Sensex drops 600 points, Nifty falls below 24,950 as weak Q1 results from Axis Bank contribute to market downturn

📉 Market Performance

• Sensex dropped approximately 600 points, tumbling around 0.76% to roughly 81,630 The Economic Times+2The Economic Times+2Business Standard+2Fortune India+11Moneycontrol+11Business Standard+11.
  
• Nifty 50 fell below 24,950, down nearly 0.74%, hovering around 24,925–24,950 Bajaj Broking+3Moneycontrol+3The Economic Times+3.
  
• The Financials, particularly the Nifty Bank and private bank indices, led the decline—falling up to 1.1% Reuters+1Business Standard+1.
  

🔍 Axis Bank Q1 Summary

• Reported standalone net profit of ₹5,806 cr—a 4% YoY decline from ₹6,035 cr last year Bajaj Broking+9The Economic Times+9The Economic Times+9.
  
• Earnings hit by higher provisions nearly doubling YoY (~₹3,948 cr vs ₹2,039 cr) The Times of India+2The Economic Times+2The Economic Times+2.
  
• A one-off “technical impact”—changes in NPA classification—further weighed on profits Business Today+1The Economic Times+1.
  
• Net Interest Margin (NIM) slipped from 4.05% to 3.80%, and credit costs rose into the 1.3–1.5% range The Economic Times+2Reuters+2Business Today+2.
  

📉 Axis Bank Share Reaction

• Shares plunged between 4% and 7% intraday, making Axis the top loser on Sensex and Nifty Value Research Online+10Reuters+10Business Standard+10.
  
• In early trade, the drop magnified to 6–7.4%, touching lows near ₹1,073 on the BSE Fortune India+1The Economic Times+1.
  

🌐 Wider Context & Outlook

• The broader mid-cap and small-cap segments also retreated modestly, reflecting cautious investor sentiment Reuters.
  
• Despite today’s losses, there’s optimism that earnings may recover in H2 FY26, potentially limiting further declines .
  
• Positive global cues—led by strong U.S. retail and labor data—have offered some offset, though markets remain tilted down The Economic Times+2Reuters+2The Economic Times+2.
  

✅ Summary Version

Sensex plunged ~600 pts to ~81,630 and Nifty dropped below 24,950 on July 18, driven by weak Q1 results from Axis Bank—its profit fell 4% YoY due to higher provisions, technical NPA adjustments, and shrinking margins. Axis stock sank as much as 7%, triggering sector-wide losses among financials, while broader markets kept a wary eye on future earnings recovery.

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