Indian Equity Markets: Persistent Selling Pressure and Sectoral Declines
The Indian equity markets continued to face selling pressure, with NIFTY 50 recording its sixth consecutive weekly loss. Key sectors such as IT, Financials, and Real Estate were among the worst performers, while the Auto sector managed to post a slight gain.
Nifty 50Indian Equity MarketsFii OutflowsSectoral IndicesMarket BreadthReal EstateAug 11, 2025
NIFTY 50 — Another Week of Losses
Weekly Performance: -0.8%
The NIFTY 50 index continued its downward trend, losing 0.82% during the week. IT and Financials remained the key drags on the index. Adani Enterprises, Nestle, and Apollo Hospitals were among the top losers, while Hero Motocorp, Titan, and Tata Steel saw healthy rallies, gaining between 3% to 7% each. The market breadth in the index was marginally weak, with 23 stocks advancing and 27 declining. FII outflows, tariff uncertainty, and lackluster results from large-cap companies were the primary reasons for the continued weakness in the NIFTY.
NIFTY MIDCAP SELECT — Selling Pressure Persists
Weekly Performance: -1.3%
The NIFTY MIDCAP SELECT index also faced selling pressure, ending the week 1.28% lower. This marked the third consecutive weekly loss for the index. CoForge, Dixon, Ashok Leyland, and SRF were the bottom performers, declining by 4% to 6%. On the positive side, Cummins India and Lupin were among the top contributors, with gains of 6.67% and 2.7%, respectively. The overall market breadth was very weak, with 19 declines and only 6 advances. The NIFTY mid-cap index has underperformed the large-cap NIFTY in 4 of the past 5 weeks.
NIFTY IT — Sixth Consecutive Weekly Loss
Weekly Performance: -0.7%
The NIFTY IT index recorded another weekly loss, closing down 0.72%. This was the fifth consecutive weekly loss for the index. Despite this, market breadth showed some improvement compared to the previous week, with 5 of the index stocks closing in the green. Tech Mahindra, Tata Consultancy Services, and HCL Technologies were the prominent gainers, rising by 2.89%, 1.11%, and 1.63%, respectively. However, Infosys, Coforge, and Wipro were among the worst performers, declining by 3.16%, 5.83%, and 1.52%, respectively. The IT sector's performance was negatively impacted by lackluster earnings, continued FII selling, and concerns over the potential impact of AI on the demand for software programmers.
NIFTY BANK — Weakness Persists
Weekly Performance: -1.1%
The NIFTY BANK index ended the week with a loss of 1.10%. While the market breadth was not particularly bad, with 6 advances and 6 declines, losses at heavyweight private sector banks like ICICI Bank, HDFC Bank, Kotak Mahindra Bank, and Axis Bank led to the weak performance of the index. On the other hand, PSU banks such as State Bank of India (SBI), Bank of Baroda, Canara Bank, and Punjab National Bank saw gains ranging from 0.75% to 2%. The NIFTY BANK index has been one of the best performers year-to-date, but persistent FII outflows have affected its recent performance, with losses in 4 of the past 5 weeks.
NIFTY ENERGY — Weak Market Breadth Pulls the Index Down
Weekly Performance: -1.4%
The NIFTY ENERGY index declined by 1.4% for the week, marking its third consecutive weekly loss. The index was held back by a weak advance-decline ratio, with 26 stocks declining and only 12 advancing. Torrent Power, CG Power, and Coal India were notable exceptions, witnessing gains of 1.9% to 3.7%. Among the top losers were Thermax and wind turbine makers Inoxwind and Triveni Turbine, which fell by 8% to 13.4%. The NIFTY Energy index has declined in 4 of the past 5 weeks, with uncertainty related to steep tariffs on Russian-linked oil being a key headwind.
NIFTY FMCG — Witnesses Profit Booking
Weekly Performance: -2.3%
The NIFTY FMCG index faced selling pressure and corrected by 2.3% for the week. Profit booking was seen across the board, with all 15 index stocks declining. Nestle, Britannia Industries, Hindustan Unilever, and Godrej Consumer Products were the top contributors to the fall, collectively contributing nearly 50% of the total decline. Britannia corrected after its 1QFY26 earnings, which disappointed analysts due to lower EBITDA margins. The NIFTY FMCG index has lost in 2 of the past 5 weeks and is likely witnessing profit booking after being one of the better-performing indices in recent times.
NIFTY AUTO — 2 Wheelers Lead the Index to a Weekly Gain
Weekly Performance: 0.3%
The NIFTY AUTO index managed to post a slight gain of 0.3% for the week, driven by the performance of 2-wheeler manufacturers. Despite the overall market weakness, the Auto sector saw some positive momentum, particularly from companies like Hero Motocorp and Bajaj Auto. This slight gain stands out in a week where most other sectors experienced declines.
Frequently Asked Questions
What factors are contributing to the persistent selling pressure in the Indian equity markets?
The persistent selling pressure in the Indian equity markets is primarily driven by tariff uncertainty, lackluster results from large-cap companies, and significant foreign institutional investor (FII) outflows.
Which sectors were the key drags on the NIFTY 50 index for the week?
The key drags on the NIFTY 50 index for the week were the IT and Financials sectors.
How did the NIFTY MIDCAP SELECT index perform this week?
The NIFTY MIDCAP SELECT index ended the week 1.28% lower, marking its third consecutive weekly loss. The market breadth was very weak, with 19 declines and only 6 advances.
What were the top performers in the NIFTY IT index this week?
The top performers in the NIFTY IT index this week were Tech Mahindra, Tata Consultancy Services, and HCL Technologies, which saw gains of 2.89%, 1.11%, and 1.63%, respectively.
Why did the NIFTY FMCG index decline by 2.3% this week?
The NIFTY FMCG index declined by 2.3% this week due to profit booking across the board. Nestle, Britannia Industries, Hindustan Unilever, and Godrej Consumer Products were the top contributors to the fall, collectively contributing nearly 50% of the total decline.
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