Markets Open in Red; Broader Indices See Sharper Fall

The Indian stock market began July 25 on a weak note, with benchmark indices Nifty and Sensex falling sharply in early trade. This decline came despite record highs in US markets, as weak cues from Asian markets and trade uncertainty with the US weighed on investor sentiment.

At around 9:20 am, the Sensex dropped 425 points to 81,759, while the Nifty slipped nearly 140 points to 24,922. The broader markets were hit harder, with the Nifty Midcap 100 and Smallcap 100 indices facing deeper cuts, reflecting a cautious mood among retail and mid-sized investors.

Barring PSU banks, all major sectors were in the red, indicating a widespread sell-off across the market.

More Decliners Than Gainers

The market breadth was clearly negative. As of early trade:

• 924 stocks were advancing,

• 1,583 stocks were declining,

• 124 stocks remained unchanged.

This points to a broad-based correction, with selling pressure dominating most segments.

Recommended Read: ED raids impact Anil Ambani stocks: Reliance Power, Reliance Infrastructure drop 5%

Valuation Concerns and Trade Deal Worries Add to Pressure

Experts attribute the fall to a mix of high valuations and global uncertainties. Despite corporate results meeting expectations, investors are concerned about expensive stock prices.

“Though the Q1 earnings are broadly in line, it does not justify the premium valuation. India is trading at a 3-year high of 21x P/E, which is keeping markets under pressure,” said Vinod Nair, Head of Strategy at Geojit Financial Services.

Adding to the cautious sentiment is the uncertainty surrounding trade deals with the US, which has made investors more risk-averse in the short term.

While the market started on a weak footing today, all eyes will be on how it recovers in the coming sessions. Valuations, global cues, and progress on international trade discussions will likely determine the near-term direction.

Click here to explore other Nifty 50