On the trading day of Thursday, July 24, 2025, a downturn was experienced as major stock markets plummeted, led by noteworthy dips in the value of top-tier companies and the uninterrupted outflow of foreign capital. The well-known Sensex index, a barometer of the BSE with 30 companies under its umbrella, saw a proud start to the day but unfortunately, couldn’t sustain the momentum. Mounting losses to the tune of 542.47 points, equivalent to a reduction of 0.66%, the Sensex closed the trading day at 82,184.17. Within the trading duration, it sagged to an alarming low of 82,047.22, losing 679.42 points or 0.82%.
The NSE Nifty, a key reference for 50 companies listed on the NSE, fared no better and slid down by 157.80 points, settling at 25,062.10, a decline of 0.63%. Among the companies comprising the Sensex, several bore considerable losses including Trent, Tech Mahindra, Bajaj Finserv, Reliance Industries, Infosys, Kotak Mahindra Bank, HCL Technologies, and NTPC. Contrastingly, a few like Eternal, Tata Motors, Sun Pharma, Tata Steel, and Titan bucked the trend and ended the session positively.
Infosys, prominent among the veterans, suffered a decrease of over 1%. The timing coincided with the announcement of its Q2 performance, suggesting profit booking as the possible cause. In comparison with the national scenario, various Asian indices finished on a higher note. South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite and Hong Kong’s Hang Seng all closed their respective trading sessions on an upward trajectory.
Echoing the Asian market optimism, European shares also saw a boost. Providing a global perspective, even the US stock markets had enjoyed an uptick in numbers on the preceding day, Wednesday, July 23. An historic event transpired between India and the United Kingdom on this day as they committed to a breakthrough free trade agreement (FTA). This trade pact would result in a tariff reduction for British whiskey, automobiles, and a variety of merchandise, invigorating two-way trade with an estimated surge of approximately $34 billion annually.
The implications of the swap agreement forthtell benefits at a large span for Indian exports, implying tariff-free export for nearly 99% of them. Furthermore, it will expedite the import of whiskey, automobiles, and more diverse goods from Britain to India. This diplomatic move aimed at strengthening bilateral relations could significantly elevate the breadth of the trade collection, as per the predictions made by Indian officials.
Simultaneously, foreign institutional investment in Indian market showed a negative trend. Exchange data revealed that Foreign Institutional Investors (FIIs) had offloaded shares amounting to ?4,209.11 crore on the previous day. Paradoxically, local Indian institutions showcased a positive outlook. Domestic Institutional Investors (DIIs) bought shares of value Rs 4,358.52 crore on the same trading day.
On the energy markets, a substantial 1.24% increase in Brent crude, the global oil benchmark, led it to reach $69.36 per barrel. A conflicting scenario was observed on the Wednesday trading session of the stock market. The BSE Sensex leapt dramatically by 539.83 points, equating to a rise of 0.66%, concluding the day at 82,726.64. Similarly, the NSE Nifty also registered a substantial growth on the preceding day. With an increase of 159 points or 0.63%, it closed at 25,219.90.
Coming back to Thursday’s rundown, the performance of key constituents in the Sensex pack was rough throughout the day. Right from the core IT company Infosys to the banking heavyweights such as Kotak Mahindra Bank and power utility player NTPC, the scene was mostly painted red on the trading terminal. Digressing from the losses, few companies like Titan, Sun Pharma, Tata Motors bucked the pessimism, helping to reel in some positives amidst an overall gloomy market scenery.
From a broader perspective, factors affecting the market are not just rooted within its intrinsic health. The freshly signed Free Trade Agreement between India and the UK presents positive future implications. The prospect of a significant surge in bilateral trade, due to lowered tariffs and enhanced accessibility, brings a sense of optimism to both the trading partners. Although this has no direct bearing on the stock market for the day in question, it forms part of the overall financial ecosystem to which these domestic equity markets are connected.
Parallel to the domestic trading scenario, international markets seemed relatively unfazed. One element of this global commercial arena was the Asian markets, which displayed promising trends in stark contrast to their Indian counterparts. Major indices like the Nikkei from Japan, and Hang Seng from Hong Kong, wrapped up their respective trading days on a high note. This notably positive performance reinforces the global intricacy and the lack of straightforward correlation with Indian indices.
Mirroring the uptrend seen in their Asian counterparts, European exchanges also showcased impressive numbers. Not far behind, the United States markets ended on the greener side of the spectrum too. This goes to show that while domestic markets may not always positively reflect supportive global markets, the correlation isn’t always direct or proportional.
In light of foreign investment trends within the Indian equity market, a significant outflow by Foreign Institutional Investors (FIIs) was noted. Nonetheless, local market participants, termed as Domestic Institutional Investors (DIIs), demonstrated faith in the market by procuring equities. These contrasting actions by the two groups of institutional investors exhibit how different sections of the market can perceive the same situation differently.
Another crucial point of interest for market spectators on this trading day was the movement in commodity markets. Global oil benchmark, Brent Crude, saw a noteworthy rise, emphasizing the quicksilver nature of commodities and how they can often be independent of equities market movements.
Finally, to provide a reference point for Wednesday’s equity performance, Sensex and Nifty, both recorded a commendable upward trend. This juxtaposition outlines the volatility inherent in equity markets, as a bullish Wednesday quickly gave way to a bearish Thursday, with substantial movement in both directions in just a space of 24 hours.
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