Sensex down 288 pts, Nifty at 24,672; what's ahead after weak July F&O series

India's domestic equity benchmarks, Sensex and Nifty50, opened lower on Friday, continuing a trend that could see them mark their fifth consecutive week of losses. 

This potential losing streak is driven by a confluence of factors, including persistent foreign institutional investor (FII) outflows, mixed corporate earnings, and US President Donald Trump’s announcement of a 25 per cent tariff on Indian imports

At 9:22 am, the BSE Sensex was trading at 81,053.28, down 132.30 points, or 0.16 per cent. The 30-share index fell 288 points earlier in the day. The NSE Nifty50 was down 47.05 points, or 0.19 per cent, at 24,721.30, after hitting a low of 24,672.45.

Hardik Matalia, Derivative Analyst - Research at Choice Equity Broking Private Limited, said the Indian benchmark indices are expected to open on a negative note today, as indicated by the GIFT Nifty, which signals a significant downtick of around 128 points in the Nifty 50. Market sentiment remains cautiously optimistic, weighed down by heightened volatility and mixed global cues. 

“The Nifty 50 opened on a weak footing in the previous session and briefly slipped below its intraday support of 24,700 before recovering nearly 133 points—making it an extremely volatile day. Despite this bounce, the index remains vulnerable unless it sustains a move above the 24,800 mark. A close above this level could potentially open the path toward the 25,000 level. On the downside, immediate support is located at 24,600, followed by 24,500—both of which may offer buying opportunities on dips,” Matalia said.

Among Sensex stocks, Sun Pharma led the losers with a 3.61 per cent fall to Rs 1643.90. Mahindra & Mahindra followed, declining 1.23 per cent. Other losers included Infosys (down 0.92 per cent), Tata Steel (down 0.82 per cent), Tata Motors (down 0.77 per cent), and Larsen & Turbo (down 0.60 per cent).

Coal India shares were in focus today after the state-run coal producer reported a 20.2 per cent YoY fall in the net profit at Rs 8,734.2 crore, even as revenue fell 4.4 per cent YoY to Rs 35,842.2 crore in the June quarter. The stock rose 085 per cent to Rs 379.65 in early trade.

Shanti Gold International is poised for a closely watched stock market debut today. The jewellery manufacturer raised Rs 360.11 crore through its initial public offering (IPO), which was open for subscription from July 25 to July 29. 

VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said the August series starts on a weak note after the 3.1 per cent dip in Nifty in July. In the near-term the market will be influenced by the tariff-related news. Since the date of implementation of the modified tariff rates is August 7th, that gives countries time to negotiate and bring the tariffs down. 

“Yesterday’s market action indicates that the market views the  25% tariff as a short-term issue. The rate is likely to come down after the next round of negotiations beginning this month,” Vijayakumar said.

“An important trend in the market is the weakness in the broader market, particularly the smallcaps. This trend is likely to continue given the high valuations of the segment. 
Sustained selling by the FIIs continues to be a negative. The sharp surge in the dollar index to 100 will nudge the FIIs to continue selling putting pressure on largecaps too. Investors can adopt a wait and watch strategy," Vijayakumar added.

Domestic equity benchmarks ended lower on Thursday amid heightened volatility due to the expiry of the July futures and options (F&O) series. The BSE Sensex declined 296.28 points, or 0.36 per cent, to close at 81,185.58, while the NSE Nifty50 slipped 86.70 points, or 0.35 per cent, to settle at 24,768.35.