The key equity indices ended lower for the week, pressured by disappointing earnings, global uncertainty, and sustained foreign institutional investor (FII) outflows. The week began on a strong note, buoyed by upbeat Q1 results from HDFC Bank and ICICI Bank, which lifted banking and financial stocks. However, market momentum faded midweek as weaker-than-expected IT earnings and stalled U.S.-India trade talks ahead of the August 1 deadline weighed on sentiment. As a result, the Nifty ended below the 24,850 mark, with broader indices underperforming sharply.
In the week ended on Friday, 25 July 2025, the S&P BSE Sensex tanked 294.64 points or 0.36% to settle at 81,463.09. The Nifty 50 index slumped 131.4 points or 0.53% to settle at 24,837. The BSE Mid-Cap index shed 1.46% to close at 45,978.04. The BSE Small-Cap declined 1.88% to end at 53,906.46.
Weekly Index Movement:
The domestic equity benchmarks ended higher on Monday, reversing a two-day decline. Gains were driven largely by robust Q1 earnings from major private lenders HDFC Bank and ICICI Bank, which helped offset persistent global trade challenges. The S&P BSE Sensex advanced 442.61 points or 0.54% to 82,200.34. The Nifty 50 index added 122.30 points or 0.49% to 25,090.70.
The key equity benchmarks closed mostly flat on Tuesday, registering slight losses as investor sentiment remained cautious. The S&P BSE Sensex declined 13.53 points or 0.02% to 82,186.61. The Nifty 50 index fell 29.80 points or 0.12% to 25,060.90.
The domestic equity indices ended with strong gains on Wednesday. The S&P BSE Sensex advanced 539.83 points or 0.66% to 82,726.64. The Nifty 50 index added 159 points or 0.63% to 25,219.90.
The key equity benchmarks ended in the red on Thursday. The S&P BSE Sensex slumped 542.47 points or 0.66% to 82,184.17, while the Nifty 50 fell 157.80 points or 0.63% to 25,062.10.
The domestic equity benchmarks ended with major losses on Friday. The S&P BSE Sensex, tanked 721.08 points or 0.88% to 81,463.09.
India-UK Deal:
India and the UK signed a landmark Free Trade Agreement on Thursday, aiming to boost annual bilateral trade by $34 billion. Under the agreement, India will reduce tariffs on 90% of goods imported from the UK, while the UK will eliminate duties on 99% of Indian exports. The pact is expected to benefit key sectors such as leather, textiles, electronics, and software, while also attracting fresh investments between the two nations.
Economy:
The HSBC India Manufacturing PMI climbed to 59.2 in July 2025 from 58.4 in the previous month, according to preliminary estimates. The latest figure signaled a robust expansion in manufacturing activity and marked the highest reading in nearly 17-and-a-half years, highlighting the sector's continued momentum.
The HSBC India Services PMI declined to 59.4 in July 2025 from 60.4 in the previous month, preliminary readings showed. The latest figure marked a slowdown from the fastest expansion in ten months, as output growth eased compared to the prior month.
The HSBC India Composite PMI fell to 60.7 in July 2025 from a final 61.0 in June, which was a 14-month high, flash data showed. Despite the slight dip, the latest result remained well above its long-run average of 54.8. Services activity rose at a slightly slower pace, though still robust by historical standards, while manufacturing output grew the most since April 2024.
India's core industries, which include eight key sectors, grew by 1.7% in June 2025, improving from a revised growth rate of 1.2% in May but significantly lower than the 5% growth recorded in June 2024.
These eight core industries account for 40.27% of the total weight in the Index of Industrial Production (IIP).
India's forex reserves fell $3.04 billion to $699.74 billion for the week ending July 4, data by the Reserve Bank of India showed on Friday.
For the week ending on July 4, foreign currency assets, a major component of the reserves, decreased $3.53 billion to $591.29 billion.
Gold reserves were up by $342 million to stand at $84.5 billion during the week, the RBI said.
The special drawing rights (SDR) were up $39 million to $18.86 billion.
As per the data, India's reserve position with the IMF was up $107 million at $4.73 billion in the reporting week.
Stocks in Spotlight:
Reliance Industries (RIL) fell 5.73%. The company's profit after tax and share of profit/(loss) of associates & JVs increased by 76.5% year-on-year (Y-o-Y) to Rs 30,783 crore in Q1 June 2025. The company's gross revenue increased by 6% Y-o-Y to Rs 273,252 crore in Q1 June 2025. EBITDA increased by 35.7% Y-o-Y to Rs 58,024 crore. Other income includes Rs 8,924 crore, being proceeds of profit from sale of listed investments. Excluding proceeds of profit from sale of listed investments, EBITDA increased by 15% and PAT was up 25% Y-o-Y.
ICICI Bank rose 3.61%. The bank reported a standalone net profit of Rs 12,768.21 crore in Q1 FY26, up 15.45% as against Rs 11,059.11 crore posted in Q1 FY25. Total income increased 11.85% year on year (YoY) to Rs 51,451.81 crore in Q1 FY26.
HDFC Bank rose 2.40%. The bank's profit after tax (PAT) for the quarter ended June 2025 stood at Rs 18155.21 crore, a growth of 12.24% over the quarter ended June 2024. Net interest income (interest earned less interest expended) for the quarter ended June 2025 grew by 5.4% to Rs 31,440 crore from Rs 29,840 crore for the quarter ended June 2024. The board declared a special interim dividend of Rs 5 per equity share of Re 1, pre-bonus issuance. It also approved issuance of bonus shares in the proportion of 1:1.
Eternal zoomed 20.36%. The company’s quick commerce business, Blinkit, surpassed the food delivery segment in revenue during Q1 FY26. Eternal's quick commerce segment (Blinkit) Q1 revenue stood at Rs 2,400 crore (+155% YoY), surpassing the food ordering and delivery segment revenue of Rs 2,261 crore (+16.43% YoY).
Eternal reported a 90.12% decline in consolidated net profit to Rs 25 crore on a 70.4% jump in revenue from operations to Rs 7,167crore in Q1 FY26 over Q1 FY25. Profit before tax (PBT) dropped 63.18% to Rs 88 crore from Rs 239 crore in Q1 FY25. The decline in profit was attributed to continued investments and subsidy expenses aimed at expanding the Blinkit business.
Infosys dropped 4.47. The company’s consolidated net profit declined 1.59% to Rs 6,921 crore despite a 3.31% increase in revenue from operations to Rs 42,279 crore in Q1 FY26 over Q4 FY25. On a year on year (YoY) basis, the company’s net profit and revenue jumped 8.68% and 7.54%, respectively in Q1 FY26.
The company’s total contract value (TCV) of large deal wins was $3.8 billion in Q1 FY26, with a net new of 55%. The company’s total clients stood at 1,861 as on 30th June 2025 as compared with 1,867 clients as on 30th June 2024. The IT major has informed that the voluntary attrition rate (LTM – IT Services) came in at 14.4% in Q1 FY26, up from 14.1% in Q4 FY25 and 12.7% in Q1 FY25.
UltraTech Cement shed 2.07%. The cement major reported a 48.91% year-on-year (YoY) rise in consolidated net profit to Rs 2,225.90 crore for Q1 FY26, driven by strong operating performance and lower energy costs. Revenue from operations grew 13.06% YoY to Rs 21,275.45 crore.
Shriram Finance tanked 4.64%. The NBFC’s standalone net profit jumped 8.84% to Rs 2,155.73 crore on a 20.11% increase in total income to Rs 11,541.76 crore in Q1 FY26 over Q1 FY25.
Cipla rallied 3.30%. The company reported 10.18% increase in consolidated net profit to Rs 1,297.62 crore on a 3.93% rise in total revenue from operations to Rs 6,957.47 crore in Q1 FY26 over Q1 FY25.
SBI Life Insurance Company rose 2.61%. The life insurer reported strong performance for the quarter ended June 2025 (Q1-FY26).
The company's profit after tax (PAT) rose 14.41% year-on-year to Rs 594.37 crore in Q1-FY26, driven by a healthy uptick in premium collections and a surge in embedded value. Gross Written Premium (GWP) for the quarter stood at Rs 17,810 crore, marking a 14% jump from Rs 15,570 crore in Q1-FY25.
Bajaj Finserv fell 2.16%. The foreign brokerage downgraded the stock from "Overweight" to "Neutral."
The company’s consolidated net profit jumped 26.60% to Rs 5,329.17 crore on 12.61% increase in total income to Rs 35,451.34 crore in Q1 FY26 over Q1 FY25.
Coforge tumbled 9.12%. The company has reported 4.8% decline in consolidated net profit (continuing business) to Rs 247.2 crore despite an 8.2% increase in revenue to Rs 3,689 crore in Q1 FY26 as compared with Q4 FY25.
The company’s order intake for the quarter $507 million. The executable order book over next twelve months at $1.55 billion, a 46.9% YoY increase. The company signed 5 large deals in Q1 FY26 across North America, UK, and APAC.
Persistent System slumped 7.20%. The IT firm has reported 7.37% jump in consolidated net profit to Rs 424.94 crore on 2.82% increase in revenue from operations to Rs 3,333.59 crore in Q1 FY26 over Q1 FY25. The order booking for the quarter ended on 30th June 2025, was at $520.8 million in total contract value (TCV) and at $385.3 million in annual contract value (ACV) terms.
Nestle India dropped 7.92%. The company’s standalone net profit declined 11.70% to Rs 659.23 crore in Q1 FY26, compared with Rs 746.60 crore posted in Q1 FY25. However, revenue from operations jumped 5.86% to Rs 5,096.2 crore in Q1 FY26, compared to Rs 5,096.2 crore in Q1 FY25.
Hexaware Technologies slumped 14.33%. The company's consolidated adjusted profit rose 7.7% to Rs 386.30 crore in Q2 June 2025 (Q2CY25) over Q1 March 2025 (Q1CY25). Consolidated revenue rose 1.6% QoQ to Rs 3260.70 crore in Q2CY25.
Global Markets:
In China The People’s Bank of China (PBoC) kept its key loan prime rates unchanged, maintaining the 1-year rate at 3.0% and the 5-year rate at 3.5%.
In Japan The au Jibun Bank Manufacturing PMI fell to 48.8 in July's preliminary reading, down from 50.1 in June and below expectations of 50.2, indicating a mild contraction in factory activity.
Conversely, the Services PMI rose to 53.5 from 51.7, signaling continued strength in the services sector. Tokyo’s consumer inflation data for July showed a slightly larger-than-expected easing in prices.
However, core inflation remained above the Bank of Japan’s 2% target, leaving uncertainty around future interest rate decisions.
In United Kingdom Britain’s unemployment rate rose to 4.7% in the three months to May, marking its highest level since 2021.