Today was not a good day in the Indian stock market. In Friday trading, both benchmark indices Sensex and Nifty recorded a major decline. The 30 -share Sensex slipped around 800 points, while the Nifty also fell below 25,000 levels. Several shares also saw selling pressure during the market improvement. The shares of several big companies declined by up to 5 percent.
Especially after the quarterly results of Bajaj Finance, banking and financial shares declined. Not only banking, the Nifty Auto Index also declined by 1.3 percent. In addition, several other regional indices like PSU bank, IT, metal also saw a decline. The BSE Midcap index and the smallcap index also declined by 1.3 percent and 1.7 percent respectively. The market capitalization of listed companies in BSE has come down by Rs 4.75 lakh crore to Rs 453.35 lakh crore.
Due to this decline in the stock market
Delay in trade agreement between India and America
There is uncertainty between India and the US about the trade agreement. The US has finalized the agreement with several countries like Japan, Indonesia, Vietnam, Philippines. Negotiations with India are still going on and here, the 1st August deadline is also approaching. Investors are worried about this. Until the official announcement of the tariff is made, the investors will be under pressure.
Pressure on banking and financial shares
Banking and financial shares declined the biggest decline during trading in the stock market. The Nifty Financial Services Index recorded a decline of 1 percent and Nifty Bank by more than 600 points. Bajaj Group shares were among the highest falling stocks in Nifty 50, with 5.5 percent and 4.5 percent declined respectively. Union Bank, Indian Bank and Canara Bank suffered the most loss in Nifty Bank, which fell more than 3 percent.
Selling of foreign investors
Selling of foreign investors is also a major reason for this decline in the market. In the last four days, foreign investors have withdrawn around Rs 11,500 crore from Indian shares in the cash section. VK Vijaykumar, the main investment strategist of Geojit Investments, had said before the market opened that the selling of Rs 11,572 crore continuously by foreign institutional investors in the last four business days would have put pressure on the market.
Dull results of first quarter
Investors’ perception has weakened due to the weak results of the first quarter of FY 2026. Some companies have met expectations, while many companies have missed their targets. Especially, companies in IT and financial sector. Vigilant comments of management have also affected market notion.
