Share Market News: 5 enemies of the stock market spoiled the mood, investors lost 13 lakh crores

Share Market News: On Tuesday, July 29, 2025, the stock market witnessed a decline for the fourth consecutive day. Both the Sensex and Nifty indices witnessed heavy volatility. As soon as the market opened, the Sensex fell by about 300 points to a low of 80,575.45, while the Nifty fell 0.30% to 24,598.60. In the last four trading sessions, the Sensex has fallen by 2,100 points (about 3%) and the Nifty by 2.5%. This decline has caused a loss of more than Rs 13 lakh crore to investors' wealth. Let us understand in detail the key reasons for this decline and the prospects of a boom in the market.

Market condition in four days

Sensex: On Tuesday, the Sensex fell 300 points (0.40%) from its previous close of 80,891.02 to 80,575.45. A total decline of 2,100 points in four sessions.

Nifty: Nifty fell 0.30% to a low of 24,598.60. A decline of 2.5% in four sessions.

Investors' loss: The market cap of BSE-listed companies fell from Rs 460.35 lakh crore on July 23 to Rs 447 lakh crore on July 29, causing a loss of Rs 13 lakh crore to investors.

5 major reasons for the decline in the stock market

1. Delay in trade deal with America

Despite the August 1 deadline set by US President Donald Trump, there is no progress in the trade deal between India and the US. The deal is stuck especially due to lack of consensus in the agriculture sector. This has weakened investor sentiments and increased the fear of geopolitical tensions and economic uncertainties.

2. Heavy selling by foreign investors

Foreign portfolio investors (FPIs) withdrew Rs 7,923 crore from the Indian stock market in July. On Monday itself, there was a sell-off of Rs 6,081 crore ($700.92 million), which was the largest single-day sell-off since May 30. This withdrawal remains a major reason for volatility in the market.

3. Rupee decline

The rupee fell 1.50% against the dollar. On Tuesday, the rupee fell 18 paise to 86.88. This decline is being seen due to increased demand for the dollar and pressure in the foreign exchange market, which is putting additional pressure on the stock market.

4. Weak corporate earnings

Corporate results for the first quarter have been weaker than expectations. For example, Kotak Bank reported a 47% profit decline in the first quarter. The results of IT companies were also disappointing, which has increased the pressure in the market.

5. Other external factors

• IT policy in the US: Trump instructed US IT companies not to hire Indian professionals, which put pressure on Indian IT stocks.
• Tariff on pharma sector: The 50% tariff on the Indian pharma sector by the US affected the stocks of this sector.
• Geopolitical tension: Trump's ultimatum to Russia to end the war in 12 days is also putting pressure on the market.

Chances of a boom in the market

According to Anuj Gupta, director of Ya Wealth Global Research, the delay in the trade deal is the main reason for the decline in the stock market. The US has completed trade deals with Europe, Japan and South Korea and is now negotiating with China. The market may remain volatile due to the delay in the deal with India. Experts believe that until the India-US trade deal is finalized, there is little hope of stability in the market.

However, there are some positive signs as well:

• Possible improvement: If there is progress in the trade deal, investors' confidence may return.
• Monetary policy relief: Interest rate cuts or other stimulus measures by the Reserve Bank of India may support the market.
• Global cues: Stability in global markets and improvement in the rupee may also support the market.