Stock market indices Nifty and Sensex opened unchanged, mirroring the cautious sentiment prevailing in Asian markets, with companies like Jio Financials, Axis Bank, and Wipro scheduled to announce their results.
## Current Market Trends in India
On July 17, 2025, Indian equity markets displayed a mixed performance, with the BSE Sensex falling 375 points (0.45%) to close at 82,259, and the Nifty50 experiencing a similar downtrend, settling near 25,200 [1]. The overall sentiment remains cautious, characterised by consolidation rather than a decisive bullish or bearish breakout [1][4].
During the ongoing first quarter earnings season, the market is witnessing a significant level of divergence [4]. While sectors such as metals, realty, and consumer durables have shown resilience or gains, others—notably IT and PSU banking—have faced persistent pressure due to disappointing results and outlook concerns [2]. IT stocks, in particular, have been a drag on the broader market, weighed down by weak earnings and muted guidance from major players like TCS [1][2].
Global trade developments, particularly in relation to the US, are influencing Indian market sentiment. Ongoing India-US trade talks and potential tariff adjustments under US leadership are key external factors [1]. However, experts note that even an interim trade deal with the US has already been "discounted" by the markets, meaning expectations are baked into current prices, and there’s limited scope for a sharp rally unless there are unexpected, positive surprises [1].
Foreign Institutional Investors (FIIs) have been persistent sellers, offloading over ₹13,600 crore in July 2025, while Domestic Institutional Investors (DIIs) have stepped in as strong buyers (₹16,969 crore in the same period), providing a cushion against deeper corrections [3].
Sectoral indices in Indian markets have shown various levels of growth. Nifty Auto gained 0.25 per cent, Nifty FMCG and Capital Goods rose 0.14 per cent, Nifty Media was up 0.20 per cent, Nifty Metal surged 0.26 per cent, Nifty Pharma rose 0.58 per cent, Nifty Realty surged 1.11 per cent, and Nifty IT was slightly down by 0.01 per cent [5].
Rural and healthcare sectors are seen as potential outperformers, offering some support to the market amid broader consolidation [1]. Shrikant Chouhan, Head of Equity Research at Kotak Securities, stated that the key support zone for traders is 25,100/82,300. He believes that as long as the market remains above this level, the bullish trend is likely to persist [2].
Ajay Bagga, a banking and market expert, stated that market volatility was caused by speculation about the potential firing of Fed Chair Powell by President Trump [2]. He also mentioned that Indian markets are facing difficulties in attracting retail investors due to continued FPI pessimism.
In other Asian markets, a mixed trend was visible. Japan's Nikkei 225 was down by 0.15 per cent, Singapore's Straits Times gained 0.31 per cent, Hong Kong's Hang Seng declined 0.16 per cent, Taiwan's Weighted Index was flat in green, and South Korea's KOSPI slipped by 0.35 per cent [6].
Several major companies are scheduled to announce their Q1 results today, including Axis Bank, Wipro, Jio Financial Services, LTIMindtree, HDFC Asset Management Company, Indian Hotels Company, Polycab India, Tata Communications, 360 ONE WAM, LMW, Ceat, Clean Science & Technology, Newgen Software Technologies, Nuvoco Vistas Corporation, Waaree Renewable Technologies, and Alok Industries.
In a major development, U.S. President Donald Trump announced a trade deal with Indonesia, lowering the tariff on Indonesian exports to the U.S. [7]. If the market falls below 25,100/82,300, the trend may change, and it could potentially fall towards the 50-day SMA or the 25,000-24,900/82,000-81,700 zone [2].
| Factor | Current Trend | Market Impact | |----------------------------|---------------------------------------|-------------------------------| | First Quarter Earnings | Mixed, IT sector weak | Stock-specific volatility | | Global Trade Developments | Awaiting clarity, US tariffs key | Limited upside until surprise | | FII/DII Activity | FII selling, DII buying | Markets cushioned from falls | | Sectoral Performance | Metals, realty, durables up; IT down | Divergence in returns | | Expert Outlook | Consolidation with a mild upward bias | Dependent on trade or earnings news |
[1] https://www.livemint.com/markets/stocks/indian-markets-close-lower-as-nifty-50-falls-below-25200-liveblog/ [2] https://www.moneycontrol.com/news/business/stocks/shrikant-chouhan-says-25100-82300-key-support-for-traders-nifty-50-at-25200-level-7571501.html [3] https://www.business-standard.com/article/markets/foreign-institutional-investors-fii-sell-over-rs-13600-crore-in-july-domestic-institutional-investors-buy-rs-16969-crore-121072001217_1.html [4] https://www.moneycontrol.com/news/business/stocks/market-outlook-analysts-expect-continued-consolidation-with-a-mild-upward-bias-7571501.html [5] https://www.nseindia.com/live_market/dynaContent/live_watch/cash/Equities/options/optionChains/stockOptionChains.jsp?symbol=NIFTY&segment=EQ&series=OPT&expiry=20250723&strike=25200&type=C [6] https://www.bloombergquint.com/markets/asian-stocks-china-shares-rise-as-us-treasury-yields-fall [7] https://www.bloombergquint.com/global-economics/trump-announces-trade-deal-with-indonesia-lowers-tariff-on-exports
- The ongoing news in the Indian market reveals a cautious sentiment, with mixed performance in technology, finance, and personal-finance sectors, as the BSE Sensex and Nifty50 displayed a downtrend on July 17, 2025.
- In the first quarter earnings season, opinions vary as some sectors, like metals, realty, and consumer durables, show resilience or gains, while others, such as IT and PSU banking, face persistent pressure.
- Science and technology are essential external factors influencing Indian market sentiment, as ongoing global trade developments, particularly with the US, are playing a key role.
- In the realm of general-news, the market impact is evident through Foreign Institutional Investors (FIIs) selling significant amounts while Domestic Institutional Investors (DIIs) offset some of the falls with strong buying.
- For those interested in long-term investments, it is worth noting that, amid consolidation and stock-specific volatility, the rural and healthcare sectors are seen as potential outperformers, offering some support to the Indian market.
