Welcome to a fresh episode of ET Market Watch, where we bring you the latest news from the world of stock markets every single day. Let’s get to it.
Markets extended losses today as multiple headwinds weighed on investor sentiment. The Sensex dropped 572 points, closing at 80,891, and the Nifty fell 156 points, ending at 24,680.
That’s nearly ₹4.9 lakh crore in market cap wiped out in a single session.
Here are 5 key reasons behind today’s slide:
1. India–US Trade Talks Stalled
Trade negotiations between India and the US have hit an impasse, mainly over tariffs on dairy and agricultural goods.
While the US struck a framework agreement with the European Union over the weekend, India’s deal still hangs in limbo.
That’s hurting investor confidence and raising concerns about India’s global trade momentum.
2. Weak Q1 Earnings, Led by Kotak Bank
Kotak Mahindra Bank plunged 7.3% today after posting a drop in quarterly profit.
Gross NPAs rose to 1.48%, margins narrowed to 4.65%, and overall asset quality weakened.
This adds to earlier disappointments from Axis Bank and points to rising pressure in the banking sector.
3. TCS Layoffs Spook IT Sector
TCS shares dropped 1.6% after it announced layoffs of 12,000 employees, or 2% of its global workforce.
This is not about AI replacing jobs, it’s about weak demand and internal realignment.
The Nifty IT index closed 0.7% lower, with Wipro, HCL Tech, and Infosys also in the red.
IT continues to be 2025’s worst-performing sector, down nearly 24% from peak.
4. FIIs Continue to Sell
Foreign investors sold ₹1,979 crore worth of equities today, continuing their exit for the fifth straight session.
Last week alone, they pulled out over ₹13,500 crore.
DIIs tried to cushion the fall with ₹2,100 crore in purchases, but the pressure remains.
5. Technical Breakdown
Technically, the Nifty slipped below key support at 24,700.
It failed to hold above the 50-day EMA, while RSI signals remain negative.
Analysts warn of further downside toward 24,550, unless the index breaks back above 24,800–24,950.
So, a mix of weak earnings, global trade uncertainty, tech layoffs, FII selling, and technical pressure drove the market lower today.
Will this downward trend continue, or can domestic flows and strong earnings from select banks provide support?
We’ll be tracking that closely, right here on ET Market Watch.
Thanks for tuning in.
This is Neha Vashishth, signing off for today.