New Delhi: Indian equity benchmarks began the week on a sluggish note, pulled down by a combination of global trade anxieties and disappointing earnings from Kotak Mahindra Bank. The NSE Nifty 50 slipped by 0.22% to open at 24,782, while the BSE Sensex declined 0.2% to 81,300. This marks the fourth consecutive weekly downturn for Indian markets, reflecting investor caution amid growing global and domestic uncertainties.
One of the main triggers behind the subdued mood was Kotak Mahindra Bank’s first-quarter earnings, which fell significantly short of expectations. The bank reported a sharp 47.5% drop in net profit on a standalone basis. This unexpected decline was primarily due to increased provisioning and tighter net interest margins. The results sent Kotak’s stock tumbling by over 6%, dragging down the private banking index and adding pressure on the overall financial sector. Analysts have since trimmed their target prices for the stock, further shaking investor confidence.
The broader sentiment was also weighed down by uncertainty over the delayed U.S.–India trade agreement. Investors are worried about the lack of progress in negotiations, especially as the U.S. is expected to impose new tariffs on Indian dairy and agricultural goods by August 1. The stalemate, if prolonged, could impact sectors ranging from food exports to IT services, both of which are heavily reliant on U.S. trade ties. This looming threat has dampened optimism in domestic equity markets despite a recent breakthrough in U.S.–EU trade talks that had buoyed global indices.
Across sectors, the picture remained mixed but leaned toward the negative. Out of the 13 major sectoral indices, nine opened in the red. Mid-cap and small-cap stocks also declined slightly, falling by 0.2% and 0.3% respectively. Private sector banks suffered the most, dropping nearly 1%, while the broader financial index lost about 0.5%. The ripple effect of Kotak’s results was clearly visible across the banking space, with investors adopting a wait-and-watch approach until more quarterly results are released.
Amid the gloom, a few bright spots did emerge. Bank of Baroda shares gained after posting encouraging quarterly results that highlighted strong loan growth and improved asset quality. In the real estate sector, Sobha Ltd. recorded a notable rise in profits, benefiting from sustained demand in the luxury housing market. These gains, however, were not enough to lift overall market sentiment.
Looking ahead, analysts believe that August could prove pivotal for Indian equities. With July already poised to be the worst-performing month for the Nifty since 2019, the market’s near-term direction will depend on several factors. These include the resolution of trade negotiations with the U.S., the performance of large-cap stocks in the ongoing earnings season, and the behavior of foreign institutional investors who have been steadily pulling out capital in recent weeks.
In sum, the Indian stock markets remain under pressure, caught in a web of corporate challenges and geopolitical uncertainties. While some sectors show resilience, broader recovery may hinge on policy clarity and strong financial disclosures in the days to come.