After opening the day lower, the benchmark indices continued their downward momentum, ended the session in the red.

Indian equity markets indices Sensex and Nifty settled sharply lower on Friday, dragged by declines in Axis Bank, Kotak Bank, and Bharti Airtel. FII selling, global uncertainties around US Fed policy, and rising oil prices further contributed to the muted investor sentiment.

At the closing bell, the BSE Sensex  closed lower by 501 points (down 0.6%)

Meanwhile, the NSE Nifty closed 143 points lower (down 0.5%)

Bajaj Finance, Tata Steel, and ICICI Bank are among the top gainers today

Axis Bank, Kotak Mahindra, and Bharati Airtel, on the other hand, were among the top losers today.

The GIFT Nifty was trading at  25,033, lower by 115 points at the time of writing.

The BSE MidCap index ended 0.6% lower, and the BSE SmallCap index ended 0.6% lower.

Sectoral indices are trading mixed today, with stocks in the metal sector and the services sector witnessing buying. Meanwhile, the stocks in the banking sector and the power sector are witnessing selling pressure.

The rupee is trading at Rs 86.0 against the US$.

Gold prices for the latest contract on MCX are trading 0.4% higher at Rs 97,952 per 10 grams.

Meanwhile, silver prices were trading 0.8% higher at Rs 1,13,274 per 1 kg.

Here are four reasons why Indian share markets are falling:

#1 Weak Q1 earnings

Q1 earnings results have been disappointing, dashing hopes of a strong revival. Despite expectations of growth, results have been unimpressive, with cautious management commentary due to global uncertainty, which is negatively impacting market sentiment.

#2 Elusive India-US trade deal

Despite reports of an imminent US-India trade deal, the wait continues. Ahead of the August 1 deadline, India is aiming for lower tariff rates than Vietnam and Indonesia. Investors are being cautious due to tariff uncertainty, and a favourable resolution could increase investor confidence.

#3 Stretched valuation

Investors are cautious due to the market's high valuation, as the Nifty's PE of 22.6 is higher than its two-year average. Market sentiment is being affected by stretched valuations due to the delayed earnings revival.

#4 Foreign capital outflow

Indian stocks are being heavily sold by foreign portfolio investors (FPIs), which is limiting market gains. FPIs sold Indian stocks for Rs 173.3 billion (bn) in July. One of the main causes of the market's decline is this selling trend.
 

Polycab Shares Surges on Strong Q1 Earnings

In the new from cables sector, shares of Polycab rises 3% after strong Q1 earnings.

Polycab India reported a 49% increase in net profit to Rs 5.9 bn in Q1 FY26 compared to Rs 3.9 bn in the same period last year.

According to the company, the wires and cables (W&C) division's strong performance and the FMEG division's healthy growth momentum were the main drivers of the strong growth.

Compared to the same period last year, its operating revenue increased by 26% to Rs 59.8 bn from Rs 47.5 bn.

With its operating profit increasing 46% annually to Rs 9.4 bn and its EBITDA margin improving by 220 basis points to 15.66% from 13.49%, Polycab reported strong operational performance.

Polycab's wires and cables segment grew 31% due to higher government spending, improved project execution, and rising commodity prices. With cables outperforming wires, domestic business increased by 32%. Institutional and channel sales both grew significantly.

Polycab's FMEG business grew 18% YoY growth due to strong sales of lights, switchgear, and other products. However, because the summer season was shorter, the fan segment did not do well. Demand for real estate fuelled expansion in other areas.
 

Tata Communications Q1 Profit Drops 43%

Moving on to the news from telecom sector, Tata Telecommunication posted its Q1 FY26 results.

Tata Communications' consolidated net profit fell 42.95% YoY to Rs 1.9 bn in Q1 FY26, down from Rs 3.3 bn in the same period last year.

The company's operating income for the quarter under review was Rs 59.6 bn, up 6.57% year over year from Rs 55.9 bn in the first quarter of FY25.

Mixed results were seen in Tata Communications' Q1 FY26 revenue with Data Services increased 9.53% to Rs 51.5 bn, while Voice Solutions fell 6.7% to Rs 39.4 bn. Revenue from transformation services dropped 27.34% to Rs 2.2 bn, while revenue from real estate fell 12.71% to Rs 0.5 bn. Revenue from the Campaign Registry, however, increased 30.21% to Rs 1.8 bn.

Its EBITDA remained steady at Rs 11.3 bn, but its EBITDA margin declined to 19.1% from 20.3% YoY, a drop of 1.2%.

Supported by robust, double-digit YoY growth in its digital fabric, the company's data revenue increased 9.4% YoY to Rs 51.3 bn in the quarter. Revenue from its digital portfolio increased by 17.4%.

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