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, closed lower, amid stock-specific action as investors reacted to June quarter results and weakness in Bajaj twins: Bajaj Finance and Bajaj Finserv, and other heavyweight stocks.

At the closing bell, the BSE Sensex closed lower by 721 points (down 0.8%).

Meanwhile, the NSE Nifty closed 225 points lower (down 0.9%)

Sun Pharm is among the top gainers today

Bajaj Finance, Power Grid Corp, and Tech Mahindra, on the other hand, were among the top losers today.

The GIFT Nifty was trading at  24,842, lower by 245 points at the time of writing.

The BSE MidCap index ended 1.4% lower, and the BSE SmallCap index ended 1.8% lower.

Barring the health care sector, all other sectoral indices are trading negatively today, with stocks in the oil & gas sector and the power sector witnessing selling pressure.

The rupee is trading at Rs 86.3 against the US$.

Gold prices for the latest contract on MCX are trading 0.5% lower at Rs 98,226 per 10 grams.

Meanwhile, silver prices were trading 0.3% lower at Rs 1,14,827 per 1 kg.

Here are four reasons why Indian share markets are falling:

#1 Delayed India-US trade deal

India and the US are negotiating a trade deal, with both sides making progress. India is concerned about the US's desire for increased access to its market for agricultural and genetically modified products. India's Commerce Minister is hopeful about a possible agreement despite this.

#2 Foreign capital outflow

Foreign portfolio investors have sold Rs 285.3 billion (bn) worth of Indian stocks in July, with Rs 115.7 bn sold in just the last four days. They are uncomfortable with Indian market valuations despite improving economic indicators.

#3 Weak Q1 Performance

India's companies' weak Q1 results haven't boosted the market. Many sectors, like IT and finance, saw more disappointments than successes. Uncertainty around the US-India trade deal is adding to the cautious sentiment.

#4 Concerns Over Stretched Valuations

India's market valuation is too high and unsustainable due to weak earnings. While the Nifty is okay, smaller stocks seem overvalued. The broader market, especially small caps, may continue to weaken due to excessive valuations.
 

Trident Shares Surge on Q1 Profit

In the news from consumer discretionary sector, Trident Ltd, a textiles and paper products company, saw its shares rise 5% on Friday after reporting its quarterly results.

EBITDA increased 29.3% to Rs 2,9 billion (bn), while revenue from operations decreased 2.1% year over year to Rs 17.1 bn.

Despite weaker revenue growth, Trident, which supplies home textiles to major international retailers such as Walmart and Target, was overshadowed by a 7% decrease in total expenses. This helped the company deliver a sharp rebound in profitability and improve margins.

Compared to the same quarter last year, when the EBITDA margin was 12.9%, it increased to 17%.

For the first quarter that ended on June 30, the company's quarterly profit increased by 89.7% to Rs 1.4 bn from Rs 0.7 bn in the same period last year.

Trident, a home textiles and paper products company, has benefited from lower cotton prices. Cotton prices surged 18% last year, hurting profits, but now they have dropped, helping Trident.
 

SBI Life's Q1 Profit Surges 14%

Moving on to the news from financial services sector, shares of SBI Life gained 3% after the company reported its Q1FY26 results.

Net premium income dropped by 28% from Rs 238.6 bn during the FY25 January-March quarter.

The company's net premium revenue increased by 14% to ?17,178 crore from ?15,105 crore during the same quarter of the previous fiscal year.

The renewal premium was Rs 105.5 bn in Q1FY26, indicating a notable 28% sequential decline but a 23% year-over-year increase.

The first-year premium was roughly Rs 353.9 bn, up from Rs 314.6 bn the previous year but down from Rs 485.9 bn in Q4.

For the quarter, the renewal premium totalled about Rs 1,050 bn. In the next quarters, the company expects renewals to remain a major driver of growth.

SBI Life Insurance Company reported a 14% increase in net profit for Q1FY26 over the same quarter the previous year. Profits increased to Rs 5.9 bn crore from Rs 5.2 bn.

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