The Indian stock market today witnessed intensified volatility and continued its downward momentum, reflecting heightened caution among investors. On July 25 2025, the BSE Sensex closed at 81463.09, plummeting by 721 points or 0.88 percent from the previous session. The NSE Nifty 50 ended the day at 24837, registering a drop of 225 points or 0.9 percent compared to the previous close. This marked the fourth consecutive weekly loss for both indices, the longest such streak in 2025, coinciding with a risk-off sentiment that affected broader markets as well. Equity benchmarks faced pressure from heavyweights such as the Bajaj twins (Bajaj Finance and Bajaj Finserv), Power Grid, Tech Mahindra, Infosys, and Trent. Conversely, Sun Pharma bucked the trend as the only major gainer in the large-cap space at the close.

Sector Performance Highlights
Banking: The banking sector outperformed most other segments, with the Nifty Bank index eking out a modest gain of nearly 0.5 percent over the week. ICICI Bank and HDFC Bank contributed positively, supporting the broader index amidst the negative market tone.

IT: Information technology stocks faced selling pressure, with the Nifty IT index sliding by 1.42 percent on July 25. Tech Mahindra and Infosys were among the notable laggards, contributing significantly to the sector’s underperformance. Weak global cues and muted results from sector leaders weighed on investor sentiment.

Auto: The auto segment also trended lower, as Nifty Auto finished with a loss of 1.27 percent. The index reflected the broader slowdown in consumption and rising input costs that constrained upward momentum.

Pharma: Pharma defied the downward trend, surging 0.54 percent and outperforming all other major indices. Sun Pharma led the pack, ending as the top Nifty gainer, while Cipla and other pharma stocks displayed resilience driven by defensive play during volatile sessions.

Top 5 Gainers
Sun Pharma +1.2%
ICICI Bank +0.9%
Cipla +0.8%
HDFC Life +0.7%
Hindalco +0.5%

Top 5 Losers
Bajaj Finance -4.7%
Bajaj Finserv -5.0%
Power Grid -3.4%
Tech Mahindra -2.9%
Infosys -2.0%

FII DII Net Flows
Foreign Institutional Investors (FII) remained net sellers on July 25 2025, extending their selling streak and contributing to the weakness in major indices. Domestic Institutional Investors (DII) absorbed some pressure but could not offset the broader risk-off trend. Exact daily net flow figures were unavailable at the time of writing, but continued FII outflows were a key drag on the market.

Key Macro-Economic and Global Drivers
The market was influenced by rising global volatility impacting Indian equities, with India VIX up 5.15 percent to 11.28. Indian inflation moderated to 2.10 percent in June 2025, and RBI’s repo rate remained steady at 5.5 percent. Mixed Q1 FY2026 earnings from large-cap IT and financials triggered profit-booking. Geopolitical tensions and sluggish Chinese growth dampened emerging market risk appetite, while the rupee showed mild depreciation against the dollar amid FII capital outflows.

What to Watch Next
Investors should monitor upcoming earnings from key index constituents, trends in FII and DII flows for indications of market direction, macroeconomic data releases especially GDP, inflation, and industrial output in August, and global market moves including central bank commentary from the US Federal Reserve and European Central Bank.