Sensex, Nifty trade lower as IT, metal stocks lead decline; pharma, oil & gas cap downside

Laggards on the index included Kotak Mahindra Bank, Wipro, Bharti Airtel, Bharat Electronics, and Titan Company.

Benchmark indices Nifty and Sensex pared early losses but remained in the red on July 28, as selling in IT, metal, and banking stocks kept pressure on the markets. Buying in auto, pharma, and oil & gas names helped cap the downside, offering some relief after a weak start.

At about noon, the Sensex was down 115.56 points or 0.14 percent at 81,347.53, and the Nifty was down 23.45 points or 0.09 percent at 24,813.55. About 1458 shares advanced, 2012 shares declined, and 153 shares were unchanged

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"Equity markets extended their losing streak for the fourth straight week, dragged down by global trade jitters and lacklustre corporate earnings. The prolonged uncertainty around the trade deal, coupled with the absence of strong earnings surprises, has kept investor sentiment subdued, prompting a risk-off mood across sectors," Devarsh Vakil, Head of Prime Research at HDFC Securities, said.

Indian officials remain cautiously optimistic about the prospects of a trade agreement with the United States, even as uncertainty lingers with only a few days left before potential tariff hikes take effect. While recent deals with Japan and the European Union have raised hopes, the India-US pact continues to hang in the balance.

Also read: AI anxiety or cost cuts? Tech layoffs continue to surge as TCS sheds 12,000 jobs

At mid-day on July 28, markets remained under pressure with most NSE sectoral indices trading in the red. The Nifty Realty index was the worst performer, slipping 2.44 percent. Weakness was also visible in Private Banks and Metal stocks, with the Nifty Private Bank and Metal indices declining 1.08 percent and 0.93 percent, respectively. The broader market mirrored the trend, as the Nifty Midcap 100 and Smallcap 100 dipped 0.13 percent and 0.34 percent, respectively. The Nifty IT index was down 0.63 percent.

On the other hand, select defensives saw mild buying. Nifty Pharma and FMCG gained 0.60 percent and 0.57 percent, respectively. Oil & Gas and Energy indices also edged higher. Volatility ticked up, with India VIX rising 4.08 percent to 11.74, reflecting growing investor caution.

Among individual stocks, Kotak Mahindra slipped over 6 percent after the bank's net profit took a 7 percent tumble. Kotak Mahindra Bank reported a standalone net profit of Rs 3,282 crore for Q1 FY26, marking a 7 percent year-on-year decline from Rs 3,520 crore in the same period last year. Going ahead, international brokerage Bernstein believes that the surge in credit costs and soft asset quality will continue to weigh on Kotak Mahindra Bank’s valuation.

Read more: Dalmia Bharat: Volumes lag, margins shine in Q1FY26

Aadhar Housing Finance shares surged over 5 percent on July 28 to a record high of Rs 521 after promoter Blackstone’s fund restructuring triggered a mandatory open offer. The offer, priced at Rs 469.97 per share for a 25.82 percent stake worth Rs 5,335 crore, follows a July 25 SPA where the acquirer agreed to buy up to 64.14 percent from BCP Topco VII Fund at up to Rs 425 per share.

Central Depository Services (India) Ltd (CDSL) tanked 4 percent after the company reported a lacklustre set of earnings for the quarter ended June 30, 2025. Net profit declined 23.6 percent year-on-year to Rs 102.4 crore, down from Rs 134 crore in the same quarter last year. Revenue from operations remained largely flat, inching up just 0.6 percent to Rs 259 crore compared to Rs 257.4 crore in Q1FY25.

Technical View

"The Nifty fell 225 points on Friday, extending its losing streak to a fourth straight week — the first such stretch since October. On the charts, Friday’s candle tested support at the lower end of a falling channel. However, the index closing below its 50-day moving average signals that bears remain in control. The pressure is likely to persist unless the Nifty breaks above the 25,245–25,340 zone. Immediate support now lies at 24,700," Akshay Chinchalkar, Head of Research at Axis Securities, said.

Shriram Finance, Cipla, Hero MotoCorp, Tata Consumer Products, and Grasim were the top gainers on the Nifty. Laggards on the index included Kotak Mahindra Bank, Wipro, Bharti Airtel, Bharat Electronics, and Titan Company.