Stock markets declined for the third day on Monday (July 28, 2025), with benchmark indices Sensex and Nifty tumbling nearly 1% following heavy selling in Kotak Mahindra Bank and uncertainty related to the India-U.S. trade deal.

The 30-share BSE Sensex tanked 572.07 points or 0.70%, to settle at 80,891.02. During the day, it slumped 686.65 points or 0.84%, to 80,776.44.

The 50-share NSE Nifty declined 156.10 points or 0.63%, to 24,680.90.

From the Sensex firms, Kotak Mahindra Bank tumbled 7.31% after the company reported a consolidated net profit of ₹4,472 crore for the June quarter and flagged stress on the retail commercial vehicle portfolio due to adverse macroeconomic conditions.

The profit in the year-ago period was ₹7,448 crore, but it had included gains of over ₹3,000 crore on its stake sale in the general insurance arm, while the net profit for the March quarter stood at ₹4,933 crore.

Bajaj Finance, Bharti Airtel, Titan, Tata Consultancy Services, HCL Tech and State Bank of India were also among the laggards.

However, Hindustan Unilever, Asian Paints, ICICI Bank, Power Grid, HDFC Bank and ITC were the gainers.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,979.96 crore on Friday (July 25, 2025), according to exchange data.

In Asian markets, Japan’s Nikkei 225 index settled lower while South Korea’s Kospi, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng ended in positive territory.

Markets in Europe were trading in the green. The U.S. markets ended higher on Friday (July 25, 2025).

Global oil benchmark Brent crude climbed 0.91% to $69.05 a barrel.

On Friday (July 25, 2025), the Sensex tanked 721.08 points or 0.88%, to settle at over a month’s low of 81,463.09. The Nifty dropped 225.10 points or 0.90%, to a month’s low of 24,837.

Equity benchmark indices Sensex and Nifty tumbled in early trade on Friday (July 25, 2025) dragged down by Bajaj Finance and persistent foreign fund outflows.

A weak trend in Asian markets also dented investors’ sentiment.

The 30-share BSE Sensex dropped 407.45 points to 81,776.72 in early trade. The 50-share NSE Nifty declined 144.3 points to 24,917.80.

From the Sensex firms, Bajaj Finance tanked nearly 6% post its June quarter earnings announcement. Bajaj Finserv fell by over 4 per cent.

Tata Steel, Hindustan Unilever, Mahindra & Mahindra, UltraTech Cement, Power Grid and Maruti were also among the laggards.

However, Eternal, ICICI Bank, HCL Tech and State Bank of India were the gainers.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,133.69 crore on Thursday (July 24, 2025), according to exchange data. However, Domestic Institutional Investors (DIIs) bought stocks worth ₹2,617.14 crore.

“The near-term market construct has turned weak. Sustained FII selling of ₹11,572 crore in the last four trading days will weigh on the market,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

In Asian markets, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng quoted lower while South Korea’s Kospi traded in positive territory.

The U.S. markets ended on a mixed note on Thursday (July 24, 2025).

India and the U.K. signed a landmark free trade agreement on Thursday (July 24, 2025), which, starting next year, will see 99 per cent of Indian exports enter the U.K. duty-free, while reducing tariffs on British products such as cars and whisky.

The deal, which comes days ahead of the U.S. moratorium on higher tariffs coming to an end, aims to double the USD 56 billion trade between the world’s fifth and sixth largest economies by 2030.

“The India-UK FTA, which is India’s first comprehensive trade agreement with a major developed country, has two implications from the market perspective. One, this FTA will significantly boost trade between both countries, which will be seen as a positive by the market. Two, this FTA along with many other FTAs signed by India with other countries, projects India as a nation committed to free trade. The fact that this FTA has come during a time of tariff wars is commendable, and hopefully this will improve India’s chances of striking a fair-trade deal with the U.S.,” Vijayakumar added.

Sectors like textiles, leather, food processing, automobiles, pharmaceuticals and gems and jewellery, which are expected to benefit from the FTA, will be on the market radar, he said.

Global oil benchmark Brent crude climbed 0.39% to $69.45 a barrel.

On Thursday, the Sensex tanked 542.47 points or 0.66% to settle at 82,184.17. The Nifty dropped 157.80 points or 0.63% to 25,062.10.