The Indian equity markets kicked off the week on a positive note, largely shaking off the bearish sentiment that dominated Friday's session. Key benchmark indices, the Nifty and Sensex, posted healthy gains, with the Nifty reclaiming the crucial 25,000 mark. Investor sentiment was bolstered by a strong performance from banking heavyweights, positive Q1 earnings from select companies, and some stabilisation in global cues, despite ongoing FII selling pressure. Most sectors saw buying interest, with financial services, auto, and metal leading the charge.
Table of Contents
- Key Market Indices Performance
- Broader Market Shows Mixed Trends
- Sector-wise Performance Highlights
- Top Stock Market News of the Day
- FII and DII Activity This Week
- IPOs, Listings, and Market Buzz
- Top Gainers (Intra-day July 21, 2025)
- Top Losers (Intra-day July 21, 2025)
- Economic and Global Factors
- What to Watch in the Coming Days
- Final Takeaway
Indian equity benchmark indices settled higher on Monday, July 21, 2025, as investor confidence saw a revival. TheBSE Sensex surged by 442.61 points, a gain of 0.54%, to close at 82,200.34.
TheNSE Nifty50 settled at 25,090.70 levels, up by 122.30 points (0.49%), notably bouncing back above the 25,000 psychological mark.
While the benchmark indices showed strong performance, the broader market presented a mixed picture. The BSE Midcap index rose 0.5%, indicating some strength in the mid-sized companies, while the Smallcap index closed flat, reflecting a more cautious approach in the smaller cap segment. This suggests selective buying rather than a broad-based rally.
Sectoral performance on Monday saw a significant shift from Friday's trend. The Nifty Financial Services (FinNifty) sector emerged as a top gainer, rising 1.23%, primarily driven by strong performances from ICICI Bank and HDFC Bank. Other major sectors that closed in the green included Auto, Capital Goods, Private Banks, Power, Realty, and Metal stocks.
In contrast, sectors like IT, PSU Banks, Oil & Gas, and FMCG stocks came under some pressure, indicating profit booking or continued cautiousness in these segments. The India VIX, a key gauge of market volatility, showed some stability, reflecting a slight easing of immediate market apprehension.
Several key domestic and global news events influenced market movements:
- Positive Q1 Earnings: The Q1 earnings season continued to unfold, with some notable positive surprises. HDFC Bank and ICICI Bank posted strong Q1 results, which were well-received by investors, fueling the rally in financial stocks. Eternal (formerly Zomato) reported a consolidated net profit of ₹25 crore for Q1 FY26 (compared to a loss last year), with a significant increase in total income, leading to a surge in its shares. Mastek surged over 7% on robust Q1 PAT and revenue growth.
- Reliance Industries (RIL) Performance: RIL's shares dropped 3.24% despite reporting a consolidated net profit that rose significantly due to a one-time gain from the sale of its stake in Asian Paints. However, its core revenue growth slowed, which appeared to be the primary driver of the stock's decline.
- FII Selling Continues: Foreign Institutional Investors (FIIs) remained net sellers for the month of July, with cumulative sales exceeding ₹10,775 crore so far, indicating continued concerns over elevated valuations in India and global uncertainties.
- Rupee Weakness: The Indian rupee opened weaker, dropping 20 paise to 86.36 against the US dollar in early trade. This fall was attributed to the continued strength of the US dollar globally and the decline in domestic equity indices in early trade. Clarity on new US tariff rules on Indian imports, expected on August 1st, is being awaited.
- Anthem Biosciences IPO Listing: Anthem Biosciences made a strong debut, listing at a 26.8% premium to its issue price, showcasing continued investor appetite for new offerings.
The activity of Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) continued to show a clear divergence:
- Foreign Institutional Investors (FIIs) remained net sellers on July 18th, offloading equities worth ₹374.74 crore. While this figure is lower than previous days, FIIs have been persistent net sellers in July month-to-date, contributing to the overall market volatility. Their sustained selling reflects global uncertainties and potentially more attractive valuations in other markets.
- Domestic Institutional Investors (DIIs) continued to provide crucial support to the market by remaining strong and consistent buyers. On July 18th, they bought equities worth ₹2,103.51 crore. Their robust buying has been a key factor in cushioning the domestic markets against sharper falls and driving localised rallies, highlighting the increasing resilience of the Indian market driven by domestic liquidity and investor confidence.
The primary market continues to be active, despite broader market sentiment:
- Anthem Biosciences IPO made a strong listing debut today, July 21, 2025, after its IPO closed on July 16, 2025. It listed at a significant premium, reflecting strong investor demand.
- Indiqube Spaces Limited IPO is set to open on July 23, 2025, aiming to raise ₹700 crore. The price band is ₹225 to ₹237 per share, with listing expected on July 30, 2025.
- GNG Electronics Limited IPO is also scheduled to open on July 23, 2025, with a target to raise ₹460.43 crore. The price band is between ₹225 and ₹237 per share, and listing is expected on July 30, 2025.
- Other IPOs, includingBrigade Hotel Ventures (opening July 24) and Shanti Gold International (opening July 25), are lined up for this week.
- Eternal
- Current Market Price: ₹271.70
- Percentage Change: +5.64%
- Reasons: Strong Q1 results, swinging to a net profit for the quarter and reporting robust revenue growth, particularly from its quick-commerce segment. This indicates a significant turnaround in its financial performance, attracting strong investor interest.
- ICICI Bank
- Current Market Price: ₹1,465.80
- Percentage Change: +2.81%
- Reasons: Posted strong Q1 results, which were well-received by the market. This performance, coupled with a general rebound in the financial services sector, fueled significant buying interest in the stock.
- HDFC Bank
- Current Market Price: ₹2,000.50
- Percentage Change: +2.20%
- Reasons: Delivered solid Q1 results, contributing to the positive sentiment across the banking sector. Brokerages and analysts reiterated positive outlooks, expecting stronger growth in the latter half of FY26 and highlighting good fundamentals despite past merger integration concerns.
- HDFC Life
- Current Market Price: ₹752.30
- Percentage Change: +1.73%
- Reasons: Recovered some losses from the previous session, benefiting from the overall improved sentiment in the financial sector. Investor confidence in life insurance companies, particularly strong brands, tends to return as market stability increases.
- M&M
- Current Market Price: ₹3,246.70
- Percentage Change: +1.70%
- Reasons: Part of the broader auto sector's robust gains on the day. Improved market sentiment and potential positive outlook for the auto industry contributed to its upward movement.
- Reliance Industries (RIL)
- Current Market Price: ₹1,428.60
- Percentage Change: -3.21%
- Reasons: Despite reporting a consolidated net profit that rose significantly (driven by a one-time gain from the sale of its Asian Paints stake), the core operational performance in key segments like Oil-to-Chemicals (O2C) and Retail fell short of analyst expectations. Brokerages highlighted slower-than-expected core revenue growth and missed EBITDA estimates in these crucial divisions, leading to profit booking.
- Wipro
- Current Market Price: ₹260.35
- Percentage Change: -2.47%
- Reasons: Despite positive deal momentum and a year-on-year increase in net profit in its Q1 results (reported on July 18), Wipro saw a sequential decline in profit and revenue. The stock's fall on Monday could be attributed to investors digesting the sequential weakness and overall cautious sentiment persisting in the IT sector, perhaps leading to profit booking after a brief rally post-results.
- IndusInd Bank
- Current Market Price: ₹858.80
- Percentage Change: -1.29%
- Reasons: While the broader private banking sector saw gains today, IndusInd Bank faced selling pressure. This could be due to specific analyst downgrades or concerns about its financial performance as highlighted by a significant Q4 FY25 loss. The stock's higher volatility (beta of 1.71) compared to the market could also amplify movements.
- Eicher Motors
- Current Market Price: ₹5,558.00
- Percentage Change: -1.24%
- Reasons: Despite the auto sector showing overall strength, Eicher Motors saw a decline, possibly due to profit booking after recent gains or specific cautious outlooks from brokerages on its near-term performance. While the company's long-term fundamentals are strong, intraday fluctuations can be influenced by short-term trading sentiment.
- HCL Technologies
- Current Market Price: ₹1,530.40
- Percentage Change: -1.19%
- Reasons: Similar to Wipro, HCL Tech's decline reflects a broader cautiousness or profit booking in the IT sector despite some resilience shown earlier. While the company's Q1 results were awaited (or had just been announced with mixed reception), the overall market mood towards IT services, especially after Friday's broader tech sector weakness, might have influenced this decline.
Monday's performance showcased a dynamic market, with banking heavyweights leading a strong recovery, while some of Friday's relative gainers like IT stocks came under pressure.
Several broader economic and global factors influenced market sentiment:
- RBI Policy Stance: The market continues to factor in the RBI's accommodative stance, with expectations of a dovish approach reinforced by easing inflation data.
- India's Inflation: June 2025's retail CPI inflation cooled to 2.10% (provisional) YoY. Market awaits July's CPI data on August 12, 2025.
- Crude Oil Prices: Brent crude futures held near $69.28 per barrel on Monday. While slightly down from earlier highs, concerns over input costs for Indian industries persist due to geopolitical tensions in Iraq.
- Global Factors: Mixed performance in US markets on Friday, with investor focus on upcoming US corporate earnings and Fed Chair Jerome Powell's remarks later in the week for cues on interest rate outlooks. US inflation for June stood at 2.7% YoY. The US dollar remained strong, adding pressure to the rupee.
As the week progresses, investors will closely monitor several key events:
- Upcoming Economic Data: Critical US data points, including Existing Home Sales (June) on July 23rd, Initial Jobless Claims, and S&P Global Manufacturing PMI (Preliminary) for July, will be watched for their global market impact.
- Q1 Earnings Season: The earnings season is in full swing, with 286 companies scheduled to report June quarter results this week. Major Nifty firms like Infosys, Eicher Motors, UltraTech Cement, Bajaj Finance, Tata Consumer Products, Dr. Reddy's, Cipla, Kotak Mahindra Bank, and SBI Life Insurance are set to announce results.
- Trade Negotiations: Market participants remain cautious as they await developments in India-US trade negotiations and clarity on new US tariff rules on Indian imports.
- Investor Expectations: While the near-term outlook has shifted to cautious for some, a potential upward bias is expected in the medium term, supported by better rural and healthcare performance. The Indian economy is projected to grow at 6.5% in FY26.
Monday, July 21, 2025, marked a positive start to the week for Indian equity benchmarks, driven primarily by strong Q1 earnings from financial sector heavyweights and a rebound in investor sentiment. The Nifty reclaimed 25,000, and while broader markets showed mixed trends, the overall mood was cautiously optimistic.
Despite persistent FII outflows and rupee weakness, robust domestic liquidity provided by DIIs continues to offer crucial support. Investors are advised to remain vigilant, keep an eye on upcoming earnings reports, and carefully assess global economic developments while focusing on fundamentally sound companies for long-term investment.