Sensex & Nifty Hit Session Lows as Axis Bank’s Weak Q1 Erodes Market Sentiment
Sensex and Nifty drop to intraday lows on July 18, dragged by a ~6% slump in Axis Bank shares after disappointing Q1 results. Banking sector underperforms despite positive global cues
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On July 18, 2025, the Indian markets saw a subdued session as the Sensex fell approximately 567 points, slipping to around 81,692, while the Nifty retreated 163 points to 24,948 by midday—breaching the crucial 25,000 mark.
Axis Bank took a heavy hit, plunging nearly 6% following a surprise dip in quarterly profits due to rising non-performing assets and margin pressure—dragging the Nifty Bank and Private Bank indices lower . Sector-wide weakness extended to insurance and NBFC stocks, further weighing on market sentiment.
Broader market tone remained cautious:
Foreign Institutional Investors (FIIs) recorded significant outflows in July.
Uncertainty persisted over U.S. Federal Reserve policy and geopolitical developments.
Oil price inflation and a Citi downgrade on India’s outlook added further negativity.
Bright spots amid the slump:
Wipro bucked the trend with ~3% gains post a strong Q1 performance.
Metal and media stocks offered limited support, though their impact was not enough to offset banking losses.
Outlook: Analyst sentiment points to continued short-term volatility with market structure mirroring a "liquid oxygen" trap—neither rising nor falling sharply. Investors are keenly awaiting improved corporate earnings in the second half of FY26 for sustained momentum.
