Stock market news: The equity benchmark indices, Sensex and Nifty 50, fell for a third consecutive session on Friday, decreasing by nearly 1% due to substantial selling in IT, auto, and energy sectors amid a lackluster start to the earnings season.
Uncertainties related to tariffs and mixed trends in global markets further contributed to the downturn, analysts noted.
The Sensex dropped by 689.81 points or 0.83% to close at 82,500.47. Throughout the day, it experienced a decline of 748.03 points or 0.89%, reaching 82,442.25.
Likewise, the Nifty 50 fell by 205.40 points or 0.81% to 25,149.85. Over the week, the BSE benchmark decreased by 932.42 points or 1.11%, while the Nifty 50 fell by 311.15 points or 1.22%.
Dharmesh Shah of ICICI Securities expects Nifty 50 to gradually resolve higher and head towards 25,800 in coming month. Shah has recommended one stock to buy for short-term. Investors should consult experts before making decisions. Here’s what he expects from Indian stock market next week, along with his stock recommendation.
Market Outlook by Dharmesh Shah, Vice President, ICICI Securities
Equity benchmarks extended breather over second consecutive week amid lack of clarity on India – US bilateral trade deal. Consequently, Nifty 50 settled the week at 25,150, down 1.2% for the week wherein broader market relatively underperformed by losing >1.5%, each. Sectorally, IT, Defence extended losses while FMCG and MNC stocks relatively outperformed. The weekly price action formed a bear candle carrying lower high-low, indicating extended breather.
We expect volatility to remain elevated amid progression of earning season coupled with Tariff related development wherein strong support is placed at 24,800 levels. Currently, index is undergoing healthy consolidation wherein over past 10 sessions Nifty 50 has merely retraced 50% of preceding 10 sessions up move. Slower pace of retracement while trading in the vicinity of 20 days EMA, highlights robust price structure. Hence, any dip from hereon should be capitalised to accumulate quality stocks with strong earnings as we expect Nifty 50 to gradually resolve higher and head towards 25,800 in coming month.
Key Monitorable which will dictate the further course of action
a. All eyes will be on outcome of US-India bilateral trade deal coupled with progression of Q1FY26 earning season which will dictate the further course of action.
b. Falling US Dollar index would act as boon for equities that would eventually result into FII’s inflow.
c. India VIX has extended losses and likely to close at one year low of 12, indicating participants anxiety at lowest level.
Structurally, the formation of higher peak and trough while absorbing host of negative news around geo-political uncertainties coupled with clarity of trade tariff. Further, strong market breadth depict strength as currently 60% stocks of Nifty 500 universe are trading above 200 days SMA compared to last month’s reading of 52% that bodes well for durability of ongoing structural up move.
Stocks To Buy This Week – Dharmesh Shah
Dharmesh Shah of ICICI Securities recommends buying Power Finance Corporation Ltd (PFC) shares this week.
Buy PFC shares in the range of ₹415-430. He has PFC share price target of ₹478 with a stop loss of ₹388.
Disclaimer: The Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 11/07/2025 or have no other financial interest and do not have any material conflict of interest.
The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
