Red Monday: Sensex Falls 572 Points, Nifty Breaks Below 24,700 — Bajaj Finance, Airtel Lead the Slide

It was a tumultuous beginning to the week for Indian markets. On Monday, July 28, the Sensex fell 572 points while the Nifty dipped below the psychological mark of 24,700. The selling was not only wide-based — it was precipitous and deep, eroding almost ₹5 lakh crore of investor wealth in a single trading session.

A Quick Glimpse: What Happened?

• Sensex closed down 572 points at 80,891

• Nifty 50 dropped 156 points to close at 24,680

• Bajaj Finance and Bharti Airtel led the pack of losers, declining almost 4% and 3% respectively.

• Smallcap and Midcap indices also followed suit, losing more than 1%

So, why was this sharp correction? Let's break down the key reasons for the carnage, sector-wise damage, and what it implies for investors in the future.

What Triggered This Market Fall?

1. Stalled India–US Trade Talks

The threat of an August 1 tariff deadline is beginning to spook world markets. For India, uncertainty in trade with the U.S. is causing discomfort to investors concerned with export disruption and tariff hikes. It has hit sentiment in industries linked to international trade — particularly IT and pharma.

2. Weaker Corporate Earnings

We’re knee-deep in Q1 FY26 earnings season — and it’s not looking good for some major names. Bajaj Finance reported muted numbers, leading to a 4% crash in its share price. A few banks and IT majors have also shown signs of slowing growth or margin compression. Investors are reacting fast, with many choosing to book profits and exit.

3. FIIs Turn Net Sellers Again

Foreign Institutional Investors (FIIs) offloaded more than ₹1,800 crore of Indian equities on Monday. Increasing U.S. yields, worldwide tensions, and trade uncertainty have urged FIIs to withdraw money from emerging markets — and India feels the pinch.

4. IT Sector Drag

Technology stocks are again facing stress. Despite laid-off and freezing-hiring situations still being the order of the day in worldwide companies, the growth scenario remains hazy. Analysts are distrusting near-term growth in the sector, pulling heavyweight titans like TCS, HCL Tech, and Infosys down.

5. Technical Resistance Breach

Market experts had already been cautioning of resistance levels around the 24,800–25,000 levels on Nifty. Once the level broke, it activated stop-losses and technical selling cues, contributing to the decline.

Sector-Wise Impact

Financials – The Biggest Drag

Bajaj Finance's 4% decline set the tone for the sector. Kotak Mahindra Bank, SBI, and ICICI Bank also turned red. Disappointing earnings and FII outflows pummeled the financial pack badly.

IT – Weak Demand, Weak Stocks

TCS, Infosys, Wipro, and HCL Tech continued to be sold. The sector has lagged this year and with no clear visibility on when global demand will rebound, investors are in a wait-and-watch mode.

Telecom – Bharti Airtel Tumbles

Bharti Airtel lost almost 3% following a bout of profit-taking and fears regarding ARPU (average revenue per user) growth. The stock was already on fire and now appears to be correcting from recent highs.

Oil & Energy – Mixed Bag

ONGC and Reliance traded mostly flat on the day, while global crude prices moved only marginally. Power Grid, however, managed to resist selling pressure and improve as well.

FMCG & Pharma – Some Relief Here

Stocks such as Hindustan Unilever, Asian Paints, and Cipla provided limited solace. Defensive buying was observed as markets dropped, with investors fleeing to safe havens.

Top Losers of the Day

Stock Change % Key Trigger

Bajaj Finance –4.0% Weak earnings, valuation fears

Bharti Airtel –2.9% Profit booking, slower growth forecast

HCL Tech –2.7% Weak IT demand indicators worldwide

Kotak Bank –2.3% Lousy Q1 margins, heavy FII outflow

Titan –2.1% Correction from overbought level

Investors Lose ₹4.9 Lakh Crore in One Day

The overall market capitalization of BSE-listed firms came down from ₹452.7 lakh crore on Friday to ₹447.8 lakh crore on Monday — a one-day washout of almost ₹5 lakh crore.

Retail investors, mutual funds, and short-term players were the worst hit, particularly those who had entered the markets very recently at higher levels.

What Are Analysts Saying?

The majority of market analysts are predicting short-term volatility. Some of their comments follow:

• Nirali Shah, Head of Equity Research at SAMCO:

"Healthy corrections are happening in highly overvalued segments. Earnings cannot sustain current valuations, hence some level of re-rating is on the cards."

• Ajit Mishra, SVP of Research, Religare Broking:

"It's advisable to steer clear of leveraged positions. Stick to defensive segments like FMCG and healthcare while volatility persists."

• Motilal Oswal Securities:

“Technically, if Nifty breaks 24,550, the next support is around 24,300. Investors should brace for choppy sessions this week.”

What Should Investors Do Now?

✅ If You’re a Long-Term Investor:

Don’t panic. Corrections are healthy, and if you’re investing for 5–10 years, these dips are great opportunities to accumulate quality stocks.

Stick with strong balance sheet companies — large-cap IT, private banks, pharma, and consumer goods.

Avoid:

• Highly leveraged smallcaps or momentum stocks

• Chasing rebounds in falling stocks without strong fundamentals

• Short-term F&O trades unless you’re experienced

Strategy:

• Use Systematic Investment Plans (SIPs) or staggered entries

• Keep some cash ready for deeper dips

• Track FII data and global cues regularly

What’s Next?

• Looking ahead, the following events may shape the direction of the markets:

• US Tariff Decision (Aug 1) – Clarity here could spark either a relief rally or further downside.

• Near Term Major Earnings – Infosys, Axis Bank, Tata Motors have not yet declared Q1 results.

• Monsoon Update – Any bad news on rains may affect agri and FMCG consumption.

• FII Action – Re-emergence of buying by FIIs may stabilize the markets.

• RBI Policy Meeting (Next Week) – Interest rate commentary will be scrutinized.

Last Thoughts

Red Mondays such as today try the nerves of every investor. But it is also in days like these that the greatest opportunities emerge. Market cycles have their ups and downs — the secret is to remain sane when panic sets in.

If your investment case remains sound, such corrections are not a cause to sell out — but to take a closer look at your watchlist. Stay informed, diversified, and calm as always.