The Sensex ended the day down by 721.08 points, or 0.88%, closing at 81,463.09, while the Nifty dropped by 225.10 points, or 0.90%, ending at 24,837. Both indices saw a tough session with more stocks declining than advancing — with only 826 stocks advancing, 2,654 stocks saw a drop.
The midcap and smallcap stocks weren’t spared either, both indices dipping by as much as 2%. With all these sectors under pressure, it’s clear that today was one of those days where nothing seemed to work in favour of the bulls.
Additionally, as the volatility index (India VIX) shot up by over 5%, it’s clear that the market was in risk-off mode today. The mood on Dalal Street was filled with fear, and when the VIX spikes like this, it’s a clear sign that traders are getting jittery.
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Impact on the Stock Market
Sectoral Indices Performance
All sectoral indices, except for pharma and healthcare, ended deep in the red. The Nifty Media index was the biggest loser, falling by over 2.5%. Other sectors like IT, Metal, Auto, PSU Banks, and Realty also took a hit, with losses ranging from 1% to over 2% in some cases.
| Sector/Index | Performance |
| IT & BPM sector | -1.42% |
| Healthcare sector | 0.69% |
| Oil & Gas sector | -1.96% |
| Real estate sector | -0.99% |
| PSU Bank in India | -1.70% |
Top gainers today
| Company | Price (in ₹) | Change % |
| Cipla Share Price | 1,532.50 | 3.00 |
| SBI Life Insura Share Price | 1,832.10 | 2.15 |
| Apollo Hospital Share Price | 7,468.50 | 1.43 |
| Dr Reddys Labs Share Price | 1,277.90 | 0.98 |
| HDFC Life Share Price | 762.35 | 0.67 |
Top losers today
| Company | Price (in ₹) | Change % |
| Bajaj Finance Share Price | 913.75 | -4.71 |
| IndusInd Bank Share Price | 823.70 | -2.85 |
| Shriram Finance Share Price | 615.85 | -2.79 |
| Bajaj Auto Share Price | 8,075.50 | -2.57 |
| Tech Mahindra Share Price | 1,461.90 | -2.45 |
Market Aftermath: Impact on Stocks
Cipla: A Positive Outlier Amidst The Carnage
While the overall market faced losses, Cipla stood out with its positive Q1 results. The company reported a 10.3% increase in net profit, rising to Rs 1,298 crore. This beat analysts’ estimates, which had pegged the profit at Rs 1,208 crore. However, revenue growth missed expectations, coming in at Rs 6,957 crore, which was lower than the forecasted Rs 7,145 crore.
Despite the miss on the revenue side, Cipla’s profit growth was impressive, and its EBITDA margin held steady at 25.6%, a positive sign in an otherwise difficult market. This performance highlights that, while the broader market is struggling, strong earnings from healthcare and pharmaceutical companies are still driving positive sentiment in the sector.
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Bajaj Finserv: Strong Results, But Not Enough to Lift the Market
Bajaj Finserv’s Q1 results were quite impressive on the profit front, with a 30.5% increase in net profit, which rose to Rs 2,789 crore. The company’s revenue also saw a solid increase of 12.5%, coming in at Rs 35,439 crore. However, despite the impressive numbers, the stock couldn’t escape the broader market sell-off.
Interestingly, while Bajaj Finserv’s life insurance business grew by 9%, the decline in the general insurance premium by 20% on a quarter-to-quarter basis raised concerns. The pressure on the broader financials market, coupled with rising credit risks, meant that Bajaj Finserv’s positive numbers weren’t enough to boost investor sentiment today.
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Trident: A Big Profit Jump, But Questions About Sustainability
Trident saw a remarkable 7% increase in its share price after it reported a massive 89.7% year-on-year rise in net profit, which reached Rs 140 crore for Q1. The improvement was driven by a significant reduction in operating expenses, and the company’s EBITDA margin expanded to 17%. This performance is impressive, but Trident’s revenue slipped slightly, down 2.1% to Rs 1,706.8 crore.
While the profit growth is undeniably strong, it’s worth questioning whether it’s sustainable in the long run. The company’s revenue dip may raise concerns about its ability to maintain its growth momentum, particularly in an industry that is highly influenced by changing consumer demands and input costs.
Crude Oil: A Positive in a Sea of Red
While the stock market may have taken a beating today, crude oil prices showed some positive movement. On July 24, Brent crude futures rose by 0.3%, reaching $68.72 per barrel, while US West Texas Intermediate (WTI) crude rose to $65.47 per barrel, also up by 0.3%.
The rise in oil prices was driven by optimism surrounding US trade talks. As negotiations with Japan progress, there’s hope that it will alleviate some pressure on the global economy. Additionally, a decline in US crude inventories by 3.2 million barrels last week further bolstered the price of oil. Despite this positive movement, analysts remain cautious, as concerns about the US-China trade talks and geopolitical tensions between Russia and Ukraine continue to limit the potential for further price increases.
Conclusion
Today was a tough day for the Indian stock market. The bears were firmly in control, and both the Nifty and Sensex saw significant declines. However, amid the broader sell-off, some individual stocks like Cipla and Bajaj Finserv showed resilience, posting strong earnings despite the challenging environment.
On the global front, rising crude oil prices gave investors a glimmer of hope, but it wasn’t enough to reverse the negative sentiment driving the market today. The market will likely remain volatile in the coming days, as the ongoing uncertainty regarding global trade and domestic economic factors continues to influence investor sentiment.
The Indian stock market remains in a tricky spot, and with FIIs cautious about the valuations, there’s little to suggest that a swift turnaround is on the horizon. Investors will need to stay watchful and make decisions based on market conditions, keeping in mind that volatility could continue for a while.
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