Closing Bell: Nifty 50 Ends Below 24,000 Extending Losses for 3rd Straight Session; Sensex Drops 715 Points as Brent Crude Nears $95

The Nifty 50 and Sensex extended losses for a third consecutive session on July 22 as Brent crude climbed near USD 95 amid escalating Middle East tensions. Banking and media stocks dragged the market lower, while FMCG outperformed. Bandhan Bank plunged after weak guidance, whereas Bajaj Auto and TVS Motor rallied on strong quarterly earnings, lifting select auto stocks.

The Indian stock market ended lower for the third consecutive trading session on Wednesday, July 22, as rising crude oil prices and escalating geopolitical tensions in the Middle East weighed on investor sentiment. Brent crude climbed to its highest level in more than five weeks, raising concerns over inflation, corporate margins and India's import bill.

The Nifty 50 opened at 24,150.45 and touched an Intraday high of 24,166.30 before witnessing sustained selling pressure through the session. Although the benchmark attempted to recover multiple times, each rebound attracted fresh selling. The index slipped to an intraday low of 23,961.40 during the afternoon before trading in a narrow range around the 24,000 mark. A late recovery briefly pushed the index above 24,020, but it failed to hold gains and settled below the key psychological level.

The Nifty 50 closed at 23,996.25, down 191.45 points, or 0.79 per cent. The Sensex declined 715.06 points, or 0.92 per cent, to end at 76,755.05. The Bank Nifty also came under pressure, falling more than 700 points, or 1.23 per cent. Meanwhile, India VIX jumped 5.5 per cent to move above the 13 mark, reflecting increased market volatility.

Global sentiment remained cautious as Brent crude futures climbed close to USD 95 per barrel, the highest level since June 11, and were on track for a fourth consecutive day of gains. The rally followed reports that two oil tankers carrying Saudi crude to Asia reversed course in the Red Sea, while another tanker was hit in the Strait of Hormuz. The developments intensified concerns over potential disruptions to global energy supplies. For India, the world's third-largest crude importer, sustained higher oil prices could increase inflationary pressures, widen the trade deficit and impact corporate profitability.

Sectoral performance remained largely weak, with only two of the 11 major sectoral indices ending in positive territory. The Nifty Midcap 100 index declined 1.09 per cent, while the Nifty Smallcap 100 index fell 1.54 per cent, extending the correction seen over the past two weeks.

Among sectors, the Nifty FMCG index was the top performer, rising 0.65 per cent with 12 of its 15 constituent stocks closing higher. In contrast, the Nifty Media index emerged as the biggest laggard, dropping 2.68 per cent, marking its sharpest single-day decline since May 12.

Stock-specific action remained active. Bandhan Bank plunged 16.92 per cent after lowering its full-year return-on-assets guidance due to expectations of narrower net interest margins and higher operating expenses. Bajaj Auto gained 5.72 per cent and TVS Motor rose 3.05 per cent after both companies reported strong quarterly earnings. HDFC Bank fell another 1.09 per cent, extending its post-results decline to nearly 8 per cent over the past three trading sessions following weaker-than-expected net interest margins in the first quarter.

Among the biggest contributors to the Nifty 50, Bajaj Auto added 13.89 points, followed by Nestle India with 6.50 points and Power Grid Corporation of India with 2.57 points. On the downside, ICICI Bank was the biggest drag on the index, shaving off 35 points, followed by HDFC Bank at 27.71 points and Reliance Industries at 22.24 points.

Market breadth remained firmly negative. Of the 3,409 stocks traded on the NSE, 1,068 advanced, 2,232 declined and 109 closed unchanged. Within the Nifty 500 index, 410 stocks ended lower, 89 advanced and one stock remained unchanged, indicating that more than 80 per cent of the constituents finished in negative territory.

During the session, 80 stocks touched their 52-week highs, while 57 hit fresh 52-week lows. Additionally, 86 stocks were locked in their Upper Circuits, whereas 77 stocks hit their Lower Circuits.

Disclaimer: The article is for informational purposes only and not investment advice.