Sensex tumbles 580 pts, Nifty below 24,900 as auto, metals lead decline; India VIX surges 6%

Laggards on the index included Bajaj Finance, Bajaj Finserv, Shriram Finance, Bajaj Auto, and IndusInd Bank.

Benchmark indices Nifty and Sensex dropped sharply in morning trade on July 25, dragged down by weak cues from Asian markets despite record closes on Wall Street. Barring pharma, all major sectors slipped into the red, with the broader market taking a heavier hit.

At about 10:30 am, the Sensex was down 578 points or 0.7 percent at 81,606, and the Nifty was down 194.5 points or 0.78 percent at 24,867. About 577 shares advanced, 2,045 shares declined, and 86 shares were unchanged.

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Trade deal uncertainty with the US and expensive valuations has hit sentiment on the bourses, experts say. "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," says Vinod Nair, Head of Strategy at Geojit Investments Limited, said.

"We expect stock-specific action to persist as earnings remain the key driver for near-term market direction," Siddhartha Khemka, Head of Retail Research at Motilal Oswal, said.

At the July 25 market open, sectoral indices were largely in the red, reflecting a subdued start. The Nifty Auto index slipped 0.78 percent, leading the losses, followed by declines in Nifty Media, Metal, and Consumer Durables. Banking indices were mixed—Nifty Bank edged down 0.17 percent, while PSU Bank bucked the trend with a 0.41 percent gain. Nifty IT and Energy also posted mild losses, down 0.19 percent and 0.43 percent, respectively. Broader markets were weak, with the Nifty Midcap 100 down 0.41 percent and Smallcap 100 losing 0.62 percent. Meanwhile, India VIX rose over 5 percent, indicating a sharp uptick in market volatility.

Bajaj Finance shares slipped 6 percent after brokerages dished out bearish calls on the stock. This comes after the company reported a 22 percent jump in consolidated net profit at Rs 4,765 crore. Brokerages say that stress in the MSME segment has led to a sharp surge in credit costs. Further, the management raised concerns over continued over-leveraging and warned of potential profitability pressure ahead as loan spreads narrow.

SBI Life Insurance shares rose over 2 percent after it reported a 14 percent year-on-year rise in net profit to Rs 594 crore for Q1 FY26, up from Rs 520 crore in the same quarter last year. The company’s net premium income for the quarter stood at Rs 17,178.5 crore, marking a 14 percent increase over Rs 15,105.5 crore recorded in Q1 FY25. JPMorgan downgraded the stock to neutral while CLSA maintained its outperform call.

Hexaware Tech shares slumped as much as 6 percent after the company posted a revenue decline in Q2. A spike in other expenses also weighed on margins. On the deal front, management said large consolidation deals remain in progress, while smaller ones are moving forward. However, slower decision-making has tempered expectations for the rest of the year.

Technical View

Technically, the index has slipped back into a choppy trading band, hovering between its 20-day EMA and 50-day EMA, placed at 25,150 and 24,950, respectively. A sustained breakout above the 25,300 level is still awaited to confirm bullish momentum. On the downside, the 50-day EMA near 24,950, combined with the psychological mark of 25,000, forms a critical support shelf for bulls, possibly their last line of defence. Notably, the 24,800–24,900 cluster has repeatedly served as a strong base throughout the month, and with the index oscillating in this pocket, dips are likely to attract renewed buying as long as 24,800 holds firm. A decisive close above 25,250 remains the key to reversing the current bearish bias and reviving a broader bullish tone.

SBI Life, Dr Reddy's Labs, Apollo Hospitals, Trent, Bharat Electronics, and SBI were the top gainers on the Nifty. Laggards on the index included Bajaj Finance, Bajaj Finserv, Shriram Finance, Bajaj Auto, and IndusInd Bank.