Indian stock markets ended lower for the fourth consecutive session on Monday, July 14, 2025. Investors remained cautious as several negative triggers pressured the indices. Global tensions, weak earnings from top IT companies, and regulatory developments in the derivatives segment created a storm for traders and long-term investors alike.
Benchmark Indices Lose Ground
The BSE Sensex fell by 247.01 points, ending the day at 82,253.46, while the Nifty 50 slipped by 67.55 points to close at 25,082.30. The decline marked a continuing downtrend that started last week. Traders cited a mix of global and domestic factors as the reason for sustained selling pressure.
Although the fall remained moderate, it showed signs of increasing nervousness in the market. The pressure came mainly from the Information Technology (IT) sector, which saw a broad selloff following disappointing earnings from major players.
IT Sector Leads the Decline
The IT index declined by over 1.1%, with top companies like Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, Tech Mahindra, and LTIMindtree ending in the red. TCS triggered the sector-wide fall after it reported weaker-than-expected quarterly results. Investors grew more worried when the company shared a cautious outlook for the rest of the year.
These results raised concerns that the global slowdown could start affecting technology spending in key markets like the United States and Europe. As a result, traders pulled out of IT stocks quickly.
Midcaps and Smallcaps Show Strength
Despite the losses in large-cap indices, midcap and smallcap stocks outperformed. The Nifty Midcap 100 and Smallcap indices gained between 0.7% and 1%, showing resilience in the broader market. Sectors such as real estate, media, and public sector banks attracted buying interest. These sectors gained between 0.5% and 1.4%.
Investors shifted their focus to mid and small-sized companies because they expected better growth opportunities in these segments. Also, many of these stocks had not participated in the earlier rally, making them attractive at current valuations.
Jane Street Controversy Adds to Volatility
One of the biggest stories affecting the market came from the derivatives segment. The Securities and Exchange Board of India (SEBI) continued its investigation into Jane Street, a global trading firm accused of manipulating prices in the Indian options market.
Market capitalization worth nearly ₹1.4 lakh crore evaporated from exchanges such as BSE and NSE as shareholders reacted sharply to news of a temporary trading ban on the firm. Jane Street deposited more than $560 million in escrow to cooperate with Indian regulators and to potentially lift the trading restrictions.
This controversy has shaken investor confidence in the futures and options (F&O) segment, which forms a large part of market volumes in India.
Stock-Specific Moves
Several blue-chip stocks moved sharply based on news flow and sectoral trends:
-
ITC managed to gain 0.54%, closing at ₹419.30. The stock performed better than the broader FMCG sector due to strong fundamentals and stable cash flows.
-
Hindustan Unilever (HUL) dropped slightly by 0.15% to close at ₹2,516.25. The stock showed high trading volume, indicating investor interest despite weakness in the sector.
-
Maruti Suzuki slipped by 0.5%, ending the day at ₹12,515.50. Traders blamed weak demand trends and higher competition in the passenger vehicle segment for the dip.
-
State Bank of India (SBI) bucked the trend and closed with a 0.10% gain. Investors remain confident in large public sector banks due to their strong balance sheets and improving credit growth.
Foreign Institutional Investors (FIIs) and Domestic Trends
Foreign Institutional Investors (FIIs) turned cautious again. Many of them continued to pull out money from Indian equities after the recent market rally and growing uncertainty in global trade policies. However, data shows that FIIs still invested ₹3,839 crore in Indian stocks during the first two weeks of July. This trend shows mixed signals as global investors weigh risks against India’s long-term growth potential.
On the domestic front, mutual funds and retail investors continued to show interest in select midcap and defensive sectors. They increased exposure to pharma, auto, and consumer stocks, which generally perform well in volatile environments.
Volatility on the Rise
The India VIX, which measures market volatility, jumped by nearly 3%. This rise indicates growing fear in the market, as investors prepare for sudden swings in index values. The VIX has been rising consistently for the past week, showing that traders expect short-term pain before any meaningful recovery.
IPO Market Stays Hot
Despite weakness in the secondary market, the Indian Initial Public Offering (IPO) market remained active. So far, companies have raised nearly $6.7 billion through IPOs in 2025, surpassing the total figure for 2024.
The most recent public issue came from Smartworks Coworking, which ended with a 4.15 times subscription. Analysts expect strong listing gains when the stock hits the market on July 17. The IPO pipeline remains strong with upcoming issues from companies like Tata Capital, Groww, and Meesho, keeping investor interest alive in the primary market.
Global Cues Remain Negative
On the global front, concerns about fresh tariffs from the United States on imports from the European Union and Mexico created negative sentiment. These developments added pressure on emerging markets like India. Traders also kept a close eye on oil prices, which continued to move higher due to renewed tensions involving Russia and Ukraine.
Rising crude prices can increase India’s import bill and worsen inflation, affecting corporate margins and consumer demand.
Technical View and Market Outlook
Technical analysts believe that the Nifty 50 is approaching a crucial support zone near 25,000. If the index holds this level, markets could see a short-term bounce. However, if it breaks this level decisively, further correction may follow.
Experts suggest that investors should adopt a cautious approach and avoid aggressive positions in the short term. The focus should remain on quality stocks, particularly in midcap, pharma, auto, and consumer sectors.
Markets may consolidate for a few sessions as investors wait for more clarity on:
-
Quarterly earnings from companies like HCL Tech
-
Final outcome of the Jane Street probe
-
Inflation data from India and the United States
Conclusion
The Indian stock market witnessed a sharp yet manageable decline on July 14, 2025. Global risks, weak IT results, and regulatory investigations created a wave of uncertainty. Still, resilience in midcaps, positive FII inflows, and robust IPO activity provided a silver lining.
Investors should stay alert, monitor global and domestic events, and follow a disciplined investment approach. A healthy correction often sets the stage for the next rally, but patience and caution remain essential in such turbulent times.
Also Read – Top 10 NFT Projects That Didn’t Die
