Why Indian Stock Market Is Down Today? From Weak Q1 Results to India-US Trade Deal, Know Likely Reasons As Sensex and Nifty 50 Witness Downtrend for 3 Consecutive Weeks

Mumbai, July 18: Why market is down today? Investors, traders, and stock market enthusiasts are looking online to find answers to this question as the Indian stock market witnessed a fall for three consecutive weeks. Today, July 18, soon after the stock market opened for business, equity benchmark indices Sensex and Nifty declined in initial trade. Foreign fund outflows and a muted start to the earnings season dragged the decline. During today’s early trade, the 30-share BSE Sensex declined by 185.67 points to 82,073.57, while the 50-share NSE Nifty dropped 45.4 points to 25,066.05.

According to a report in Live Mint, stock market benchmarks Sensex and Nifty 50 have been witnessing a downtrend for three consecutive weeks. In the last 21 days, the Sensex fell more than 2,400 points or nearly three per cent, while the Nifty 50 declined by around three per cent. It is reported that the downturn in Indian stock markets is most likely driven by selling pressure in banking and telecom stocks. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said that the country has been underperforming most markets in July so far with a dip of 1.6 per cent in Nifty. Markets Decline in Early Trade Dragged by Foreign Fund Outflows, Selling in Axis Bank.

“A significant contributor to the decline is the selling by FIIs,” he added. Likely reasons why the Indian stock market has been falling for consecutive weeks include weak Quarter 1 earnings, a trade deal between the US and India, and foreign capital outflow, among others. One likely reason for the stock market’s fall is weak Q1 earnings, including Axis Bank’s latest financial results, which have fallen short of market expectations. Another reason why the share market has been tumbling for the past three weeks is the imminent US-India trade deal.

Reports suggest that India is seeking a favourable tariff rate from the US; however, a final deal is awaited. Besides, the uncertainty on the tariff to be imposed on India, if any, is also keeping investors and traders cautious. While domestic investors continue to support the market, foreign portfolio investors (FPIs) are making heavy profit bookings, thus restricting the stock markets from sustaining their intermittent gains. Stocks To Buy or Sell Today, July 18, 2025: Hitachi Energy India, NTPC, HCL Technologies Among Shares That May Remain in Focus on Friday.

It is reported that FPIs sold Indian equities worth INR 17,330 crore in the cash segment so far in July 2025. According to exchange data, foreign institutional investors (FIIs) offloaded equities worth INR 3,694.31 crore on Thursday, July 17. In addition to these reasons, technical factors and the stretched valuation of the market have also contributed to the Indian stock market falling continuously for the third week.

(The above story first appeared on Pune Media on Jul 18, 2025 01:17 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website Pune Media.com).

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