Indian equity markets ended the week on a mixed note, with benchmark indices Nifty 50 and Sensex declining by 1% each, reflecting cautious sentiment among large-cap investors.

In contrast, broader markets outperformed, as small-cap stocks rose 1.4% and mid-caps gained 1% over the week, indicating continued interest in select segments beyond the frontline indices.

"A broad-based sell-off was observed in the national market amidst a disappointing initial set of earnings from the finance and IT sectors. Elevated valuations in large-cap stocks, coupled with significant net short positions held by FIIs, have contributed to a cautious sentiment among investors. Moreover, additional tariff threats are also casting a shadow on India over its trade relationship with Russia,” said Vinod Nair, Head of Research, Geojit Investments Limited.

“Despite these pressures, the medium- to long-term outlook for India remains optimistic, supported by low inflation levels and proactive monetary authority committed to sustaining economic growth."

FIIs continued to be net cash sellers to the tune of ₹17,330 crore as of July ’25.

Foreign institutional investors (FIIs) turned net sellers for the second consecutive session on July 17, offloading equities worth ₹3,694 crore. Meanwhile, domestic institutional investors (DIIs) continued their buying spree for the ninth straight session, purchasing equities worth ₹2,820 crore.

The market breadth was negative, with 2391 out of 4208 stocks trading on the BSE declined, while 1,658 advanced, and 159 ended unchanged.

As many as 143 stocks hit their 52-week highs, while 45 slipped to their 52-week lows. Adding to it, 292 stocks were locked in its upper circuit limit, while 178 slipped to their lower circuit limit.

On the BSE Sensex pack, 23 out of 30 stocks ended in the negative terrain. The top losers were Axis Bank, BEL, HDFC Bank, Bharti Airtel, and Kotak Mahindra Bank. On the other hand, Bajaj Finance, Tata Steel, Infosys, ICICI Bank, HCL Tech, and Infosys were among top gainers.

Extending losses for the second straight session, Indian benchmark indices ended lower on Friday amid rising global uncertainty and weak investor sentiment. The BSE Sensex ended 501.5 points, or 0.61%, lower at 81,757.73, and the NSE Nifty fell 143 points, or 0.57%, to settle at 24,968.40.  

During the session, the 30-share Sensex declined as much as 651 points, or 0.8%, to hit an intraday low of 81,608, and the 50-share Nifty fell 193 points, or 0.76%, to 24,919 level. The market saw broad-based selling, with the Nifty Midcap 100 and Nifty Smallcap 100 indices falling up to 0.8% during the trade so far.

Shares of Indian solar module manufacturers, including Waaree Energies, Premier Energies, and SW Solar, fell by up to 4% on July 18 after U.S.-based solar firms filed fresh trade petitions against India, Indonesia, and Laos. The petitions seek additional anti-dumping and countervailing duties on solar imports to the U.S., triggering concerns over export prospects and denting investor sentiment in Indian solar stocks.

Equity markets continued to drift lower for the second straight session on Thursday, as concerns over macroeconomic stability weighed on investor sentiment. The Sensex declined as much as 650 points, while the Nifty50 also slipped below the crucial 25,000 level.

“The major reasons for the fall are driven by a combination of weak earnings, banking and IT sector drag, foreign investor selling, technical breakdowns, and broader macro uncertainties. Maintaining a cautious stance, with attention to upcoming earnings announcements and developments in trade policy, is prudent in the current environment,” said Khushi Mistry, Research Analyst at Bonanza.

In a strategic move, Reliance Retail, a subsidiary of Reliance Industries, on Friday announced the acquisition of consumer durables maker Kelvinator as it looks to "significantly amplify its leadership" in the country’s fast-growing consumer durables sector. Reliance Retail is India’s largest organised retail chain with 19,340 stores.

Zee Entertainment Enterprises Ltd. (ZEEL) has announced the launch of two new hybrid television channels—Zee Power in Karnataka and Zee BanglaSonar in West Bengal—as part of a broader effort to reposition itself as a content-tech network. Both channels are set to go on air in August 2025, accompanied by state-wide multimedia campaigns.

The Sensex fell over 550 points in intraday trade on Friday, while the Nifty 50 slipped below the 25,000-mark, reflecting weak investor sentiment across sectors amid global cues and profit booking

The share price of LTIMindtree Ltd dropped by over 1.7% today, trading around ₹5,106, even as the IT services company reported a decent set of Q1FY26 numbers broadly in line with Street expectations.

The rupee rises by 6 paise to 86.06 against the US dollar in early trade today, in the wake of subdued dollar strength and a drop in crude oil prices.

Reliance Industries Ltd, which will reveal its Q1 FY26 results today, saw its share price inch up by 0.57% in early morning trade.

GNG Electronics Ltd., for its initial public offering, has set the price band of shares worth ₹460 crore, which will open to the public next week. For bidding, the shares will come in the price band of ₹225-237 apiece.

Clean Science and Technology shares fell by about 7% today over its Q1 FY26 results.

For its Q1 results, the company's revenue rose by 8% compared to the same quarter last year, while its EBITDA rose by 5% on a YoY basis. However, the company's margins for the same quarter narrowed by 41.7%, while its net profit increased by 6%.

Axis Bank shares dropped over 7% in early trade today after the private lender reported a weaker-than-expected performance for the June quarter. A sharp rise in provisions and deterioration in asset quality weighed on investor sentiment. In the overnight trade, U.K.-listed shares of private lender Axis Bank Ltd., also known as Global Depository Receipts (GDR), fell nearly 5% as investor reacted negatively to the lender's quarterly results.

Wipro’s share price climbed 4% in early trade on Friday, following the release of its Q1FY26 results after market hours on Thursday. The company also announced a dividend, adding to the positive sentiment.

The Bengaluru-based IT firm posted a consolidated net profit of ₹3,336 crore, up 10% year-on-year, though down 7% sequentially.

In terms of constant currency, revenue stood at $2,590 million, declining 2% quarter-on-quarter and 2.3% year-on-year, but still exceeding market expectations. Revenue from the IT services segment came in at $2,587.4 million, registering a 0.3% sequential decline and a 1.5% drop compared to the previous year.

The BSE Sensex dropped as much as 200 points, or 0.24%, to 82,058, and the Nifty50 was at 25,076, down 35 points, or 0.14%.

Shares of Axis Bank dropped over 4% in opening trade today after the private lender released its June quarter earnings report. The bank posted a 3.8% decline in standalone net profit to ₹5,806.1 crore, while net interest income (NII) increased marginally by 0.8% to ₹13,559.8 crore.

Indian benchmark indices opened slightly lower on Friday, undermining firm global cues amid cautious investor sentiment. The Sensex and Nifty saw a muted start as traders weighed earnings reports and lingering concerns around global economic trends.

While firm trading in Asian markets offered some support, uncertainty around the U.S.-India trade outlook and stock-specific reactions to quarterly results kept broader sentiment subdued.

Slippages extended to the 25,120–25,090 region - previously identified as a key pivot area. The market's pause around this zone raises the possibility of a rebound today, potentially toward 25,330 or even 25,420, said Anand James, Chief Market Strategist, Geojit Investments.

"For now, we await a decisive break below 24,920 to consider directional downside trades. Meanwhile, intermediate resistance levels on the upside are expected at 25,150, 25,188, and 25,265," he said.

Foreign Institutional Investors (FIIs) remained net sellers for the second consecutive session on July 17, offloading equities worth ₹3,694 crore. Meanwhile, Domestic Institutional Investors (DIIs) continued their buying spree for the ninth straight session, purchasing equities worth ₹2,820 crore, said Hardik Matalia, Derivative Analyst - Research at Choice Equity Broking Private Limited.

"Given the current environment of heightened volatility and mixed signals, traders are advised to adopt a cautious "sell-on-rise" approach, especially when using leverage. Booking partial profits during rallies and implementing tight trailing stop-losses is recommended to manage risk. Fresh long positions should only be considered if the Nifty sustains above the 25,378 level. While the broader market undertone remains cautiously bullish, it is essential to closely monitor key technical levels and evolving global cues," he said.  

In July so far, Indian markets have been underperforming most global peers, reflecting subdued investor sentiment and cautious positioning ahead of key earnings and trade deal uncertainties.

"In July, so far, India has been underperforming most markets, with a dip of 1.6% in Nifty. A significant contributor to the decline is the selling by FIIs. There is a clear pattern in FII activity this year so far. They were sellers in the  first three months," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

"Along with selling in the cash market FIIs have been increasing short positions in the derivatives market too,  which reflect a bearish outlook. Elevated valuations in India and cheaper valuations in other markets will continue to influence FII activity," he added.

"A significant feature of economic activity in India during the recent years has been the resilience of luxury consumption and weakness in mass consumption. Early indications from Q1 results -good results from hotels industry- indicate  continuation of this trend. Niche luxury segments across sectors are likely to do well."

Investors will be closely tracking shares of Axis Bank, Wipro, LTIMindtree, Jio Financial Services, Tata Communications, Nuvoco Vistas Corporation, Shoppers Stop, Sunteck Realty, Indian Hotels, and many others today following the release of their Q1 earnings.

Reliance Industries, JSW Steel, Hindustan Zinc, and Indian Overseas Bank, L&T Finance, Bandhan Bank, Aarti Drugs, Atul, IndiaMART InterMESH, Mahindra EPC Irrigation, Mastek, Mangalore Refinery and Petrochemicals, and Indosolar are set to release their June quarter results today.

Adding to it, HDFC Bank, ICICI Bank, Yes Bank, Union Bank of India, RBL Bank, AU Small Finance Bank, Can Fin Homes, Central Bank of India, EPACK Durable, India Cements, JK Cement, Punjab & Sind Bank, Rossari Biotech, and Reliance Power will announce their Q1 results on July 19.

Wall Street ended higher on Thursday on the back of robust corporate earnings and encouraging economic data. The S&P 500 rose 0.54% to close at a record high, while the tech-heavy Nasdaq Composite advanced 0.75%, marking its tenth record close of 2025. The Dow Jones Industrial Average also gained 0.52%.

Investor sentiment was lifted by upbeat weekly jobless claims and June retail sales data, both indicating resilience in the U.S. economy. Among individual movers, PepsiCo shares jumped over 7% after the company reported better-than-expected earnings, while United Airlines also rallied 3% following a strong June-quarter earnings beat.

Equity markets in Asia-Pacific region traded higher on Friday, tracking overnight gains in U.S. stocks following strong economic data that eased concerns about the world’s largest economy. Investor sentiment was further supported after U.S. President Donald Trump denied reports of plans to remove Federal Reserve Chair Jerome Powell, alleviating worries about the potential implications for central bank independence and future monetary policy.

Hong Kong’s Hang Seng, Indonesia’s Jakarta Composite, and Taiwan’s Weighted Index rallied over 1% each, while China’s Shanghai Composite and Singapore’s Straits Times rose up to 0.4% in early trade. Australia’s ASX 200 was also up by over 1% in the final hour of trade.

On the other hand, Japan’s Nikkei 225 and South Korea’s Kospi were down by 0.4%.

At 8:05 AM, GIFT Nifty futures were trading 35 points higher at 25,183, indicating a positive opening for the Sensex and Nifty.

On Thursday, Indian benchmark indices closed lower on the weekly expiry day amid uncertainty around the proposed India-U.S. trade deal. The BSE Sensex declined by 375.24 points, or 0.45%, to close at 82,259.24, while the NSE Nifty50 slipped 100.6 points, or 0.4%, ending the session at 25,111.45. The broader market also ended in negative terrain, with the Nifty MidCap 100 index falling by 0.27%, while the Nifty SmallCap 100 declined 0.18%.

The Indian benchmarks BSE Sensex and NSE Nifty50 have been trading in a narrow range over recent sessions due to cautious investor sentiment, mixed global cues, uncertainty surrounding the U.S.-India trade deal, and an uneven start to the earnings season.

Today, Indian share market is set to open higher, taking cues from overnight gains on Wall Street and firm trading across Asian markets.

While strong overnight cues from Wall Street and firm trends in Asian markets may provide initial support, sustained upside will likely depend on stock-specific earnings performance, clarity on global interest rate outlook, and progress on key macro data. Any rebound from current levels may face resistance unless broader participation improves and fresh triggers emerge, say analysts.