Markets witnessed sharp profitbooking on Thursday, with benchmark-Indices who reverse early profit to close considerably lower, because disappointing quarterly profits of IT-Majors caused a sector-wide sale that overshaded the positive PMI data and worldwide signals.
The Sesex fell 542.47 points or 0.66 percent to close to 82,184.17, while the Nifty fell 157.80 points or 0.63 percent to settle at 25,062.10. Despite the indices that opened in a strong tone, the decline came, with the handy highlight of 25,246 in early trade before he sliding to an intraday depot of 25,018.
Sector Dia
The IT sector was afraid of sales pressure, with the handy IT index that tumbles more than 2 percent after silly Q1 FY26 results from large technology companies. Among individual shares, Cϙforge crashed 9 percent, persistent systems fell by 8 percent, while Infosys fell 1 percent, weigh heavily on the wider market sentiment.
“De Indiase aandelen zijn vandaag sterk gevallen en keerde eerdere winst om, ondanks positieve wereldwijde aanwijzingen. Het eerste optimisme rond de India-UK vrije handelsovereenkomst maakte plaats voor voorzichtigheid naarmate de aandacht stevig verschoof naar de inkomsten. De IT- en FMCG-sectoren sleepten grote cap-aandelen naar beneden vanwege de onderworpen Q1-prestaties,” zei Vin Nair, hoofd van onderzoeksonderzoek bij Geojit Ltd.
Sectoral performance remained mixed during the session. While PSU banks, health care and pharmaceutical shares performed better with the PSU Bank Index that collects more than 1.40 percent, including construction, consumer goods, energy and oil and gas. The Nifty Realty index also came under pressure and was closed among the top sectoral losers.
The market width was definitely negative, with 2,467 shares that fell against 1,523 progress on the BSE. In the Nifty 500 universe, no fewer than 326 shares ended in the red, reflection of wide weakness between segments. The wider indices also witnessed the sales pressure, with the handy midcap 100 that dropped 0.58 percent and the SmallCap 100 considerably underperforming by tumbling 1.09 percent.
“Nowadays the benchmark -indices experienced profit booking at higher levels. Under the sectors, the IT index lost the most and corrected 2.20 percent, while despite a weak market sentiment, the PSU Bank Index yielded more than 1.40 percent,” noted Shrikant Chouhan, head of stock research on Kotak Securities.
Profit and losers
Under the individual Nifty 50 shares, Eternal emerged as the best profit, and rose 3.44 percent to close to £ 312.45, followed by Dr. Laboratories. Reddy, who won 1.72 percent to £ 1,268.90. Tata Motors went to £ 701.30, while Tata consumer products rose by 0.98 percent to £ 1,073.00 and Cipla 0.87 percent won to £ 1,486.30.
On the losing side, Nestle India led the decline and 5.57 percent fell to £ 2,316.00, while Trent dropped 3.94 percent to £ 5,148.00. Tech Mahindra fell by 3.26 percent to £ 1,496.20, Shriram Finance fell by 3.17 percent to £ 633.30 and the relevance industry fell 1.53 percent to £ 1.402.80.
The macro -economic background remained supportive with robust production activity data. “The latest data unveiled a robust production activity – the HSBC India Manufacturing PMI rose to 59.2 in July 2025 from 58.4 in June – while the Services PMI closed from 60.4 to 59.4, which reflected a modest delay of the growth of services,” said Ashika.
Rupid retreats
Currency markets saw mixed action when the rupid opened strongly with 0.30 percent profits, but gave up that profit during the session. “Rupee opened strongly with 0.30 percent profit supported by a weaker dollar index near 97.30 in the early trade. However, when the Dollar Index Intraday began to recover, the rupee gave up its profits and settled almost 86.40 from the day of the day High of 86.25,” said LKPEXTIES.
The golden prizes fell in the midst of a lower demand for safe haven after announcements of a new trade agreement. “Gold traded weak as trade agreements between the US and Japan, and potential agreements with the EU, weighed on the demand for safe haven. Gold has fallen by around $ 60 since yesterday, while MCX Gold almost £ 1,500 fell to £ 98,600,” Trivedi added.
Technical analysts emphasized important resistance and support levels for the market. “The Nifty slid lower away when it was confronted with stiff resistance around the zone of 25,250-25,260. On the other hand, the support remains intact at 24,900; a decisive break below this level could cause a correction in the market,” Rupak de, Senior Technical Analyst at LKP Securities.
“Although the income of the first quarter are broadly in line, it does not justify the premium valuation; India is traded at a peak of 3 years of 21x p/e,” warned Nair, with attention to valuation problems in the midst of the profit season.
Looking ahead, market participants remain careful when shifting the focus to the US Federal Reserve policy decision next week and ongoing wins announcements. “Market participants remain careful prior to the US Federal Reserve policy decision next week, which is expected to give further direction,” noted TriveDi, which suggests that continuous volatility in the short term in the short term, since global monetary policy signals and the development of domestic income continue to stimulate market sentiment.
Published July 24, 2025
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