July 26, 2025

THE CLIFF NEWS

National Daily Bilingual Newspaper

Category: Stock Market

Indian Stock Markets Tumble as Sensex Drops 700 Points: 5 Key Reasons Behind the Decline

After posting gains earlier in the week, Indian equity markets reversed course on Thursday, July 24, with benchmark indices Sensex and Nifty 50 witnessing sharp losses during intraday trade. The Sensex plunged nearly 700 points, touching a low of 82,047, while the Nifty 50 declined by 0.80% to an intraday low of 25,018.70. By 12:35 PM, the Sensex had trimmed some losses but was still down by 502 points (0.61%) at 82,225, and the Nifty was 136 points (0.54%) lower at 25,084. Broader markets mirrored the weakness, with both the BSE Midcap and Smallcap indices falling by around 0.5%. What’s Behind the Market Decline? Experts have identified five key reasons contributing to the ongoing market downturn: 1. Tepid Q1 Earnings Performance Corporate earnings for Q1 FY26 have been underwhelming, failing to meet investor expectations. Analysts believe this mixed performance, coupled with slowing GDP growth and low inflation, is dampening confidence in a robust earnings recovery. “We need a material uptick in income growth to see broad-based consumption recovery,” said Krishnan V R, Chief of Quantitative Research at Marcellus. 2. Delay in India-US Trade Agreement The absence of a conclusive trade deal between India and the United States is also weighing on sentiment. With the US already securing deals with other countries like Japan, the prolonged India-US trade uncertainty poses risks to export competitiveness and strategic cooperation, especially in tech and defence. “Prolonged delays carry risks of retaliatory tariffs and missed opportunities,” warned Sankhanath Bandyopadhyay, Economist at Infomerics. 3. Foreign Capital Outflows There has been heavy selling by foreign portfolio investors (FPIs), who have withdrawn nearly ₹26,395 crore from Indian equities in July amid concerns over stretched valuations. While FPIs are still participating in IPOs and primary markets, they are exiting the secondary market aggressively. “FIIs are turning sellers in the cash segment due to relatively cheaper valuations in other global markets,” said VK Vijayakumar, Chief Investment Strategist, Geojit. 4. Lack of Fresh Market Triggers The markets are currently devoid of strong, fresh triggers. Investors are choosing to book profits on rallies, with the market reacting more to stock-specific news and tariff developments, rather than broad economic momentum. While long-term sentiment remains broadly positive, near-term trends are being dictated by news flows and Q1 earnings volatility. 5. Technical Weakness From a technical standpoint, the Nifty 50 is facing resistance at 25,340, and unless it closes decisively above this level, downside risks remain. “A fall to 24,800–24,900 remains a real possibility unless a strong breakout occurs,” noted Akshay Chinchalkar, Head of Research at Axis Securities. Conclusion While the long-term market outlook remains optimistic, short-term pressures from earnings disappointments, geopolitical uncertainties, and technical resistance levels are driving volatility. Analysts suggest investors tread cautiously until stronger domestic and global cues emerge to support a sustainable rally.

Read More
Editor04 mins

Rupee Gains 5 Paise to 86.26 Against Dollar Amid Positive Equities and Global Trade Uncertainty

The Indian rupee appreciated by 5 paise to 86.26 against the US dollar in early trade on Tuesday, buoyed by a positive trend in domestic equity markets. However, the currency traded in a narrow range as uncertainty over global tariff developments kept forex markets cautious. At the interbank foreign exchange, the rupee opened at 86.26, up from its previous close of 86.31. In initial trades, it also touched 86.29 against the greenback. On Monday, the rupee had depreciated by 15 paise amid foreign fund outflows and trade concerns. According to forex traders, lingering doubts over global tariff alignments — especially ahead of the August 1 deadline for international trade agreements — have kept currencies in tight ranges. The dollar index, which measures the US dollar against six major global currencies, inched up by 0.03% to 97.88 as investors remained watchful of potential trade deals. In commodities, Brent crude, the global oil benchmark, declined 0.81% to USD 68.65 per barrel in futures trade. Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP, attributed the fall to fears of a brewing US-EU trade conflict, which could dent global economic activity and dampen oil demand. Bhansali also noted that while foreign portfolio investors (FPIs) are showing strong demand for dollars, the RBI has been selling dollars at the upper end of the band to protect the rupee from excessive depreciation. All eyes are now on the outcome of the ongoing India-US trade negotiations. A US delegation is expected to visit India in August for the next round of talks, following the conclusion of the fifth round of discussions last week in Washington. The looming August 1 deadline for tariff-related decisions could significantly impact Indian exports and the rupee if a deal is not reached or gets delayed. In the domestic equity market, sentiment remained upbeat. The Sensex rose 149.47 points (0.18%) to 82,349.81, while the Nifty climbed 36.80 points (0.15%) to 25,126.20. Despite the positive equity cues, foreign institutional investors (FIIs) offloaded equities worth ₹1,681.23 crore on a net basis on Monday, as per exchange data. With global uncertainty and key trade deadlines approaching, forex and equity markets are expected to remain volatile in the coming days.

Read More
Editor03 mins

Reliance Industries Shares Dip Despite Strong Q1 Earnings; Profit Jumps 78% YoY

Shares of Reliance Industries Ltd (RIL) fell by as much as 2.39% to ₹1,440.60 apiece on the NSE on Monday, July 21, despite the company reporting a sharp surge in quarterly profit. The dip comes shortly after the Mukesh Ambani-led conglomerate posted its Q1 FY26 results on Friday, July 18. Q1 FY26 Financial Highlights: The massive jump in net profit was largely attributed to a 280% surge in other income, which stood at ₹15,119 crore for the quarter. This included ₹8,924 crore in gains from the sale of listed investments, most notably from multiple tranches of Reliance’s stake in Asian Paints. Segment-Wise Performance: 🔹 Jio Platforms (Telecom Arm): 🔹 Reliance Retail Ventures: Market Reaction Despite the robust earnings report, investors seemed cautious, possibly due to: Analysts may look for more sustainable growth in core operating income and future guidance before revising stock outlooks. However, the overall quarterly performance of Reliance Industries across telecom, retail, and energy remains strong and stable.

Read More
Editor02 mins

Tesla Finally Launches in India with Mumbai Showroom, Model Y on Display

After nearly a decade of anticipation, Tesla has officially entered the Indian market, opening its first showroom — dubbed an “Experience Center” — in Mumbai. This major milestone comes nine years after CEO Elon Musk first teased Tesla’s India plans in April 2016, and follows years of delays, negotiations, and regulatory hurdles. Located in the upscale Maker Maxity Mall in Mumbai’s Bandra Kurla Complex (BKC), the 4,000-square-foot showroom currently showcases the Model Y in two variants: rear-wheel drive (RWD) and long-range RWD. Both models are being imported from Tesla’s Shanghai Gigafactory. Pricing and Orders The Model Y RWD is priced at ₹59,89,000 (approx. $68,000), while the long-range RWD variant will cost ₹67,89,000 (approx. $79,000). Tesla is also offering its Full Self-Driving (FSD) add-on in India at ₹6,00,000 (approx. $7,000). Indian customers can place orders starting today by paying a non-refundable deposit of ₹22,220 (around $260). Initially, the Model Y will be registered in Delhi, Gurugram, and Mumbai. Deliveries for the RWD variant are expected in Q3 of 2025, while long-range RWD deliveries will commence in Q4. Charging Infrastructure and Expansion In preparation for deliveries, Tesla will set up four charging stations each in Mumbai and Delhi, which will include both Superchargers and destination chargers. A second Tesla Experience Center is also slated to open in Delhi later this month, signaling a wider rollout plan across India. TechCrunch reports that Tesla also intends to begin importing vehicles from its Berlin Gigafactory once the India-EU free trade agreement is signed. India’s EV Market and Government Push India, the world’s fourth-largest automotive market after China, the U.S., and Japan, produces around 6 million vehicles annually. However, its electric vehicle (EV) market is still in a nascent stage, dominated largely by two-wheelers. The Indian government has set an ambitious goal of achieving 30% EV penetration in all auto sales by 2030. Tesla’s India entry follows multiple high-level discussions between Elon Musk and Prime Minister Narendra Modi. Initially, the Indian government encouraged Tesla to manufacture locally, but Tesla insisted on first testing the market through imports. Back in 2016, Tesla had taken $1,000 deposits from Indian customers for the then-upcoming Model 3, but later refunded them as launch plans remained uncertain. With this long-awaited entry finally materializing, Tesla now looks poised to tap into the growing Indian EV market — starting with the Model Y.

Read More
Editor04 mins

Bitcoin Surges Past $120,000 Amid Policy Optimism and Rising Institutional Demand

Bitcoin soared to an all-time high of $123,153.22 on Monday, breaking the $120,000 mark for the first time in its history. The world’s largest cryptocurrency was last trading 2.4% higher at around $122,000, driven by growing investor optimism surrounding potential U.S. regulatory breakthroughs and a wave of institutional interest. The rally comes as the U.S. House of Representatives prepares to debate several key cryptocurrency-related bills that could finally establish a long-awaited regulatory framework for the digital asset industry. Among them is the Genius Act, which proposes comprehensive federal guidelines for stablecoins, and the Clarity Act, which seeks to define digital assets more clearly under existing securities laws. “Crypto President” Support and Market Momentum The surge has been further boosted by U.S. President Donald Trump, who has openly backed the crypto industry and recently declared himself the “crypto president.” His administration has prioritized digital asset regulation, and he has called on lawmakers to adopt crypto-friendly legislation. “It’s riding a number of tailwinds at the moment,” said Tony Sycamore, a market analyst at IG. “Strong institutional demand, expectations of further gains, and support from Trump are all fuelling the bullish momentum. It looks like it can easily have a look at the $125,000 level now.” Bitcoin has gained 30% year-to-date, triggering a wider rally across the crypto sector even amid ongoing global uncertainty around trade and tariffs. Broader Crypto Market Follows the Rally Gracie Lin, CEO of OKX Singapore, highlighted an evolving perception of Bitcoin’s role in the financial ecosystem.“Bitcoin is increasingly being seen as a long-term reserve asset,” she said. “That shift is not just from retail and institutional players, but also some central banks and Asian wealth managers, which indicates structural change, not hype.” Crypto Week in Washington Earlier this month, U.S. lawmakers designated the week of July 14 as “Crypto Week.” A series of votes are expected on major legislation, including: Crypto Stocks Rally Too In the equity markets, crypto stocks and ETFs saw gains as well. In U.S. premarket trading, shares of Coinbase, one of the largest crypto exchanges, moved higher in anticipation of the positive regulatory outlook. As Bitcoin flirts with the $125,000 level, market participants remain focused on U.S. legislative developments and global economic signals to gauge the sustainability of this rally.

Read More
Editor04 mins

Markets React Cautiously as Trump Threatens New Tariffs; Bitcoin Hits Record High

The euro dropped to a three-week low early Monday while the U.S. dollar made modest gains, following President Donald Trump’s announcement of a potential 30% tariff on imports from the European Union and Mexico, set to take effect from August 1. The announcement was made via letters to EU Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum, which Trump posted on his Truth Social account. Despite the tariff threats, financial markets showed restrained reactions. The euro slipped briefly but later regained some ground, last trading 0.13% lower at $1.1676. The dollar rose 0.28% against the Mexican peso to 18.6763, while sterling declined 0.15% to $1.3470. The Japanese yen strengthened marginally, trading at 147.31 per dollar. Currency strategist Carol Kong of the Commonwealth Bank of Australia noted that markets appear increasingly desensitized to Trump’s frequent trade threats. “It seems like financial markets have become insensitive to President Trump’s tariff threats now, after so many of them in the past few months,” she said. Bitcoin Hits Historic High Amid this trade uncertainty, Bitcoin surged to a record high, crossing the $120,000 mark for the first time. It last traded 2.6% higher at $122,248.59, buoyed by optimism over potential regulatory wins for the crypto sector this week. Ether also rose, gaining 2% to $3,052. Trump Targets Fed Again In another headline-grabbing move, Trump said on Sunday it would be a “great thing” if Federal Reserve Chair Jerome Powell stepped down. He repeated his call for lower interest rates, threatening the independence of the central bank. Markets are currently pricing in over 50 basis points of Fed rate cuts by December, with key U.S. inflation data due on Tuesday likely to shape those expectations. Mixed Data from Asia In China, new data on Monday showed exports and imports rebounded in June, as businesses rushed shipments amid a temporary trade truce with the U.S. Still, the Chinese yuan remained relatively stable, with the onshore unit at 7.1706 and the offshore at 7.1710 per dollar. Investors are now awaiting China’s GDP data, set to be released Tuesday, for deeper insights into the world’s second-largest economy. Growth is expected to have slowed in Q2 amid rising U.S.-China trade tensions and ongoing deflationary pressures. Meanwhile, other major currencies showed slight movements: As global markets tread cautiously, investors remain focused on tariff developments, upcoming inflation data, and macroeconomic indicators from China to assess the path ahead.

Read More
Editor04 mins

Trump Escalates Trade Tensions with Canada, Announces 35% Tariffs Amid Growing Rift

In a letter dated Thursday, July 10, 2025, U.S. President Donald Trump announced plans to impose a 35% tariff on many imported goods from Canada, significantly escalating trade tensions between the two long-time allies. The move deepens a growing rift in the North American partnership that has endured for decades. The letter, addressed to Canadian Prime Minister Mark Carney, marks a sharp increase from the 25% tariff rates first imposed in March. At the time, Mr. Trump cited the need to curb fentanyl trafficking, despite minimal smuggling of the drug from Canada. He also expressed concern over the U.S. trade deficit with Canada — a gap largely attributed to America’s oil imports. “I must mention that the flow of Fentanyl is hardly the only challenge we have with Canada, which has many Tariff, and Non-Tariff, Policies and Trade Barriers,” Mr. Trump wrote in the letter, framing the tariffs as a response to broader trade grievances. The increased tariffs are set to take effect on August 1, creating weeks of uncertainty for global markets. Although recent gains in the S&P 500 suggest investor confidence that Mr. Trump may ultimately reverse the decision, the looming implementation has already sparked concern. Canada, the United States’ second-largest trading partner after Mexico, has responded with retaliatory tariffs and sharp rebukes of Mr. Trump’s rhetoric — including his past suggestion of making Canada the “51st state.” Unlike Mexico, which also faces 25% tariffs over fentanyl-related concerns, Canada has received significantly more public pressure from the U.S. administration. Prime Minister Carney, elected in April on a platform emphasizing Canadian independence and assertiveness, has taken steps to reduce Canada’s dependence on U.S. trade. He is actively working to build closer ties with the European Union and the United Kingdom. Just hours before receiving Trump’s letter, Carney posted a photo with British Prime Minister Keir Starmer, stating, “In the face of global trade challenges, the world is turning to reliable economic partners like Canada” — a thinly veiled critique of Trump’s erratic trade policies. While the May meeting between Carney and Trump at the White House appeared publicly cordial, Trump reportedly told Carney that there was nothing he could say that would persuade him to lift the tariffs. “Just the way it is,” Trump remarked. Carney has maintained a calm and diplomatic tone, suggesting that trade issues will require time and dialogue to resolve. “There are much bigger forces involved,” he said, “and this will take some time and some discussions.” Trump’s letter to Canada is part of a broader campaign. He has sent similar tariff letters to 23 countries. Notably, a separate letter this week announced a 50% tariff on Brazil, targeting the nation’s handling of former President Jair Bolsonaro’s trial. Trump himself faces similar legal scrutiny over efforts to overturn the 2020 U.S. election results. These tariff letters underscore the Trump administration’s struggle to finalize trade deals that were once promised to be easily negotiated. His April 2 “Liberation Day” announcement introduced a 10% baseline tariff on most imports, followed by a 90-day negotiation window. However, with the latest letters, those 10% rates are giving way to a more aggressive tariff reset strategy. As August 1 approaches, all eyes are on whether President Trump will stand by the 35% tariff hike or yield to mounting diplomatic and market pressures.

Read More
Editor06 mins

Nvidia Briefly Hits $4 Trillion Market Cap, Solidifying AI Dominance

Nvidia Corp. (NVDA.O) briefly reached a $4 trillion market capitalization on Wednesday, becoming the first company in history to do so and reaffirming its dominant role in the artificial intelligence (AI) revolution. The milestone underscores Wall Street’s soaring confidence in the future of AI and Nvidia’s indispensable position in that landscape. Surging Stock and Historic Valuation Nvidia’s shares rose as much as 2.8% to an all-time high of $164.42 during trading, driven by continued strong demand for its high-performance AI chips. The stock ended the session up 1.80%, with a closing market value of $3.97 trillion. This rally marks a dramatic turnaround from its dip earlier in the year, when Chinese competitor DeepSeek briefly dampened investor sentiment with a low-cost AI model. In just over one year, Nvidia has tripled its market cap—having hit the $1 trillion mark in June 2023—outpacing the growth trajectories of tech giants Apple and Microsoft, which also hold market caps above $3 trillion. AI Boom Powers Growth The growth of AI has supercharged Nvidia’s valuation, with analysts and investors noting that companies are redirecting capital towards AI infrastructure, a field Nvidia dominates. “It highlights the fact that companies are shifting their asset spend in the direction of AI. It’s pretty much the future of technology,” said Robert Pavlik of Dakota Wealth. Nvidia’s AI chips power everything from data centers to generative AI applications like ChatGPT and Google’s Gemini, making it a critical supplier to major tech firms like Microsoft, Amazon, and Alphabet. Outperforming Global Markets Revenue and Valuation Metrics Challenges Ahead Despite its dominant position, Nvidia faces rising competition from AMD and other chipmakers offering more affordable AI solutions. Moreover, Nvidia’s top customers, including Microsoft and Amazon, are under shareholder pressure to curb AI-related expenditures, which could affect future chip demand. Still, Nvidia’s continued technological leadership and strong quarterly forecasts suggest it remains the undisputed leader in the AI-driven semiconductor space. In Summary: Nvidia’s brief rise to a $4 trillion valuation is not just a market milestone—it is a reflection of how deeply AI has reshaped global investing priorities, with Nvidia at the epicenter of this shift.

Read More
Editor04 mins

Tesla Shares Plunge as Elon Musk Launches Political Party, Sparking Investor Jitters

Tesla shares took a major hit on Monday, plummeting 6.8% to close at $293.94 on the Nasdaq, following CEO Elon Musk’s surprise announcement that he is launching a political party named the ‘America Party.’ The move has heightened investor concerns that Musk’s growing political interests are further distracting him from Tesla’s core business, which is already facing declining sales and increased competition. One of Tesla’s Worst Days in 2025 The sharp decline marked one of the worst single-day performances for Tesla this year. In monetary terms, the EV giant lost more than $68 billion in market capitalization in a single session. If the downward trend continues, analysts estimate that Tesla could shed over $80 billion in valuation, raising questions about the company’s long-term stability and leadership. Political Feud with Trump Escalates The controversy escalated after Musk had a very public falling out with former ally and current U.S. President Donald Trump, particularly over a tax-cut and spending bill. Trump mocked Musk’s new party as “ridiculous” and threatened to cut off billions in federal subsidies to Musk’s companies. The feud, which began in early June, previously wiped $150 billion off Tesla’s value in a single day during that period. Investor Concerns Over Distraction and Leadership Musk’s political ambitions are prompting renewed scrutiny of Tesla’s governance. While Tesla Chair Robyn Denholm denied earlier reports of efforts to replace Musk, the latest developments have reignited debate over the board’s oversight. Some analysts argue that Musk’s increasing political entanglement is eroding public trust and shifting focus away from Tesla’s innovation and performance. “The company is set to lose more than $80 billion in market valuation if current losses hold,” said Jed Dorsheimer, an equity analyst, as quoted by Bloomberg. Musk’s Net Worth Takes a Hit The fallout also dented Musk’s personal fortune. On Monday alone, his net worth dropped by $15.3 billion, reducing his year-to-date wealth loss to $86.7 billion, according to the Bloomberg Billionaires Index. Despite the dip, Musk remains the world’s richest person, with an estimated net worth of $346 billion. What’s Next for Tesla? With Tesla shares already down 27% this year, largely attributed to Musk’s political distractions and market headwinds, investors are watching closely for any corrective measures from the board or leadership reassurances from Musk. As Tesla juggles falling consumer demand, rising competition, and internal distractions, the road ahead may prove turbulent unless priorities are refocused.

Read More
Editor04 mins

SEBI Ban on Jane Street Sparks Sell-Off in Capital Market Stocks Over Index Manipulation Allegations

Shares of several capital market service providers—including BSE, Angel One, Motilal Oswal Financial Services, CDSL, and Edelweiss Financial Services—saw sharp declines on Thursday following the Securities and Exchange Board of India (SEBI) issuing a ban on Jane Street Group and associated entities for allegedly manipulating the Bank Nifty index on expiry days. Stocks React to SEBI Action The fallout from SEBI’s July 3 interim order was immediate: Analysts attributed the sell-off to fears that trading volumes may drop, as Jane Street is known for being a high-volume trader in derivatives and options, contributing significantly to market liquidity. The Alleged Manipulation Strategy SEBI’s investigation alleges a systematic index manipulation strategy executed by Jane Street entities on 14 Bank Nifty expiry days: This strategy was allegedly designed to engineer a softer index close, allowing Jane Street to profit heavily on short options positions. One example cited was January 17: SEBI’s Interim Order Highlights The SEBI order is a significant regulatory move to curb sophisticated forms of index manipulation and highlights how quant-driven high-frequency trading firms may face increasing scrutiny in Indian markets. Investors and brokers are now closely watching the broader market implications, particularly on expiry days, when volumes and volatility typically peak.

Read More
Editor03 mins
Switch Language »