Sensex and Nifty News: Markets Tumble Amid Q1 Earnings Pressure and FII Outflows

Market Performance

Indian equity benchmarks Sensex and Nifty faced a sharp decline on Thursday, July 24, snapping their recent gains.

• Sensex closed at 82,184.17, down 542 points or 0.66%
• Nifty 50 ended at 25,062.10, falling 158 points or 0.63%
• Intraday lows: Sensex touched 82,047 and Nifty hit 25,018.70
• BSE Midcap index fell 0.43%
• BSE Smallcap index declined 0.50%
• Investor wealth dropped by ₹2 lakh crore, with BSE market capitalization slipping to ₹458 lakh crore from ₹460 lakh crore

Main News

The slump in markets was largely driven by:

1. Weak Q1 earnings from several major companies
2. Continued FII selling in cash markets
3. Pressure in heavyweight and IT stocks
4. Rising global crude prices
5. Concerns over global trade tensions

These factors combined to create broad-based selling across sectors, pulling down both indices.

Company Details: Nestle and Infosys Drag Sentiment

Several stocks contributed significantly to the market decline, with Nestle India, Trent, Tech Mahindra, Shriram Finance, and Coal India falling up to 5%.

Nestle India Q1 Result Highlights:

• Net Profit: ₹646.6 crore (↓13.4% YoY)
• Previous Year Profit: ₹747 crore
• Missed estimates due to higher raw material costs and manufacturing-related expenses

The weak performance affected broader FMCG sector sentiment, raising concerns over margin pressures.

Infosys Q1 Update:

• Despite an 8.7% YoY increase in net profit, Infosys reduced its full-year revenue forecast.
• This shift negatively impacted overall investor confidence in the IT space.

Revenue Pressure in IT Sector

The Nifty IT index fell nearly 2% amid heavy selling in midcap IT stocks:

• Persistent Systems dropped 9%
  • Q1 Revenue: $389.7 million (↑3.9% QoQ)
  • Growth driven by BFSI vertical (↑9%) and Hi-Tech sector (↑3.6%)
  • Decline of 1.9% in Healthcare vertical
• Coforge Ltd also fell 9%
• Infosys declined about 1%, impacting the sectoral index due to its heavy weightage (39.3%)

The fall in these key IT stocks contributed significantly to broader market weakness.

Foreign Institutional Selling Deepens

Foreign portfolio investors (FPIs) continued pulling funds from the Indian market:

• FII net selling on Wednesday stood at ₹4,209 crore
• Total outflows in July so far reached ₹26,395 crore

The persistent foreign capital outflow weighed on market liquidity and sentiment, especially in large-cap stocks.

Other Key Factors Behind the Market Fall

Lack of Fresh Triggers

• Despite a positive opening, markets failed to sustain gains due to profit booking and absence of new catalysts.

Rising Crude Oil Prices

• Brent crude climbed 0.31% to $68.72 per barrel
• Higher oil prices raise input costs and inflation risks, negatively affecting equities

Global Trade Uncertainty

• The EU’s proposal for 30% tariffs on $117 billion worth of US goods has raised fears of renewed trade disruptions
• India-US trade deal remains elusive, adding further investor anxiety

Summary of the Article

The Sensex and Nifty ended in the red on July 24, dragged by weak Q1 earnings from major companies like Nestle India, continued FII outflows, and concerns over rising crude prices and global trade tensions.

Heavy selling in IT and FMCG stocks also contributed to the downturn. With no major triggers in sight, the market struggled to hold gains and saw investors booking profits across sectors.

The session saw a loss of nearly ₹2 lakh crore in investor wealth, underlining the volatile nature of current market conditions.