Updated 25 July 2025 at 13:06 IST
Stock Market Today: Why BSE Sensex, Nifty50 Is Falling Despite Good News Of India-UK Trade Deal?
The Indian stock market saw a decline. The BSE Sensex fell by 582.98 points, or 0.71%, trading at 81,601.19. The previous close was 82,184.17, and during the day, the Sensex moved between a high of 82,069.51 and a low of 81,440.56. The Nifty 50 also dropped, trading 193.60 points lower at 24,868.50, down 0.77%.
Stock Market Today: Indian equity markets opened in the red and continued to drift lower through the day, despite a major trade agreement signed between India and the United Kingdom on Friday, July 25, 2025.
The sharp fall was led by weak earnings from financial and IT companies, alongside subdued global cues, which outweighed the positive sentiment from the India-UK Free Trade Agreement (FTA).
By 12:45 pm, the BSE Sensex had fallen by 582.98 points, or 0.71%, to 81,601.19. This was down from the previous close of 82,184.17. The index had touched a high of 82,069.51 earlier in the day, but weakness across sectors dragged it to an intraday low of 81,440.56.
Meanwhile, the Nifty 50 declined by 193.60 points, or 0.77%, and was trading at 24,868.50.
Bajaj Finance And Finserv Top Laggards
The market’s downward trajectory was largely driven by steep declines in heavyweights like Bajaj Finance, which slumped 5%, and Bajaj Finserv, which dropped more than 3.5%. Despite Bajaj Finance reporting a profit beat for the June quarter, concerns about asset quality in its MSME loan segment spooked investors.
Several brokerages raised red flags over stress in its loan book, making it the top Nifty 50 laggard of the day.
Top Gainers And Losers
Other major stocks like Infosys, Tata Motors, PowerGrid, TCS, Reliance Industries, ITC, HDFC Bank, ICICI Bank, and Kotak Mahindra Bank also remained in negative territory. Consumer major Nestle India continued its downtrend, falling another 1% after slipping over 5% on Thursday due to a lower-than-expected quarterly profit, impacted by rising input costs.
Only a few stocks showed resilience. Sun Pharma, Bharti Airtel, and UltraTech Cement were among the gainers. SBI Life Insurance bucked the broader trend with a 2.5% rise after strong earnings led by growth in policy renewals. Trident climbed 4.7%, lifted by improved quarterly profit and optimism around the textile sector following the India-UK FTA.
Indian Energy Exchange, which had plunged 30% on Thursday due to concerns over new pricing competition, rebounded 9% on Friday, supported by better-than-expected profits.
Sectoral Indices
The sectoral picture painted a mostly gloomy outlook. Indices like Nifty Auto, IT, Bank, Energy, Media, PSU Bank, Oil & Gas, and Consumer Durables all fell sharply. Nifty Media was the biggest loser, down over 2%. Only the Nifty Pharma and Healthcare indices posted modest gains, showing some strength in defensives amid the broader market sell-off.
Market breadth remained decisively negative. Out of 2,832 stocks traded on the BSE, only 547 advanced, while 2,201 declined and 84 remained unchanged. While 34 stocks touched a 52-week high, 29 hit 52-week lows. Stocks hitting lower circuits (46) outnumbered those at upper circuits (40), underlining the bearish sentiment.
While the India-UK trade deal, signed during Prime Minister Narendra Modi’s visit to London, is expected to boost sectors like textiles, whisky, and automobiles through reduced tariffs and expanded market access, analysts remain cautious. “Despite the FTA announcement, weak earnings from Bajaj Finance, IT and consumer stocks have made investors nervous,” Hardik Matalia, an analyst at Choice Equity Broking, told Reuters.
Other Factors Affecting Market
Adding to the nervousness are weak global cues. The upcoming US-China trade talks in Sweden and uncertainty around US-India negotiations, especially concerning Russian oil supply, are creating a wait-and-watch sentiment.
With no major fiscal stimulus in sight and the next monetary policy meeting scheduled for August 6, traders are preparing for a weak close to the week. This could mark the fourth consecutive weekly decline for Indian equities.
In Asian markets, sentiment was also muted. Japan’s Nikkei 225 fell 0.79%, Singapore’s Straits Times declined 0.48%, Hong Kong’s Hang Seng dropped 1.19%, and Taiwan’s Weighted Index slipped 0.08%. South Korea’s KOSPI was the only outlier, managing to gain 0.35%.
Published By : Anubhav Maurya
Published On: 25 July 2025 at 13:03 IST