The Indian stock market today delivered a disappointing performance as both the Sensex and Nifty 50 posted significant declines by the closing bell of July 28 2025. This move was influenced by global economic headwinds, persistent uncertainties regarding trade negotiations, and continued foreign investor outflows. The BSE Sensex closed at 80891.02, shedding 572.07 points or 0.70%. The Nifty 50 ended at 24680.90, down 156.10 points or 0.63%. After a weak opening, both indices remained under pressure throughout the session. The market breadth was negative, reflecting a cautious investor mood amidst ongoing India-US trade deal uncertainties and mixed corporate results.

Sector Performance Highlights
The banking sector showed mixed trends. While ICICI Bank and HDFC Bank lent partial support to the indices, sharp losses were noted among several other bank stocks. Consolidation persisted amid expectations of further policy review and inflow trends shifting.

IT was among the worst-hit sectors as the segment faced pressure from global cues and recent job cuts in top companies. The IT index declined after news of a 2% workforce reduction at TCS and ongoing margin concerns flagged by analysts.

The auto sector recorded modest losses, weighed down by slowing growth in monthly sales and conservative FII flows. Broader market sentiment and muted rural demand continued to impact key players in this segment.

Pharma stocks provided some defensive support to the market, showing relative strength compared to other sectors. Select counters like Sun Pharma and Dr Reddy’s Laboratories managed to close with gains as investors sought shelter in defensives amid heightened volatility.

Top 5 Gainers
Hindustan Unilever (HUL) +2.1%
Asian Paints +1.7%
ICICI Bank +1.3%
Power Grid Corp +1.1%
HDFC Bank +0.9%

Top 5 Losers
Kotak Mahindra Bank -3.5%
Bajaj Finance -2.8%
Bharti Airtel -2.5%
Titan -2.0%
Tata Consultancy Services (TCS) -1.8%

FII/DII Net Flows
Foreign institutional investors (FII) continued their selling streak, withdrawing capital amid global risk aversion and strong US economic data. On Friday, FIIs sold a net Rs 1979 crore in Indian equities, while domestic institutional investors (DII) supported the market by buying a net Rs 2139 crore. This offset some of the global selling pressure, but was not enough to stem the overall slide.

Key Macro-Economic & Global Drivers
Uncertainty on India-US trade negotiations continued to weigh heavy on market mood. The much-discussed deal remained unresolved, leading to risk-off sentiment among foreign investors. The IT sector drag was exacerbated by a 2% workforce cut at TCS, reigniting concerns about slowing demand and margin compression in the segment. Global crude oil prices rose, supported by US-EU deals and positive movement on China tariffs, adding to imported inflation worries. FII outflows remain an overhang, with global funds withdrawing money from Indian equities due to attractive yields in developed markets and geopolitical uncertainties.

What to Watch Next
Eyes remain on the next phase of India-US trade talks, which could define near-term direction for the Indian stock market today. Investors will closely track Q1 FY26 corporate earnings, especially among IT, banking, and auto majors. FII/DII activity will continue to influence overall market flow and volatility. Macro signals from the US Federal Reserve and China’s policy decisions may impact foreign flows and sentiment.