Sensex and Nifty News: Benchmark Indices Fall Over 1,400 Points in 4 Days – What’s Behind the Slide?

Market Performance

The Indian stock market remained on a declining path for the fourth consecutive day on Monday, July 14.

• Sensex closed at 82,253.46, down by 247 points or 0.30%
• Nifty 50 ended at 25,082.30, falling 68 points or 0.27%

4-Day Slide Summary:

• Sensex lost 1,459 points (down 1.74%)
• Nifty 50 declined 1.72%, slipping below the 25,100 mark

Despite this, the BSE Midcap and Smallcap indices showed resilience:

• The midcap index rose by 0.67%
• Smallcap index climbed 0.57%

Main News

1. Global Trade Tensions and Tariff Concerns

One of the key triggers behind the stock market decline is the rising tension surrounding global trade.

• US President Donald Trump announced a 35% tariff on imports from Canada
• An additional 30% tariff will apply to goods from Mexico and the EU starting August 1
• Reports indicate a possible interim trade deal with India, potentially easing tariffs to below 20%

Global trade uncertainty has spooked markets, and despite hopes of a trade agreement, external pressures are weighing on investor sentiment.

2. Shift from Large-Caps to Mid and Small-Caps

Investor focus appears to be shifting:

• Retail investors are increasingly preferring mid- and small-cap stocks
• These segments are being viewed as opportunities for better earnings recovery
• Broader markets are outperforming benchmarks

The BSE Midcap and Smallcap indices recorded notable gains even as large-caps struggled.

3. Foreign Capital Outflows Continue

Foreign Portfolio Investors have turned net sellers after months of sustained buying.

• Over ₹10,000 crores worth of equities sold in July (till July 11)
• Selling pressure in large-cap stocks is evident due to FPIs' significant holdings

This withdrawal of foreign funds is adding pressure on the Sensex and Nifty.

4. Valuation Concerns Amid Earnings Season

Valuations are a growing concern:

• Nifty 50's PE ratio currently stands at 22.6
• This is higher than the one-year average of 22.2
• Investors are cautious ahead of a mixed Q1 earnings season

With recovery expectations now pushed beyond September, stretched valuations are making traders wary.

Company Details and Sectoral Highlights

Key Index Movements on Monday

• Nifty Midcap 100: + 410 points to 59,053
• Nifty Bank: + 11 points to 56,765

Sectoral Performance

• Nifty IT: Ended as the worst-performing sector
• Nifty Realty: Led sectoral gains

Noteworthy Stock Moves

• Avenue Supermarts: Turned negative after weak Q1 earnings
• VIP Industries: + 5% after 32% stake acquisition by Multiples Alternate Asset Management
• ONGC: Gained 1% as Brent crude crossed $71/barrel
• Laurus Labs, Granules India, Mankind Pharma: Led midcap pharma rally
• Eternal: Top performer among new-age stocks
• Bosch: + 15% so far in July
• Hindustan Zinc: Rose on silver prices hitting ₹1.14 lakh/kg
• Ola Electric: + 20%, highest daily gain since Q1 results
• MTNL: Rose after the government approved non-auction-based asset sales
• AU Small Finance Bank: Fell 2%

Summary of the Article

The Indian stock market has undergone a sustained decline over the last four sessions, with the Sensex falling 1,459 points and the Nifty breaching the 25,100 level. While large-caps suffered, mid- and small-cap segments outperformed, highlighting changing investor trends.

Key factors driving the market down include:

• Heightened global trade tensions
• Shift of capital from large-cap to mid- and small-caps
• Outflow of foreign funds
• Stretched valuations amid an uncertain earnings outlook

Though broader market participation remains high, Sensex and Nifty News continue to reflect cautious investor sentiment as the market navigates through global and domestic uncertainties.