs purchased equities worth ₹2,617.14 crore. This robust DII buying has largely absorbed the foreign selling throughout July, preventing an even steeper decline in benchmark indices.
The strong and consistent DII buying highlights the underlying strength and confidence of domestic investors. While not enough to fully counter the FII outflows, this domestic liquidity acts as a crucial buffer, preventing a more severe market collapse and demonstrating India's growing self-reliance in capital markets.
The primary market remained active, with several Initial Public Offerings (IPOs) attracting investor attention, even as the secondary market faced headwinds.
GNG Electronics' ₹460.43 crore IPO, comprising a fresh issue of ₹400 crore and an OFS of ₹60.44 crore, closed today (July 25, 2025). The IPO, priced at ₹225-₹237 per share, was subscribed an impressive 55 times. The Grey Market Premium (GMP) stood at ₹100 as of 11:50 a.m. on July 25, indicating a potential listing price of ₹337, a 42.19% premium. Allotment is expected on July 28, 2025, with a tentative listing date of July 30, 2025, on both BSE and NSE. The strong investor demand, despite secondary market challenges, highlights a robust appetite for fundamentally sound new companies in the primary market.
TheIndiqube Spaces IPO, a ₹700 crore issue (₹650 crore fresh, ₹50 crore OFS), had its bidding window from 23rd to 25th July 2025. As of 24th July, it was overall subscribed 1.01 times, with Retail Individual Investors (RIIs) subscribing 3.94 times. There were no new listings on BSE or NSE today, 25th July 2025.
The primary market is set for a busy week, with 13 new issues aiming to raise over ₹7,300 crore across mainboard and SME segments. The National Securities Depository Limited (NSDL) IPO, a much-awaited mainboard IPO, is scheduled to open for bidding on Wednesday, 30th July 2025, and close on 1st August 2025. It aims to raise ₹4,011 crore, making it a significant event.
The busy IPO calendar for the upcoming week, particularly the large NSDL IPO, signifies a continued pipeline of fundraising activity. This could potentially divert some liquidity from the secondary market as investors allocate funds to new issues, but it also reflects underlying economic growth and the confidence of companies in raising capital, which could be a positive long-term signal for the market's expansion and diversification.
Other notable upcoming IPOs include:
On a day marked by significant market declines, a few stocks managed to defy the trend and post gains, while others experienced substantial losses.
Top Gainers (Intra-day July 25, 2025)
Cipla (Pharmaceuticals)
- Current Market Price: ₹1,532.50
- Percentage Change: +3.00%
- Reasons: Cipla emerged as a significant gainer after reporting its Q1 FY26 earnings. The company announced a 10% year-on-year rise in consolidated net profit to ₹1,298 crore and a 4% increase in total revenue from operations to ₹6,957 crore. The strong performance was driven by healthy growth in its "One India Business" and robust traction in its North American and "One Africa" regions. Positive investor sentiment following these results contributed to the sharp rally, particularly in the afternoon session.
SBI Life Insurance (Financial Services/Insurance)
- Current Market Price: ₹1,832.10
- Percentage Change: +2.15%
- Reasons: SBI Life Insurance saw a healthy gain, primarily driven by its positive Q1 FY26 earnings results. The company reported a 14% year-on-year increase in net profit to ₹594 crore and a 14% rise in total net premium revenue. Growth in Assets Under Management (AUM) and Value of New Business (VoNB) also contributed. The company's strategic focus on protection products and improved customer retention further boosted investor confidence.
Apollo Hospital (Healthcare)
- Current Market Price: ₹7,468.50
- Percentage Change: +1.43%
- Reasons: Apollo Hospital continued its positive momentum. While specific daily news for July 25 was not highlighted, the stock likely benefited from continued positive sentiment surrounding its strategic initiatives, such as the spin-off and planned listing of its omni-channel pharmacy and digital health businesses. These moves are aimed at unlocking shareholder value and expanding its retail healthcare footprint, which has generally been met with positive investor response since the initial announcement.
Dr Reddys Labs (Pharmaceuticals)
- Current Market Price: ₹1,277.90
- Percentage Change: +0.98%
- Reasons: Dr. Reddy's Lab closed with a modest gain. The company had recently announced its Q1 FY26 results (on July 24, 2025), which showed an 11% year-on-year increase in revenue, despite a nearly flat net profit. The positive market reaction on July 25 could be attributed to investors focusing on the strong topline growth, particularly from the Global Generics segment, and the company's strategic collaborations.
HDFC Life (Financial Services/Insurance)
- Current Market Price: ₹762.35
- Percentage Change: +0.67%
- Reasons: HDFC Life recorded a marginal gain for the day. While no direct company-specific news explaining this exact intra-day movement on July 25 was prominent, the broader financial sector might have contributed. It's worth noting that HDFC Bank (its parent entity) was ex-dividend on July 25 for a special interim dividend, which could have created some related market activity or general positive sentiment around the HDFC group, indirectly benefiting HDFC Life. The stock also experienced some intraday volatility before closing slightly higher.
The consistent presence of pharmaceutical and healthcare stocks among the top gainers on a day of widespread market decline reinforces their defensive characteristics. This indicates that investors are strategically reallocating capital towards sectors perceived as stable and less susceptible to broader economic headwinds during periods of high volatility.
Top Losers (Intra-day July 25, 2025)
Bajaj Finance (Financial Services/NBFC)
- Current Market Price: ₹913.75
- Percentage Change: -4.71%
- Reasons: Bajaj Finance was the biggest drag on the market today, declining significantly after its Q1 FY26 results. While the company reported a strong 22% year-on-year increase in net profit and a 21% rise in consolidated revenue, concerns over worsening asset quality overshadowed the positive numbers. Specifically, its gross non-performing asset (NPA) ratio increased to 1.03% from 0.96% in the previous quarter, and loan losses and provisions rose by 26% year-over-year. Investors reacted negatively to the asset quality stress, particularly in the MSME and two/three-wheeler loan segments, leading to profit booking after the stock's substantial gains in the last six months.
IndusInd Bank (Banking)
- Current Market Price: ₹823.70
- Percentage Change: -2.85%
- Reasons: IndusInd Bank experienced a notable decline, reflecting the broader weakness in the financial services sector on July 25, 2025. The overall market sentiment was negative, partly due to the weak earnings reported by other financial heavyweights like Bajaj Finance and persistent selling by foreign institutional investors (FIIs). As a prominent private sector bank, IndusInd Bank was impacted by this sector-wide correction and the general risk-off sentiment prevailing in the market.
Shriram Finance (Financial Services/NBFC)
- Current Market Price: ₹615.85
- Percentage Change: -2.79%
- Reasons: Shriram Finance also saw a significant drop, in line with the overall bearish sentiment in the financial services and broader market. Despite reporting a 9% jump in its standalone net profit and over 20% year-on-year growth in total revenue from operations for Q1 FY26, the stock witnessed profit-taking. The decline in its gross and net NPA ratios might have provided some comfort, but it wasn't enough to counter the negative market mood triggered by concerns over financial sector asset quality and persistent FII selling.
Bajaj Auto (Automobile)
- Current Market Price: ₹8,075.50
- Percentage Change: -2.57%
- Reasons: Bajaj Auto declined following comments from its management regarding the impact of China's rare earth magnet export curbs. The company expressed concerns about the unavailability of heavy rare earth magnets, which are crucial for its electric vehicle (EV) production, particularly for its popular Chetak and GoGo models. The management even suggested a potential "zero month" for EV production in August if the issue persists, leading to investor apprehension about future production volumes and profitability in its rapidly growing EV segment.
Tech Mahindra (Information Technology)
- Current Market Price: ₹1,461.90
- Percentage Change: -2.45%
- Reasons: Tech Mahindra, like other IT stocks, faced downward pressure due to a broader market sell-off and general weakness in the IT sector. This decline was influenced by factors such as continued foreign institutional investor (FII) selling in Indian equities and uncertain global cues. Despite some recent positive news related to its 3-month returns, the prevailing cautious sentiment in the market, coupled with broader sectoral corrections, contributed to its fall on July 25, 2025.
The sharp declines in major financial heavyweights like Bajaj Finance and Shriram Finance had a disproportionate impact on the overall market. This highlights the vulnerability of the financial services sector to factors like FII outflows and specific earnings disappointments, indicating that weakness in key large-cap sectors can significantly drag down broader indices.
Beyond direct stock movements, broader economic indicators and global developments played a crucial role in shaping the market's trajectory. RBI Governor Sanjay Malhotra stated that further interest rate cuts have "not been ruled out," indicating flexibility in the monetary policy committee's (MPC) "neutral phase". Future rate decisions will be "data driven," focusing primarily on the outlook for inflation and growth over the next 6 to 12 months.
The central bank had previously cut the repo rate by 50 basis points on 6th June to 5.5 per cent and shifted to a neutral stance. The RBI also announced a regulatory simplification initiative to consolidate around 3,000 existing rules and circulars into 33 thematic categories, aiming to reduce compliance burden and enhance clarity. Malhotra also flagged emerging risks in microfinance, indicating ongoing regulatory monitoring.
Regarding inflation numbers for June 2025:
- Headline Inflation (CPI): The year-on-year inflation rate based on the All India Consumer Price Index (CPI) for June 2025 was 2.10 %(Provisional). This marked a significant decline of 72 basis points from May 2025 and represents the lowest year-on-year inflation since January 2019.
- Food Inflation (CFPI): The year-on-year inflation rate based on the All India Consumer Food Price Index (CFPI) for June 2025 was -1.06 %(Provisional), also the lowest since January 2019.
This sharp decline in both headline and food inflation is mainly attributed to a favourable base effect and a reduction in prices of various food items, including vegetables, pulses, meat, fish, cereals, sugar, milk, and spices. Despite the immediate market downturn, the significant moderation of India's headline and food inflation to multi-year lows provides a crucial long-term positive signal. This gives the RBI greater flexibility in its monetary policy decisions, potentially allowing for future rate cuts or a sustained growth-supportive stance, which could eventually boost market confidence.
Crude oil prices showed mixed results on the day, with crude rising due to hopes of global trade deals. The Brent crude oil spot price is forecast to average $66 per barrel in the second half of 2025, nearly $5/b more than last month's forecast, primarily due to an increased geopolitical risk premium.
The EIA expects Brent crude oil prices to average $69/b this year. While domestic inflation is currently low, the rise in crude oil prices due to geopolitical risk premiums presents a potential future inflationary risk for India, a major oil importer. This could complicate the RBI's ability to maintain its growth-supportive stance or consider further rate cuts, as higher oil prices can feed into domestic costs and consumer prices, potentially limiting future monetary policy flexibility.
Globally, investor sentiment took a hit amid growing uncertainty over potential US Federal Reserve rate cuts. Recent robust US employment data reduced expectations for immediate Fed rate cuts before next week's central bank meeting, leading traders to adjust projections to fewer than two rate reductions this year. Wall Street hit new highs on Thursday, driven by technology sector gains, despite broader market weakness. The escalation of conflict over Iran's nuclear program in mid-June increased the geopolitical risk premium on oil prices.
Global trade uncertainty, particularly regarding the European Union's efforts to reach a deal with Washington to avert new US tariffs, also weighed on sentiment. The uncertainty surrounding US Federal Reserve rate cuts, driven by strong US employment data, directly impacts emerging markets like India.
A reduced likelihood of immediate Fed rate cuts implies a longer period of higher global interest rates, potentially making developed markets more attractive and leading to continued FII outflows from India, thus exacerbating domestic market weakness.
As the market navigates current uncertainties, several key economic data releases and corporate earnings announcements in the coming week will be crucial in determining the next directional bias.
Upcoming Economic Data:
- Index of Industrial Production (IIP): The All India Index of Industrial Production (IIP) for June 2025 is scheduled for release on Monday, 28th July 2025. This will provide insights into industrial growth and manufacturing activity.
- HSBC PMI Data: The final HSBC Manufacturing PMI for July will be released on Friday, 1st August, followed by the final Composite and Services PMIs on Tuesday, 5th August. These will offer a comprehensive view of private sector activity.
- Foreign Exchange Reserves: Updates on India's Foreign Exchange Reserves will be available on Friday, 1st August.
- Bank Loan and Deposit Growth: Data on year-on-year bank loan growth and deposit growth for July will also be released on Friday, 1st August.
- IMF World Economic Outlook Update: Globally, the International Monetary Fund (IMF) will release its World Economic Outlook Update on Monday, 29th July, which could provide fresh perspectives on global growth and inflation forecasts, impacting sentiment.
The convergence of a busy corporate earnings calendar and significant economic data releases will serve as critical catalysts. The market, currently in a "wait-and-watch" mode with low volatility (India VIX at 10), is poised for a potential directional breakout as these fresh fundamental cues provide clarity on corporate health and broader economic momentum.
Earnings Season Trends:
The earnings season continues to be a significant market driver, with a busy calendar for the coming week.
- Approximately 71 companies are expected to declare their Q1 FY26 results on Monday, 28th July, including major names like IndusInd Bank, NTPC Green, GAIL, BEL, Waaree Energies, Adani Total Gas, and Torrent Pharma.
- Around 31 companies, including Kotak Mahindra Bank and Macrotech Developers, are slated to announce results on Saturday, 26th July.
- Further results are expected in early August, with companies like ABB India, Federal Bank, Medplus Health Services, Marico, Sona BLW Precision Forgings, and Stove Kraft scheduled to report on 2nd and 4th August.
Friday, 25th July 2025, proved to be a challenging day for the Indian stock market, marked by a decisive downturn across the board.
- The Sensex and Nifty recorded significant losses, closing down 0.88 %and 0.90 %respectively, with broader mid- and small-cap indices experiencing even steeper declines.
- Persistent selling by Foreign Institutional Investors (FIIs) was a major drag on sentiment, although strong buying from Domestic Institutional Investors (DIIs) provided some cushioning, preventing a more severe market collapse.
- Sectoral performance was largely negative, with IT, Financials, and Auto sectors facing considerable pressure, while defensive sectors like Pharmaceuticals and Healthcare showed resilience.
- Key news included mixed corporate earnings, with some heavyweights disappointing while others posted strong results, alongside specific company-related developments.
- Despite the day's weakness, positive underlying economic data, such as India's inflation moderating to multi-year lows in June, could offer long-term comfort and provide the Reserve Bank of India with policy flexibility.
As we move into the coming week, investors are encouraged to remain informed and exercise caution. The market is likely to react to a busy schedule of corporate earnings announcements and crucial economic data releases, both domestic and global, which will provide further clarity on the market's direction. Staying abreast of these developments and maintaining a balanced, data-driven approach will be key in navigating the evolving market landscape.