Sensex Sinks Over 550 Points Amid IT Banking Weakness

New Delhi  July 28, 2025, India’s equity benchmarks dropped sharply today, led by weakness in IT and financial stocks amid mounting trade tensions and underwhelming earnings.

Sensex plunged more than 550 points, trading around 81,300, and Nifty 50 dipped below the 24,700 mark levels not seen since mid June.

Weakness in IT stocks, including TCS, Infosys, and HCL Tech, weighed heavily on both indices.

Kotak Mahindra Bank’s disappointing Q1 results caused its shares to fall roughly 7%, dragging down private banking and financial indices.

The IT index contracted by approximately 0.5%, while TCS shares declined 1.6% following its announced 2% workforce cut.

Global concerns and U.S.-India trade deal uncertainty, including potential tariffs on agricultural imports, dampened investor sentiment.

Meanwhile, GIFT Nifty futures were down about 20 points, signaling a cautious opening for India’s markets.

Despite the broader sell off, certain mid cap and defensive stocks saw rare gains. Additionally, the rupee gained modestly, reaching ₹86.47 per dollar, supported by improved risk appetite but capped by dollar demand from importers and foreign banks closing month end accounts.

India’s leading indices posted further losses today, continuing a losing streak over recent weeks. Attention from investors is focused on macroeconomic headwinds, policy uncertainties, and a sluggish earnings season.

The disappointment around Kotak Mahindra’s quarterly earnings rattled confidence in financial and private banking counters. Meanwhile, the performance of IT firms remained lackluster as investors took cues from TCS’s workforce restructuring and broader sectoral challenges.

Global cues and unresolved trade talks have elevated volatility, discouraging foreign portfolio inflows. Though domestic equities remain within a consolidation range, most analysts expect heightened choppiness until trade negotiations and company earnings become clearer.

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