Where is the market headed?
Another dull week has passed, with markets finally breaking down today. The trigger was TCS results falling short of expectations, though weakness had been building for several sessions. Small, gradual changes were already signalling softness; TCS simply acted as the catalyst. Selling pressure has emerged across IT, auto, defence, and capital market stocks.
Confusion over tariffs continues. Trump’s erratic announcements—such as 500% duties on those dealing with Russia, and a 30% tariff on Canada effective 1st August—are creating widespread uncertainty. No one knows what policies will hold tomorrow, making global business planning difficult. Companies are hesitant to launch new projects as future import costs remain unpredictable.
This policy indecisiveness risks slowing down global economic momentum. Private sector investments may get delayed, forcing governments to step in, which can lead to higher inflation and larger fiscal burdens. It’s not an ideal environment for businesses anywhere, but that’s the reality markets are navigating now.
Market Overview
Nifty declined by 0.8% today. The index opened with a gap down, followed by a minor attempt to fill the gap, which did not fully materialise. It closed almost at the day’s lowest levels, with the low at 25,129 and the closing at 25,149. Even towards the end of the session, there was no sign of recovery or optimism for the next day. The market ended the day on a thoroughly negative note.
Nifty Next 50
Nifty Junior was also down by 0.81%.
Nifty Mid and Small Cap
Mid caps declined 0.8%.
Small caps went down by 0.7%.
Bank Nifty
Nifty bank slipped 0.35%.
GOLD
Gold went up by 0.6%. It is currently priced at ₹9766 per gram.
Advance Decline Ratio
Advances dropped within the first few hours and remained subdued through the session, while declines stayed elevated. The day ended with 134 advances and 367 declines , reflecting a weak advance-decline ratio.
Heat Maps
TCS fell 3.5%, dragging down Infosys, HCL Tech, and Wipro as well. Auto stocks like Mahindra, Bajaj Auto, Maruti, and Tata Motors also slipped. Bharti Airtel and Reliance lost ground, while banking and finance stocks were mostly weak, with State Bank flat and ICICI Bank managing to buck the trend.
Hindustan Unilever stood out as a bright spot. The stock saw a sharp jump following Ms. Nair’s appointment as the new CEO and Chairman — a first for the company.
In the Nifty Next 50, heavy cuts were seen in Naukri, LTIM, Pidilite, DMart, TVS Motors, Britannia, VBL, Motherson, ABB, Gale, Siemens, and DLF. Gains were limited to a handful of names like Dabur, Zydus Life, Vedanta, Indigo, REC, and ICICI GI.
Sectoral Overview
Pharma and FMCG stocks held up today, with pharma rising 0.68% and FMCG up 0.5%, as money moved into defensives. IT, which typically benefits on such days, was one of the major drags, falling 1.78%. Defense was down 1.9%, while capital markets declined 2%.
Adding to the noise, there was market chatter around expiry changes — a possible shift to alternate weekly expiries between NSE and BSE. Such speculation keeps circulating as F&O traders face mounting costs from STT.
While the government highlights trader losses, a significant chunk of it is actually STT collected. Globally, there’s no equivalent to STT, yet in India, it has grown from its original purpose. Introduced as a replacement for long-term capital gains tax, STT now coexists with it, both having been hiked over time. Taxation, clearly, is unavoidable.
Sector of the Day
Nifty Ind Defence
Defence stocks are clearly breaking down now, with the sector down 1.94%.
Nifty Capital Market
Capital market stocks are also reeling, with BSE down another 3.5%. Stocks like CDSL, Multi Commodity Exchange, Computer Age Management, and Angel One are all drilling down. Overall, the entire sentiment in the market is clearly softening.
