Sensex Tumbles 721 Points as Bajaj Twins' Results Rattle Dalal Street

A sharp reality check hit Dalal Street on Friday, as disappointing quarterly results from financial giant Bajaj Finance triggered a broad-based sell-off, snapping the market’s winning streak.

The benchmark indices tumbled on Friday, July 25, 2025. The BSE Sensex closed at 81,463.09, shedding 721 points (0.88%), while the NSE Nifty50 fell 225 points (0.90%) to settle at 24,837.

The sell-off was intense, wiping out over ₹4.75 lakh crore in market capitalisation from BSE-listed companies in a single session. The pain extended beyond the blue-chips, with the broader market also taking a hit. The Nifty MidCap 100 index plunged 1.61%, and the Nifty SmallCap 100 index tumbled 2.1%, signalling widespread selling pressure.

The Bajaj Twins’ Jolt: What Spooked the Market?

The primary catalyst for the downturn was the Q1 FY26 earnings report from financial heavyweight Bajaj Finance and its holding company, Bajaj Finserv. While Bajaj Finance posted a healthy 22% year-on-year rise in consolidated net profit, the fine print raised red flags.

Investors grew concerned about the company’s asset quality, especially in its loan portfolio for Micro, Small, and Medium Enterprises (MSME). These worries, amplified by downgrades from several global brokerages, triggered a massive sell-off in the “Bajaj Twins.”

• Bajaj Finance was the top Nifty laggard, its stock plummeting by nearly 5%.
• Bajaj Finserv also faced intense selling pressure, closing down over 4.5%.

The poor showing from these two financial heavyweights created a ripple effect, dragging down the entire Nifty Financial Services index by over 1%.

A Sea of Red: Sector-Wide Domino Effect

The negative sentiment quickly spilled over from the financial space, leading to a broad-based decline.

• Widespread Selling: With one exception, all sectoral indices on the NSE closed in the red.
• Top Laggards: The Nifty Media index was the hardest hit, falling 2.6%. It was followed by sharp cuts in Nifty Metal (1.64%), Nifty IT (1.42%), and Nifty Auto (1.27%).
• The Lone Survivor: The Nifty Pharma index was the sole gainer, closing up 0.54% as investors likely shifted to the defensive healthcare sector.

This widespread sell-off indicates a ‘risk-off’ sentiment took hold, prompting traders to book profits. Underscoring the rising anxiety, the India VIX—a key measure of market volatility—shot up by over 5%.

Key Takeaways for Indian Investors

Friday’s session is a classic example of how heavyweight stocks can sway the entire market. Bajaj Finance and Bajaj Finserv hold significant weight in the Nifty50 index, meaning their sharp fall dragged the whole index down.

For retail investors, this is a crucial reminder of two core principles:

1. Avoid Panic Selling: Sharp, single-day falls are a normal part of the market cycle. Resist the urge to make hasty decisions based on one day’s news.
2. Embrace Diversification: A well-diversified portfolio across various sectors and market caps can cushion the impact when one stock or sector underperforms. The resilience of the pharma sector today is a perfect illustration of this principle.

What to Watch in the Coming Week

As we head into a new week, here are a few factors to keep an eye on:

• Key Technical Levels: For the Nifty50, 24,900 now acts as a crucial resistance level. The index has slipped below its 50-day moving average, a short-term bearish signal. Immediate support is at 24,700; a break below this could trigger a further correction towards 24,500.
• Earnings Season: The earnings season continues. The results of other major companies, particularly Kotak Mahindra Bank (expected on July 26), will be closely watched and could set the market’s tone.
• Global Cues & FII Flow: Monitor global market trends and the investment activity of Foreign Institutional Investors (FIIs), as their capital flows are a key driver for Indian markets.

Disclaimer: This article is for informational purposes only and should not be considered investment advice. Please conduct your own research before making any investment decisions.