New Delhi, August 1 (H.S.): July witnessed a significant downturn in the domestic stock market, with the Sensex plummeting over 2,400 points and the Nifty losing around 750 points. The market capitalization of companies listed on the BSE decreased by ₹11.44 lakh crore, the largest loss in a single month since February 2025. This decline is attributed largely to heavy selling by foreign investors, who sold more than ₹47,600 crore in stocks during the month. Foreign investors' total purchases amounted to ₹84,138.54 crore, while sales reached ₹3,31,805.22 crore, leading to a net sell-off of ₹47,666.68 crore.

In prior months, foreign investors had been net buyers, with positive net purchases recorded from March to June, indicating a shift in sentiment. The resultant pressure from selling contributed to a 3.50 percent decline in both the Sensex and Nifty, making the Indian stock market the worst-performing among the top ten global markets in July.

Experts noted that weak corporate results for Q1 ended in June and concerns about U.S. tariffs and trade uncertainties further dampened investor confidence. Additionally, caution regarding high valuations, rising volatility, and unfavorable derivatives market signals intensified the downturn, manifesting in declining trading activity.

Hindusthan Samachar / Jun Sarkar