Sensex, Nifty Fall in Morning; IT, Midcap, Bank Stocks Decline | Aug 5, 2025

Sensex, Nifty drop in morning on August 5, 2025 led by IT, midcap, and bank stocks. Smallcaps outperform. Get trends, predictions, and market alerts.

Sensex, Nifty Fall in Morning; IT, Midcap, Bank Stocks Lead Decline | August 5, 2025, 11:45 AM IST

Indian equities reversed course and traded sharply lower through Tuesday morning, August 5, 2025. Weak sentiment across sectors sent benchmarks down, while smallcaps held up relatively better.

Market Snapshot – 11:42 AM IST

IndexLTPChange% Chg
SENSEX80,693.58-325.14-0.40%
NIFTY 5024,632.25-90.50-0.37%
NIFTY BANK55,459.20-160.15-0.29%
NIFTY IT34,892.95-310.40-0.88%
India VIX11.93-0.04-0.33%
NIFTY Midcap 10057,222.35-210.00-0.37%
NIFTY Smallcap 10017,874.20-19.20-0.11%
  • IT stocks tumble: Nifty IT dropped 0.88% amid global tech weakness and broad profit-taking in largecap and mid-tier tech names.
  • Banks and midcaps weak: Both sectors mirrored the general market pullback as cautious sentiment prevailed before major earnings announcements.
  • Smallcaps outperform: While still down, smallcap stocks outperformed the rest of the market, signaling selective risk-taking and value buying among retail and domestic institutions.
  • Volatility normalizes: India VIX edged lower, indicating lack of panic despite the selloff, though choppiness may persist in the near term.
  • Macro triggers: Traders remain alert for global cues and fresh domestic earnings; further declines could be triggered by risk-off flows or disappointment on results.

Market Prediction & What to Watch

  • Downside test: Nifty’s next support is at 24,600; sustained action below this could send indices towards recent lows.
  • IT & financials pressure: Continued caution in banks and IT stocks could inhibit any immediate bounce, but smallcap momentum warrants monitoring for reversal opportunities.
  • Sector rotation: Defensive positioning in FMCG and select pharma may increase if broader risk aversion deepens through the session.
  • Strategy: Prefer nimble trading, focus on quality names, and avoid aggressive bottom-fishing until trends stabilize.

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