Sensex and Nifty News: Benchmark Indices Slip for 3rd Straight Week, Market Cap Drops by ₹3 Lakh Crore

Market Performance

On Friday, July 18, Indian stock markets declined for a third straight week, with both Sensex and Nifty closing lower amid sustained bearish investor sentiment.

• Sensex declined by 502 points, or 0.61%, closing at 81,757.73
• Nifty 50 fell by 143 points, or 0.57%, to settle at 24,968.40

Mid and Small Cap Index Performance:

• BSE Midcap Index: Dropped 0.62%
• BSE Smallcap Index: Fell 0.64%

Broader market selling eroded investor wealth, as mid and small caps also slipped.

Market Capitalization Impact:

• Total loss: ₹3 lakh crore
• Market cap of BSE-listed companies fell to ₹458 lakh crore, from ₹461 lakh crore a day earlier

Main News

The decline in the Sensex and Nifty was specifically fueled by four main factors: weak earnings data from major companies, ongoing foreign fund outflows, unresolved global trade uncertainties—especially regarding the India-US deal—and growing concerns about elevated stock valuations.

1. Weak Q1 Earnings Dampen Sentiment

Initial Q1 results from major companies, such as Axis Bank, TCS, and HCLTech, disappointed and weighed on investor sentiment.

• Earnings from Axis Bank, TCS, and HCLTech were below expectations
• Axis Bank reported a 3% drop in consolidated net profit in Q1, impacting broader banking sentiment

2. India-US Trade Deal Uncertainty

The anticipated trade agreement between India and the US remains elusive. Tariff-related ambiguities have made investors cautious.

• India is seeking better tariff terms than Indonesia and Vietnam
• Lack of clarity on trade terms ahead of the August 1 deadline is causing hesitation

3. Stretched Valuations

• Current Nifty PE Ratio: 22.6
• Two-year average PE: 22.3

Elevated Nifty valuations and weak earnings heightened investor concerns.

4. Foreign Portfolio Investor (FPI) Selling Continues

Continued FPI selling, totaling ₹17,330 crore in July, dragged markets lower despite local support.

• July FPI equity sales (cash segment): ₹17,330 crore
• Thursday alone saw FPI sell-off worth ₹3,694.31 crore

5. Global Market Pressure and Rising Volatility

Negative cues from Asian markets, increased volatility, and global uncertainties spurred further caution among investors.

• India VIX increased nearly 4%, reaching 11.62

Company Details

Axis Bank

• Q1 Net Profit: ₹6,243.72 crore (- 3%)
• Stock fell over 6%
• Weak earnings impacted the Nifty Bank Index, which slipped more than 1%
• 11 of the 12 bank stocks on the index closed in the red

Other major laggards included:

• SBI Life Insurance
• Shriram Finance
• HDFC Life
• Kotak Mahindra Bank

Revenue and Financial Highlights

Axis Bank Q1 Financial Summary:

• Consolidated Net Profit: ₹6,243.72 crore (- 3%)
• Impacted by changes in NPA classification and loan upgrade policy

Summary of the Article

Sensex and Nifty dropped for a third straight week on July 18, erasing ₹3 lakh crore in investor wealth. Weak Q1 earnings, ongoing FPI outflows, global trade uncertainties, and high valuations fueled broad market losses.

Axis Bank's below-par Q1 results worsened banking sector losses, while negative global cues and a jump in India VIX signaled rising investor caution.

The week highlighted volatility and profit-taking, especially in mid and small caps, as lackluster earnings and global uncertainty sustained market pressure.