Title: Kotak Bank Drops 6%, Nifty Wobbles as India Lags on US Deal
Indian markets opened weak on July 28, with the Nifty hovering below 24,800 amid growing concerns over India’s prospects of securing a trade deal with the United States. The benchmark index, Nifty, opened 0.3% lower at 24,761, while the Sensex slipped 0.4% to 83,131. The weakness in the markets was largely driven by a disappointing Q1 earnings report from Kotak Bank, which sent shockwaves through the private banking sector.
Kotak Bank’s shares plummeted 6% in early trade, dragged down by a significant miss on quarterly earnings. The bank’s net profit came in at ₹1,344 crore, significantly lower than the ₹1,625 crore expected by analysts. The disappointing earnings report led to a broader sell-off in the banking space, with private lenders such as HDFC Bank and ICICI Bank also trading lower.
The weakness in the banking sector weighed heavily on the overall market, with the Nifty50 index falling 0.5% to 24,764. The Sensex also followed suit, dropping 0.6% to 83,107. The market’s weakness was further exacerbated by a lack of positive news on the trade front, with India’s chances of securing a trade deal with the United States appearing increasingly slim.
Analysts have flagged 25,020 as a key resistance level for the Nifty, advising caution for investors. “The market is likely to remain volatile in the near term, with the Nifty facing resistance around 25,020,” said Vinod Nair, head of research at Geojit Financial Services. “Investors should exercise caution and wait for a clear break above this level before taking long positions.”
Despite the weakness in the broader market, there were some pockets of buying interest in certain sectors. Realty and tech stocks, in particular, saw some buying interest, with stocks such as DLF and Bharti Airtel trading higher. Pharam and FMCG stocks also saw some buying, with stocks such as Sun Pharma and Hindustan Unilever trading higher.
However, the overall sentiment remained bearish, with retail investors remaining cautious. “The market is likely to remain volatile, and investors should be prepared for a bumpy ride,” said Raghavendra Choubey, a retail investor. “I’m taking a wait-and-see approach, and will only take long positions if the market breaks above 25,020.”
The weakness in the market was also driven by growing concerns over the global economy. The International Monetary Fund (IMF) has cut its growth forecast for the global economy, citing rising trade tensions and other factors. The IMF has also warned that the global economy is facing a heightened risk of recession, which has weighed on investor sentiment.
In conclusion, the Indian markets opened weak on July 28, with the Nifty hovering below 24,800 amid growing concerns over India’s prospects of securing a trade deal with the United States. Kotak Bank’s disappointing Q1 earnings report sent shockwaves through the private banking sector, while the broader market remained cautious due to growing concerns over the global economy. Analysts have flagged 25,020 as a key resistance level for the Nifty, advising caution for investors.
