29 July, 2025 : Indian Stock Market closes in green with significant gains, will the rally continue? The answer remains in Q1 results and FII's movements
Indian equity markets had a lackluster day on Wednesday due to IT and FMCG sector falls weighing down the benchmark indices, with banking and pharma sectors providing some support. The BSE Sensex fell more than 160 points to trade at about 82,560, while the Nifty 50 fell 45 points to trade at about 25,180, reflecting defensive investor sentiment during the earnings season and international uncertainty.
The largest laggard then was the IT sector. Shares such as Coforge and Persistent Systems dropped almost 9% and 8%, respectively, after mixed Q1 results. Even after posting revenue growth, market participants looked uncomfortable because of the lack of clear global tech demand and weak margin guidance. Overall market sentiment was dragged down by the 1.7% fall in the broader Nifty IT index.
But the banking space provided some solace. The Nifty Bank index kept going up due to HDFC Bank's and ICICI Bank's strong Q1 results, driven by healthy loan growth and good asset quality. Light buying interest was also noticed in PSU banks such as Canara Bank and Bank of Baroda, as some buyers were optimistic about regular credit offtake and manageable non-performing assets.
Pharma proved to be the other pick of the day. Dr Reddy's Laboratories gained over 2% after the company made an announcement to roll out a generic anti-obesity drug in some overseas markets. Other pharma players such as Cipla and Sun Pharma also registered minor gains, adding to the positivity in the overall healthcare space.
Thanks to worldwide occurrences, investors remained guarded on the macro side. International markets were shaken by US Federal Reserve statements and political turmoil after President Trump's surprise trip to the Fed that affected investor demand for emerging economies such as India.On the domestic front, there was optimistic sentiment regarding India's free trade negotiations with the UK, which if successfully concluded, would propel export-driven enterprises.
Technical experts opine that Nifty receives crucial support at levels of 25,100–25,150, and short-term resistance is at 25,300. A breakdown on either side may determine near-term action. Until that happens, range-bound action can prevail with stock-specific trades ruling the roost.
Overall, the session reflected the conservative mood of the market, with investors closely following earnings, sectoral changes, and world leads prior to opening aggressive positions. With IT stretched and defence sectors such as pharma and banking occupying its place, an unbalanced but uncertain atmosphere grips.
