Sensex, Nifty drop in early trade dragged by IT stocks, foreign fund outflows

By | July 14, 2025
Sensex Nifty Drop 14 July 2025 – IT Stocks and FII outflows impact market

Indian stock markets opened on a weak note on Monday, July 14, 2025. Both the Sensex and Nifty fell during early trade. The drop was mainly due to heavy selling in IT stocks and continued foreign institutional investor (FII) outflows.

Market Snapshot

The BSE Sensex fell by over 230 points, trading near 82,267. The NSE Nifty dropped by around 70 points to about 25,078. Overall market sentiment was negative, with more stocks declining than rising.

Major IT companies like Infosys, Tech Mahindra, HCL Technologies, and TCS led the decline. Their underperformance dragged the broader indices lower.

IT Sector Faces Headwinds

The IT sector has been under pressure in recent months. Global demand is slowing, especially in the U.S. and Europe. Many clients are cutting back on tech spending. Rising costs and salary hikes have also reduced profit margins.

On Monday, Infosys and Tech Mahindra each fell by more than 1.5%. Investors are concerned about growth in the sector. Analysts say the outlook remains uncertain.

“With shrinking IT budgets and slower new deals, companies are struggling to maintain momentum,” said Rajeev Mehta, a Mumbai-based equity analyst.

FII Outflows Add to Pressure

Foreign investors sold heavily last week. On Friday, FIIs pulled out ₹5,100 crore from Indian equities. This selling trend has continued into the new week.

Many global investors are moving funds to safer assets like U.S. treasury bonds. Rising interest rates in developed markets are also attracting capital away from emerging economies like India.

“Domestic investors are still buying, but FII selling is weighing on the indices,” said Kavita Lamba, a market strategist in Delhi.

Global Market Sentiment Mixed

Overseas cues added to the cautious mood. Asian markets showed small gains, but U.S. indices closed lower on Friday. Traders booked profits, worried about inflation and interest rates.

Oil prices remain volatile, adding uncertainty. The Indian Rupee stayed flat around ₹83.35 to the dollar. That gave no edge to export-heavy sectors like IT.

Sector and Stock Moves

Beyond IT, sectors like real estate, banking, and auto showed strength. Some midcap and smallcap stocks saw limited gains.

  • HDFC Bank and ICICI Bank remained stable.
  • Maruti Suzuki and Tata Motors inched up on hopes of strong July sales.
  • Wipro and LTIMindtree dropped over 2%, continuing the IT sector slump.

What to Watch Ahead

Several factors will shape market moves in the coming days:

  1. Quarterly earnings: Reports from top banks, automakers, and FMCG firms may affect sentiment.
  2. FII flows: Any slowdown in foreign selling could boost markets.
  3. Global news: A U.S.-India trade agreement could lift investor mood.
  4. RBI signals: Clues about future rate policy are expected next month.

Expert Views

Analysts advise patience. “Markets are cooling after a strong rally,” said Anshul Mehra, a Mumbai-based portfolio manager. “Investors should focus on quality stocks and not react to daily fluctuations.”

Technical analysts see support for Nifty near 24,950. Resistance is expected around 25,350. A drop below support could trigger more selling, especially if FIIs continue to exit.

Conclusion

Monday’s drop highlights investor caution. IT sector struggles and foreign fund outflows are hurting sentiment. But many experts see this as a short-term correction, not a long-term trend. Investors should watch earnings and global cues for the next move.