Sensex dips, Nifty below 25,100 as IT stocks drag the market. Midcaps shine while global trade tensions rise
The Indian stock market opens the week on a weaker note. Both major benchmark indices, Sensex and Nifty 50, trade in negative territory. Sensex drops by more than 230 points and trades near 82,269, while Nifty 50 falls below the 25,100 mark, hovering close to 25,082.
This decline follows a volatile previous session where the Sensex lost around 690 points and the Nifty fell over 200 points. Investors seem cautious as they assess earnings, global signals, and regulatory changes.
IT Sector Drags Market Lower
One of the main reasons for today’s weak performance is the continued decline in the information technology sector. The Nifty IT index falls by nearly 1%, following a 4% decline the previous week. Major tech firms such as TCS, Infosys, Wipro, HCL Tech, and Tech Mahindra trade lower by more than 1% each.
TCS’s recent earnings fail to meet market expectations, and this has affected the entire IT pack. Also, global trade tensions and worries about higher tariffs on tech-related goods add to the selling pressure.
Midcap and Smallcap Stocks Show Strength
Despite the fall in large-cap stocks, mid-cap and small-cap shares trade in the green. Midcap and smallcap indices gain between 0.4% and 0.7%, indicating that investors are still interested in smaller companies with strong growth potential.
Several stocks in the BSE small-cap index rose more than 15%, showing that selective buying continues even in a weak market. Stocks in the power, metals, and PSU banking sectors are performing well and are up between 0.5% and 1%.
Market Volatility and Derivatives Data
The India Volatility Index (India VIX), which measures fear in the market, rises by 3% to 4%. This suggests that traders expect large price swings in the near term. Derivatives data from the Nifty futures and options market show that July contracts trade with a small premium of around 59 points. However, open interest does not increase much, which indicates a lack of conviction among traders.
The expected trading range for Nifty is between 24,600 and 25,600, with key support at 24,900 and resistance near 25,400. Futures and options volumes fall by almost 20%, possibly due to recent regulatory scrutiny.
Earnings Season in Focus
The earnings season is now in full swing. Companies from the IT sector are releasing their first-quarter results this week. Infosys, Wipro, HCL Technologies, and Tech Mahindra are all expected to announce their numbers. Investors are watching these reports closely because weak results from one company can affect the whole sector.
Last week, TCS failed to meet expectations, and its stock dropped sharply. Now, the market is waiting to see if other IT firms can perform better and lift sentiment.
IPO Market and Corporate Developments
India’s IPO market remains active. Anthem Biosciences launches its IPO today, aiming to raise ₹3,395 crore. The company operates in the pharmaceutical and biotech space, and investor interest is expected to be high. Besides Anthem, smaller firms like Smarten Power Systems, Travel Food Services, and Chemkar are listing on SME exchanges this week. These new listings show that companies remain confident in India’s capital markets despite recent market volatility.
Some major corporate announcements also influence trading today. Reliance Infrastructure gains around 4% after a credit rating upgrade. Construction firm NCC wins a metro project worth over ₹2,200 crore in Mumbai, which lifts its stock. Meanwhile, VIP Industries trades lower by more than 5% after a block deal involving the promoter stake sale. These moves show how company-specific news can impact stock prices, even in a weak broader market.
Global Trade Tensions Affect Market Mood
The market also reacts to global developments. The United States announces new tariffs on goods imported from Europe and Mexico, starting from August 1. This decision raises concerns about a possible global trade war. Investors fear that increased tariffs could slow down economic growth and reduce company profits. These tensions add to the cautious mood in Indian markets and push investors to book profits.
Another factor affecting sentiment is the continued selling by foreign institutional investors (FIIs). On Friday, FIIs sell shares worth over ₹5,100 crore. This heavy outflow puts pressure on the market, especially large-cap stocks that rely heavily on foreign money. If these outflows continue, Indian markets may find it hard to rise in the near term.
Important Dates and Technical Levels
Market experts are also closely watching the date of July 15. Many technical analysts have marked this date as a possible turning point. A breakout or breakdown could occur depending on how stocks perform leading up to it. With the current weakness, a lot depends on the next few trading sessions.
From a technical point of view, Nifty has support near 24,900. If this level breaks, a sharper fall may follow. On the upside, 25,400 is seen as a strong resistance level. Crossing this mark could lead to a short-term rally. Traders are expected to remain cautious until the market gives a clear direction.
Outlook
Today’s stock market action shows caution and weakness. Key indices like Sensex and Nifty trade lower as heavyweights from the IT sector drag the market down. Midcap and smallcap stocks provide some relief, with many of them trading higher. Earnings announcements, especially from the IT sector, remain the key focus for the week. Investors also react to global news like new U.S. tariffs and continued foreign investor selling.
India’s primary market remains active with new IPOs, but volatility is high. The next few days could be crucial for market direction, especially with important technical levels coming into play. For now, the market remains in a wait-and-watch mode, reacting to earnings, global trade headlines, and FII activity.
