The Indian stock market closed down on Friday (July 24) in the last trading session of the week amid weak signals from global markets. Prior to August 1, uncertainty over the Indo-US trade agreement affected the market notion. At the same time, after the quarterly results, the market declined due to a decline in select shares. Also, investors are reviewing the new trade agreement with Britain. The 30 -share BSE Sensex opened 366 points or 0.45 percent to 81,818. Later the index declined further deepened. Finally it closed at 81,463.09 with a decline of 721.08 points or 0.88%.
The National Stock Exchange (NSE )’s Nifty-50 index opened 116 points or 0.46 percent to 24,946 below 25,000 points. It eventually closed down 225 points or 0.90 percent to close at 24,837. In addition, it fell below the support level of 25,000.
Top disadvantage and profit
Among the Sensex companies, Bajaj Finance, Power Grid, Infosys, Tech Mahindra, Bajaj Finserv, Trend, Tata Motors, NTPC, Tata Steel, Maruti, Adani Ports, SBI, HDL Tech, L&T and Hindustan Unilever were the major declining stocks. On the other hand, only Sun Pharma and Bharti Airtel managed to stay ahead. In broad markets, the Nifty Midcap index was 1.61 percent and the Nifty Smallcap index below 2.1 percent.
On the regional front, selling was observed in all areas except Nifty Pharma (0.54 percent increase). Nifty Auto 1.27 percent, Nifty IT 1.42 percent, Nifty Metals 1.64 percent, Nifty Realty 0.99 percent, Nifty Financial Services 0.91 percent and Nifty FMCG closed down by 0.9 percent.
Stock market: Reason for decline on Friday?
India has signed a free trade agreement with Britain. However, the market focus is entirely on a possible trade agreement between India and the US. Currently, there is a round of speculation. But there has been no concrete progress before the tariff deadline of 1 August. This is affecting the market perception.
The deadline of Trump Tariff is now just a week away. In such a situation, the concerns of investors have increased. The market is waiting for an agreement that can help avoid the increasing rates of 26 percent tariffs. Lack of any kind of delay or clarity can cause market instability in the near future.
– Decline in IT and FMCG stocks
Following the disappointing quarterly results of major companies, the IT sector had already weakened the market notion. Meanwhile, the FMCG sector increased the pressure. Industry veteran Nestle India recorded a 13 percent decline in its profit from year to year, disappointing investors. It fell from last year’s ₹ 746.6 crore to ₹ 646.6 crore. The comprehensive Nifty FMCG index fell 0.6 percent to close at a low of 54,645. Nestle India shares fell by 1.87 percent to close at ₹ 2,277.
-Selling of foreign investors
Foreign investors are continuing pure selling in Indian shares. Analysts believe that the assessment is largely responsible for changes in selling from four consecutive months net purchases in July, compared to dull income. Indian markets are currently trading at premium compared to their counterpart markets, making them less attractive in short term. It is also worth noting that the smallcap segment has more selling, where the evaluation has increased once again. D-star experts hope that this trend will continue in the near future.
What is the condition of global markets?
On Friday, Asian markets saw a decline. Japan’s Nikkei dropped 0.55% and the topics index 0.73%. Australia’s ASX 200 also fell 0.51%. However, South Korea’s cospy climbed 0.14%. In the US last week, unemployment claims declined by 4,000 to 2.17 lakhs, while estimates were 2.27 lakhs. This is the sixth consecutive week when unemployment claims have declined. However, the current unemployment claims increased to 19.55 lakhs, the second highest level since November 2021.
Meanwhile, S&P Global US Composite PMI reached 54.6 in July, which was 52.9 in June. This is the strongest expansion ever this year. The service sector saw a rapid increase in the service sector and the manufacturing sector led to a slight improvement. On Wall Street, S&P 500 and Nasdaq set new records. S&P 500 rose 0.07% to 6,363.35 and Nasdaq climbed 0.18% to close at 21,057.96. Dow Jones fell 0.7% to close at 44,693.91.
