Indian equity markets witnessed a sharp decline on July 24, as weak corporate earnings and persistent foreign fund outflows triggered a broad-based sell-off. The BSE Sensex plummeted by 552 points to close at 82,998, while the NSE Nifty 50 lost 165 points, ending below the crucial 24,900 mark at 24,890. According to Moneycontrol, heavyweights like HDFC Bank, Infosys, and ICICI Bank contributed significantly to the downward pressure.
Market sentiment remained fragile throughout the session, with the broader indices — Nifty Midcap 100 and Smallcap 100 — also ending in the red. Volatility surged as the India VIX index spiked over 5.6%, indicating increased uncertainty in the market. Sectoral indices such as financials, IT, and consumer durables bore the brunt of the sell-off.
Bajaj Finance Q1 Earnings Miss Sparks Sharp Sell-Off
The primary trigger for the market downturn was the Bajaj Finance Q1 Earnings Miss, which saw its shares nosedive more than 5% after reporting a weaker-than-expected Q1FY25 performance. While the company posted a 4.9% year-on-year rise in consolidated net profit to ₹3,437 crore, the results fell short of analyst projections due to elevated credit costs and a slowdown in loan growth.
As reported by The Economic Times, investor concerns were further amplified by the management’s cautious commentary on the near-term outlook. Rising competitive intensity, tighter regulatory norms, and stretched valuations have raised red flags among institutional investors.
the Bajaj Finance Q1 Earnings Miss, considered a market bellwether, holds significant weight in the Nifty 50 index. Its underwhelming results acted as a catalyst for the broader sell-off. Analysts have since revised price targets downward, with mixed views on whether the stock can sustain its premium valuation without stronger growth metrics.
FII Sell-Off and Global Cues Deepen Market Woes
Adding to the pressure, foreign institutional investors (FIIs) continued their selling streak, withdrawing over ₹2,000 crore from Indian equities in a single session. According to Deccan Herald, concerns over global monetary policy tightening and strengthening U.S. dollar are driving capital out of emerging markets like India.
Analysts noted that lack of fresh domestic triggers and cautious global cues are keeping investor sentiment subdued. Rising U.S. bond yields, geopolitical tensions, and uncertainty over interest rate cycles have made investors more risk-averse. Domestically, lackluster Q1 earnings from key index constituents have added to the cautious tone.
As the market eyes upcoming earnings and macroeconomic indicators, experts recommend a prudent approach — advising investors to stay focused on high-quality, fundamentally strong stocks while avoiding aggressive trades in the near term.
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