Sensex down nearly 200 pts, Nifty below 25,200 as IT, banks lead decline; all eyes on likely India-UK FTA

Laggards on the index included Trent, Hero MotoCorp, Kotak Mahindra Bank, UltraTech Cement, and Infosys.

Benchmark indices Nifty and Sensex opened on a subdued note on July 24, failing to draw strength from upbeat global cues and optimism around a likely India-UK trade deal. This came despite Asian markets rallying for a sixth straight session and Wall Street inching higher on hopes of further US-led trade agreements after its recent pact with Japan. IT stocks edged dragged in the opening trade and the broader markets also mirrored weak trends.

At about 9:30 am, the Sensex was down 170.55 points or 0.21 percent at 82,556.09, and the Nifty was down 30.65 points or 0.12 percent at 25,189.25. About 1592 shares advanced, 1208 shares declined, and 131 shares remained unchanged.

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Progress on finalising the India-UK free trade agreement has added to the positive market sentiment. Ongoing developments in global trade negotiations are expected to ease near-term trade tensions and support market stability. While high valuations remain a concern, current market strength suggests room for a near-term earnings rebound. That said, the pace and sustainability of this recovery will be key to determining the market’s direction going forward, Vinod Nair of Geojit Investments said.

Markets opened mixed on Thursday, July 24, with sectoral indices showing a scattered trend. Nifty Pharma led the gains, rising 0.65 percent, followed by Nifty Metal and Nifty Auto, up 0.61 percent and 0.30 percent, respectively. On the other hand, Nifty IT was the biggest drag, slipping 1.15 percent. Banking stocks were under pressure, with Nifty Bank and Nifty Private Bank down 0.28 percent and 0.39 percent, respectively. The broader indices also traded weak, with the Nifty Midcap 100 down 0.33 percent and the Nifty Smallcap 100 lower by 0.14 percent. Volatility, as measured by India VIX, remained flat at 10.52.
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Among individual stocks, Infosys was down 1 percent despite a slew of brokerages reiterating their bullishness on the IT services giant. Infosys reported an 8.7 percent year-on-year rise in consolidated net profit to Rs 6,921 crore for the quarter ended June 30, 2025, beating Street expectations. Revenue for the fiscal first quarter grew 7.5 percent to Rs 42,279 crore.

Shares of Dr Reddy's Laboratories gained over 2 percent after its consolidated net profit increased nearly 2 percent year-on-year to Rs 1,418 crore during the June quarter. Revenue increased 11.4 percent to Rs 8,545 crore for the period under review. Following Q1, Jefferies, CLSA, and Morgan Stanley dished out bearish calls on the stock.

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FMCG major Tata Consumer Products rose over a percent after it reported a net profit of Rs 334 crore for the first quarter of the financial year 2026. This marks a 15 percent on-year jump from the Rs 290 crore net profit reported in the corresponding quarter of the previous financial year. Nomura and Morgan Stanley remain bullish on the stock.

Technical view

Yesterday's close underscores the importance of the 24,900–25,000 support zone in shaping the next directional move. The area between 25,200–25,320 has consistently acted as a stiff resistance cluster throughout the month, with the index now hovering near a key swing high. However, as long as the index maintains levels above 24,800, the probability of buying interest emerging on dips remains favorable. A decisive close above 25,250 would be instrumental in negating the existing bearish undertone and reviving broader bullish sentiment.

Dr Reddy's, Tata Motors, Eternal, Tata Steel, and Tata Consumer Products were the top gainers on the Nifty. Laggards on the index included Trent, Hero MotoCorp, Kotak Mahindra Bank, UltraTech Cement, and Infosys.

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