Weekly Market Wrap – Selling Pressure Persists

11 Aug 2025 , 12:56 PM

Weekly Market Wrap – Selling Pressure Persists

Tariff uncertainty, lacklustre results and FII outflows continue to impact Indian equity markets. In its sixth weekly loss, NIFTY 50 fell another 0.8%. Nearly all the sectoral indices (barring Auto) witnessed a fall. Financials and IT continued to be key drags on the index. Even FMCG, which likely benefited from sector rotation in July witnessed profit booking. Pharma and Real Estate indices were once again amongst the worst performing weekly indices.

NIFTY 50 — Another week of losses

Weekly Performance: -0.8%

date	open	high	low	close
2025-08-08	24544.2	24585.5	24337.5	24363.3
2025-08-07	24464.2	24634.2	24344.2	24596.2
2025-08-06	24641.3	24671.4	24539.2	24574.2
2025-08-05	24720.2	24733.1	24590.3	24649.6
2025-08-04	24596.1	24736.2	24554.0	24722.8
2025-08-01	24734.9	24784.2	24535.1	24565.3

Source: NSE

Figure: Recent performance

Source: NSE

Nifty 50 index reported its sixth successive week of losses as it lost 0.82% during the week. IT and Financials continued to be key drags on the index. Adani Enterprises, Nestle and Apollo Hospitals were among the top losers. On the other hand, Hero Motocorp, Titan and Tata Steel witnessed healthy rallies and were up 3% to 7% each. Market breadth in the index was marginally weak as 23 stocks advanced and 27 declined.

FII outflows, tariff uncertainty and lackluster results from select large-caps are among the key reasons for the continued weakness in NIFTY.

 

NIFTY MIDCAP SELECT – Selling Pressure persists

Weekly Performance: -1.3%

date	open	high	low	close
2025-08-08	12762.4	12762.4	12493.3	12506.3
2025-08-07	12559.9	12750.8	12504.0	12724.7
2025-08-06	12799.0	12799.0	12575.5	12636.4
2025-08-05	12865.0	12871.8	12716.8	12761.0
2025-08-04	12684.7	12870.0	12614.0	12861.1
2025-08-01	12865.5	12871.8	12645.0	12668.2

Source: NSE

Figure: Recent performance

Source: NSE

The NIFTY MIDCAP SELECT index ended the week lower by 1.28%, registering its third straight weekly loss. Bottom performers were CoForge, Dixon, Ashok Leyland and SRF that were down 4% to 6%. On the other hand, top contributors included the likes of Cummins India (up 6.67%) and  Lupin (up 2.7%). The overall market breadth was very weak with 19 declines and only 6 advances. The NIFTY mid-cap index declined in 4 of the past 5 weeks and has underperformed the large cap NIFTY materially.

NIFTY IT – Sixth consecutive weekly loss

Weekly Performance: -0.7%

date	open	high	low	close
2025-08-08	34603.0	34643.8	34350.9	34398.5
2025-08-07	34284.9	34808.1	34224.6	34726.8
2025-08-06	34957.9	34990.4	34347.4	34426.2
2025-08-05	35196.8	35196.8	34854.3	35034.5
2025-08-04	34558.7	35219.9	34324.9	35203.4
2025-08-01	35118.6	35166.4	34586.9	34649.6

Source: NSE

Figure: Recent performance

Source: NSE

NIFTY IT ended the week with another loss and closed -0.72%. This was the fifth consecutive weekly loss for the index. On the positive, market breadth improved (vs last week) as 5 of the index stocks closed in the green. Among the prominent gainers on the index were Tech Mahindra, Tata Consultancy Services and HCL Technologies, which were up by 2.89%, 1.11% and 1.63%, respectively. On the other hand, Infosys, Coforge and Wipro were among the worst performers with declines of 3.16%, 5.83% and 1.52% respectively.

Lackluster earnings from some of the IT majors, continued FII selling and uncertainty over whether AI would reduce the demand for software programmers were among the issues behind the caution.

NIFTY BANK – Weakness Persists

Weekly Performance: -1.1%

date	open	high	low	close
2025-08-08	55609.4	55652.6	54905.6	55004.9
2025-08-07	55215.6	55614.8	54973.6	55521.1
2025-08-06	55329.8	55559.4	55227.7	55411.1
2025-08-05	55545.1	55648.1	55202.9	55360.2
2025-08-04	55557.5	55752.4	55437.3	55619.4
2025-08-01	55897.1	56097.6	55562.1	55617.6

Source: NSE

Figure: Recent performance

Source: NSE

NIFTY BANK index ended the week with loss of 1.10%. While the market breadth wasn’t bad (6 advances vs 6 declines), losses at heavyweight private sector banks led to the weak performance of the index. Among the worst performers were ICICI Bank, HDFC Bank, Kotak Mahindra Bank and Axis Bank. On the other hand, PSU banks fared well. State Bank of India (SBI), Bank of Baroda, Canara Bank and Punjab National Bank gained between 0.75% to 2% each and were among the top contributors.

NIFTY BANK has been among the best performing indices YTD. However, persistent FII outflows have likely impacted its performance in the recent past. It witnessed losses in 4 of the past 5 weeks.

 

NIFTY ENERGY – Weak market breadth pulls the index down

Weekly Performance: -1.4%

date	open	high	low	close
2025-08-08	34635.6	34714.9	34340.1	34391.9
2025-08-07	34504.5	34660.6	34114.4	34613.8
2025-08-06	34932.9	34947.2	34617.7	34683.4
2025-08-05	34957.3	35062.3	34739.8	34914.4
2025-08-04	34932.3	35025.6	34685.0	34923.4
2025-08-01	35183.3	35283.2	34826.3	34889.0

Source: NSE

Figure: Recent performance

Source: NSE

NIFTY ENERGY ended the week with a loss of 1.4% and recorded its third consecutive weekly loss. The index was held back by a weak advance decline ratio, as 26 stocks declined compared with just 12 that advanced. Torrent Power, CG Power and Coal India were notable exceptions and witnessed gains ranging from 1.9% to 3.7%. Among the top losers were Thermax and wind turbine makers – Inoxwind, Triveni Turbine. Each of them fell 8% to 13.4%.

NIFTY Energy index has witnessed a decline in 4 of the past 5 weeks. Uncertainty related to steep tariffs from the US over Russia linked oil has been among the key headwinds in the recent past.

 

NIFTY FMCG – Witnesses profit booking

Weekly Performance: -2.3%

date	open	high	low	close
2025-08-08	55343.9	55517.9	54844.6	54900.9
2025-08-07	55156.4	55430.2	54950.9	55298.5
2025-08-06	55728.6	55778.6	55097.4	55230.8
2025-08-05	56202.4	56231.4	55584.9	55733.7
2025-08-04	56336.6	56431.3	55979.1	56139.6
2025-08-01	55982.0	57032.9	55974.8	56197.1

Source: NSE

Figure: Recent performance

Source: NSE

NIFTY FMCG witnessed selling pressure and corrected 2.3% for the week. Profit booking was seen across the board with all the 15 index stocks falling for the week. Nestle, Britannia Industries, Hindustan Unilever and Godrej Consumer Products were the top contributors to the fall in the index as they collectively contributed nearly 50% of total fall. Britannia corrected after its 1QFY26 earnings due to disappointing EBITDA margins (vs analyst estimates).

The NIFTY FMCG index lost in 2 of the past 5 weeks. Being among the better performing indices in recent past, the index is likely witnessing profit booking now.

NIFTY AUTO – 2 Wheelers lead the index to a weekly gain

Weekly Performance: 0.3%

date	open	high	low	close
2025-08-08	23810.3	23890.8	23439.1	23474.7
2025-08-07	23620.0	23839.6	23453.6	23808.1
2025-08-06	23902.4	23927.8	23662.5	23748.8
2025-08-05	23806.3	23903.9	23669.7	23876.3
2025-08-04	23457.2	23800.2	23416.1	23787.5
2025-08-01	23684.8	23737.2	23378.9	23410.9

Source: NSE

Figure: Recent performance

Source: NSE

The NIFTY AUTO index was among the best performing indices during the week. It witnessed a gain of 0.27%. 2 wheeler stocks – Hero MotoCorp and TVS were the top performers and gained by 6.68% and 3.87% respectively. Strong 1QFY26 results were among the key reasons for Hero MotoCorp’s performance. On the other hand, exporters fared the worst. Motherson, Balkrishna and Tata Motors were 3 of the bottom 5 performers.

The performance of NIFTY AUTO Index has been mixed over the past five weeks. While it witnessed gains in 2 of them, it witnessed declines in 3.

 

NIFTY PHARMA – Another sharp weekly fall

Weekly Performance: -2.8%

date	open	high	low	close
2025-08-08	21633.1	21676.2	21375.9	21402.2
2025-08-07	21380.9	21712.3	21325.2	21684.8
2025-08-06	21966.5	21966.6	21487.3	21523.8
2025-08-05	22142.7	22237.6	21879.7	21970.2
2025-08-04	22038.5	22206.8	21890.6	22153.8
2025-08-01	22696.2	22705.9	21972.7	22011.7

Source: NSE

Figure: Recent performance

Source: NSE

A second straight weekly fall resulted in the NIFTY PHARMA index closing the week lower by 2.77%. Most of the major constituents were down with a decline led by Biocon, Divi’s Laboratories and Ipca Laboratories. Biocon fell 10.4% while Divi’s and Ipca fell 4% to 7% each. On the other hand, Lupin emerged as the only gainer (+2.7% for the week).

The market breadth was extremely weak as only 1 of the 20 constituents ended in the green. The index has witnessed selling pressure in the recent past due to tariff related uncertainty and lacklustre earnings. In two weeks, it has lost more than 5%.

 

NIFTY REALTY – Selling pressure persists

Weekly Performance: -2.5%

date	open	high	low	close
2025-08-08	892.2	896.6	871.4	874.2
2025-08-07	887.0	896.5	879.2	893.0
2025-08-06	908.8	909.8	883.8	894.2
2025-08-05	913.8	915.8	898.3	907.8
2025-08-04	897.4	914.5	893.6	912.0
2025-08-01	912.2	918.0	893.5	896.2

Source: NSE

Figure: Recent performance

Source: NSE

For the week, the NIFTY REALTY index ended down by 2.45%. Barring Prestige, rest of the stocks witnessed declines. Raymond and Anantraj were the bottom performers and were down more than 5%. Real estate stocks have been under pressure in recent weeks. Despite RBI’s rate cut in June, concerns over luxury housing supply and layoffs in the IT sector have likely impacted the appetite. Over the past three weeks, the index has lost more than 10%.