Indian Stock Market Opens Lower As Auto & Metal Stocks Lead Declines

Indian equity markets opened on a bearish note on Friday, July 25, amid global uncertainty and profit-booking in key sectors

At 9:23 AM, the BSE Sensex was down 290 points (0.35%) at 81,894, while the NSE Nifty 50 slipped 110 points (0.44%) to 24,943.

Auto stocks led the morning declines with a 0.70% drop, followed closely by FMCG and the metal sectors.

Nifty Bank was also trading in the red, down 0.14% at 56,983. The broader market showed a sharper fall, with the BSE Smallcap index down 0.68% and the Midcap index lower by 0.45%.

Most sectoral indices were trading flat, with significant losses noted in auto, media, metal, FMCG, and oil and gas sectors.

Top gainers in early trade included SBI Life Insurance, Dr Reddy’s Laboratories, Bharat Electronics, NTPC, SBI, and Apollo Hospitals.

On the flip side, Bajaj Finance, Bajaj Finserv, Axis Bank, Jio Financial, and TCS Titan were among the top losers.

Impact of India-UK Free Trade Agreement

Despite the morning slump, analysts noted a positive longer-term outlook following the signing of the India-UK Free Trade Agreement (FTA).

Experts believe the FTA, which comes amid rising global trade tensions, will bolster India’s export sectors and improve prospects for a potential trade deal with the US.

Sectors such as textiles, leather, food processing, automobiles, pharmaceuticals, and gems and jewellery are expected to benefit and may attract investor focus in the coming weeks.

Asian markets showed a mixed trend. Hong Kong’s Hang Seng Index declined 0.99%, Japan’s Nikkei 225 was down 0.61%, and China’s markets also opened in the red.

On the other hand, South Korea’s KOSPI Index posted a 0.46% gain.

In the United States, the Dow Jones closed slightly lower, while the NASDAQ and S&P 500 ended the session in positive territory.

Foreign Institutional Investors (FIIs) were net sellers for the fifth straight session, offloading equities worth ₹2,134 crore on July 24.

In contrast, Domestic Institutional Investors (DIIs) continued their buying streak, investing ₹2,617 crore, marking their 12th consecutive day of net purchases.

As investors navigate global and domestic cues, the market remains watchful of corporate earnings and macroeconomic developments in the days ahead.

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