Stock Market Tanks for Second Straight Day: Sensex Sheds 786 Points, Nifty Closes Below 25,000
Mumbai, July 25, 2025 Indian stock markets witnessed a sharp decline for the second consecutive day, driven by global uncertainties, weak Q1 earnings, and persistent foreign investor selling. The Sensex plunged 786.48 points intraday, eventually closing 721.08 points lower at 81,463.09, while the Nifty slipped 225.10 points to close at 24,837, falling below the crucial 25,000 mark.
Over the last two sessions, the Sensex has shed a total of 1,286 points, eroding investor wealth by a staggering ₹8.67 lakh crore.
Small-Cap Stocks Face Heavy Selloff, Lower Circuits Hit 205 Stocks
The broader markets were hit even harder, with BSE Smallcap Index plummeting 1,033.54 points. Out of the small-cap universe, 839 stocks ended in the red, while 205 stocks hit lower circuits. Only 129 stocks closed in the green. Panic selling dominated the day as investors moved away from riskier assets amid heightened volatility.
Sectorally, heavy selling was seen across the board:
Energy (-2.11%)
Power (-2.36%)
IT (-1.65%)
Auto (-1.29%)
Telecom (-1.28%)
Metals (-1.64%)
Capital Goods (-1.83%)
Consumer Durables (-1.09%)
Oil & Gas (-2.11%)
Technology (-1.17%)
Multiple Headwinds Weighing on Sentiment
The market downturn is being attributed to a mix of global and domestic factors. Uncertainty over the India US trade deal, weak corporate earnings, and a volatile rupee have shaken investor confidence. Additionally, the India VIX (Volatility Index) spiked 7% during early trading, signaling rising fear in the market.
Foreign institutional investors (FIIs) have continued their selling spree, adding to the bearish momentum.
Investor Wealth Erosion Hits ₹8.67 Lakh Crore
With the sharp two-day correction, investor wealth has eroded by ₹8.67 lakh crore, marking one of the steepest drops in recent times. Analysts caution that until clarity emerges on earnings and global cues stabilize, market volatility is likely to persist.
Investors are advised to tread cautiously, maintain a diversified portfolio, and avoid panic-driven decisions amid this turbulent phase.
