Investors lose ₹10 lakh crore in two days as Sensex sheds 1,264 pts, Nifty falls to 24,837

The Indian equity market witnessed a sharp sell-off over the past two sessions, wiping out nearly ₹10 lakh crore in investor wealth. The Sensex plunged 1,264 points over two sessions, while the Nifty dropped 383 points, as weak global cues, sustained foreign fund outflows, and lacklustre corporate earnings weighed on investor sentiment. The impact of mixed Q1 results overshadowed optimism around the India-U.K. free trade agreement. Additionally, anxiety over the approaching August 1 U.S. trade tariff deadline added to the market's cautious mood, prompting broad-based selling across sectors.

On Friday, the BSE Sensex closed at 81,463.09, down 721 points or 0.88%, and the NSE Nifty50 at 24,837, down 225 points or 0.9%. The broader market saw sharp selling, with the Nifty MidCap index falling 1.61% and the Nifty SmallCap index tumbling 2.1%. In the previous session, the 30-share Sensex had settled 542 points lower, the Nifty lost 158 points, while the Nifty MidCap 100 and the Nifty SmallCap 100 declined by 0.58% and 1.09%, respectively.

As a result, the overall market capitalisation of BSE-listed firms tumbled to ₹451.68 lakh crore from ₹461.43 lakh crore as on July 23, eroding investors’ wealth by about ₹10 lakh crore in just two sessions.

Market logs longest weekly losing streak of 2025

On a weekly basis, the Indian equity market extended its losing streak to a fourth consecutive week, the longest in 2025 so far and the first such stretch since October 2024. Both benchmark indices, the Sensex and Nifty, declined by around 0.5% during the week ended July 25, 2025.

The broader markets were the worst hit, with the BSE small-cap index losing 2.3%, and BSE mid-cap index sliding 1.6% over the week. Most of the sectoral indices closed the week in the negative territory, with BSE Reality, BSE IT, BSE Energy and BSE FMCG being the major losers.

"This persistent weakness can be attributed to a combination of factors - the absence of strong positive triggers, Q1 earnings from key corporates coming below expectations, and lingering uncertainty on the global trade deal front, all of which have dampened investor sentiment," said Sudeep Shah, Head - Technical and Derivatives Research, SBI Securities.

Shrikant Chouhan, Head Equity Research, Kotak Securities, said the equity markets in India and globally focused on earnings and management commentary during the Q1FY26 earnings season. While aggregate earnings were broadly in line with estimates, the muted outlook provided by a number of companies across sectors dented the market mood. Crude oil price remains range-bound and continues to provide comfort. Further, good monsoon so far and low inflation numbers are further positive for India.

“However, uncertainty with trade tariff continues to impact global and domestic equity market sentiments. Over the next couple of weeks, stock specific action will continue led by Q1FY26 result outcome and management commentary,” he said.

Additionally, elevated valuations in large-cap stocks, coupled with significant net short positions held by FIIs, added to the downward pressure. “Investor sentiment remained fragile amid ongoing uncertainty over U.S.-India tariff negotiations and the ECB maintaining the status quo, with rate cuts deferred until clearer insights emerge on the inflationary impact of trade developments," said Vinod Nair, Head of Research, Geojit Investments.

Echoing the same, Ajit Mishra – SVP, Research, Religare Broking, said the recent correction reflects growing concerns around earnings disappointments and cautious management commentary, which are weighing heavily on investor confidence. With Nifty breaching 24,900, immediate support for the index is now seen near 24,700, while the major support lies in the 24,450–24,550 zone. He advised traders to align their positions with the prevailing trend and refrain from averaging down on loss-making trades.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)