Why are Sensex and Nifty Opening Lower Today?
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Synopsis
The Indian equity markets faced a downward trend as Sensex and Nifty opened lower, primarily due to substantial losses in stocks like Axis Bank and Bharti Airtel. This report delves into the latest market dynamics and investor sentiments, shedding light on the ongoing trends and potential impacts.
Key Takeaways
- Sensex down by 171 points.
- Nifty sees a drop of 35 points.
- Major stocks like Axis Bank and Bharti Airtel among the top losers.
- FIIs remain net sellers for the second consecutive session.
- Domestic investors continue to buy, showing a contrasting trend.
Mumbai, July 18 (NationPress) The Indian equity markets saw a decline in opening trade on Friday, with major stocks like Axis Bank and Bharti Airtel emerging as the significant losers in the BSE index. By 9:25 am, Sensex had dropped by 171 points or 0.21 percent, settling at 82,087, while Nifty fell by 35 points or 0.14 percent, reaching 25,075.
Among the gainers in the Sensex, M&M, Tata Steel, Power Grid, L&T, UltraTech Cement, Infosys, Tata Motors, BEL, NTPC, TCS, Trent, and Maruti Suzuki performed well. On the other hand, Axis Bank, Bharti Airtel, Kotak Mahindra Bank, Tech Mahindra, HDFC Bank, Zomato, HUL, Sun Pharma, Bajaj Finance, ICICI Bank, Titan, and Bajaj Finserv were the top losers.
In terms of sectors, auto, IT, PSU bank, metal, realty, media, energy, infrastructure, PSE, and commodities showed significant gains, whereas financial services, FMCG, and private banks faced losses.
“So far in July, India has underperformed compared to most global markets, with Nifty declining by 1.6 percent. This downturn is largely attributed to selling by foreign institutional investors (FIIs). A discernible trend is evident in FII activities this year,” stated Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
FIIs were net sellers for the second consecutive session on July 17, offloading shares worth Rs 3,694 crore, while domestic institutional investors (DIIs) continued their buying spree for the ninth day, acquiring equities worth Rs 2,820 crore.
Akshay Chinchalkar, Head of Research at Axis Securities, noted that Nifty closed down for the fifth time in seven trading days on Thursday, although the market remains above the rising trendline from the lows observed on May 9.
“From a technical standpoint, the daily candle formed a bearish engulfing pattern, which aligns with our earlier observations that closing above 25,245 and then 25,340 was crucial for a bullish resurgence. Thus, 25,000 serves as a critical support level while 25,340 stands as essential resistance. Asian markets are predominantly bullish this morning, along with US index futures,” he added.
Major Asian indices were in the green, with Shanghai, Hong Kong, Bangkok, and Jakarta seeing notable gains, while Tokyo and Seoul were trading lower. The US market concluded positively on Thursday, buoyed by optimistic investor sentiment.
Point of View
It is crucial to understand the underlying factors contributing to the current market situation. The consistent selling by foreign institutional investors, coupled with the buoyant performance of domestic institutional buyers, reflects a complex yet dynamic interplay of market forces. As we navigate these fluctuations, it is essential for investors to remain informed and strategic in their approach.
NationPress
20/07/2025
Frequently Asked Questions
What caused the decline in Sensex and Nifty today?
The decline is primarily attributed to significant losses in major stocks like Axis Bank and Bharti Airtel, alongside a trend of selling by foreign institutional investors.
What sectors are performing well despite the market downturn?
Sectors such as auto, IT, PSU banks, metal, and commodities have shown notable gains, even as financial services and FMCG face challenges.
Who are the top gainers in the Sensex today?
Top gainers include M&M, Tata Steel, Power Grid, and Infosys, among others.
How are foreign institutional investors impacting the market?
FIIs have been net sellers recently, which has influenced market sentiment and contributed to the declines seen in indices.
What support and resistance levels should investors watch?
Investors should monitor 25,000 as a critical support level and 25,340 as vital resistance, according to recent technical analyses.
