Closing Bell: Nifty 50 Falls 0.66%, Snaps 3-Day Winning Streak as Sensex Drops 561 Points

The Indian stock market ended lower on Tuesday, July 14, as rising geopolitical tensions in the Middle East pushed crude oil prices higher, raising concerns over inflation and economic growth in India, the world's third-largest oil importer. Weakness in Banking and heavyweight stocks further weighed on market sentiment, leading the benchmark indices to snap their recent winning streak.

The Nifty 50 opened more than 140 points lower and attempted to recover during the session, touching an Intraday high of 24,157.10. However, selling pressure intensified in the second half, dragging the index towards the 24,000 mark. The Nifty 50 settled at 24,052.05, down 158.95 points, or 0.66 per cent, ending its three-day winning streak. The Sensex declined 561.46 points, or 0.72 per cent, to close at 77,054.94. The Bank Nifty also remained under pressure, falling over 600 points or 1.15 per cent. Meanwhile, India VIX, the market's fear gauge, rose 3.5 per cent to 13.75, indicating increased volatility.

Investor sentiment weakened after Brent crude briefly crossed the USD 85 per barrel mark, its highest level since the U.S. and Iran signed a memorandum of understanding to end the conflict on June 17. Higher crude oil prices are considered negative for India as they increase the country's import bill, widen the fiscal deficit, fuel inflationary pressures and squeeze corporate profit margins.

The Indian rupee weakened past the key psychological level of 96 against the U.S. dollar, reversing gains seen after recent measures aimed at attracting dollar inflows. The domestic currency declined 0.56 per cent to 96.16 per U.S. dollar, its weakest level since late May. The fall came after oil prices surged following the U.S. reimposing its naval blockade on Iran while tensions escalated in the Strait of Hormuz.

Sectoral performance remained largely weak, with only two of the 11 major NSE sectoral indices ending in positive territory. The Nifty Midcap 100 index fell 0.44 per cent, while the Nifty Smallcap 100 index declined 1.01 per cent. Both broader market indices also snapped their three-day winning streak.

The Nifty Pharma index emerged as the best-performing sector, rising 1.06 per cent, with 16 of its 20 constituents ending higher. Biocon, Divi's Laboratories and Gland Pharma were among the Top Gainers. In contrast, the Nifty Realty index was the worst-performing sector, falling 1.97 per cent. Lodha Developers led the decline as investors booked profits following the sector's strong rally in recent sessions.

Among individual stocks, HCL Technologies dropped 4.46 per cent after maintaining its growth outlook, which highlighted continued demand uncertainty and slower revenue conversion. Biocon surged 6.41 per cent, leading gains in the pharma space. Around 46 million shares of the company changed hands in a block deal during the session. According to a Reuters report, Viatris' Mylan plans to sell up to 92 million Biocon shares worth as much as USD 363 million.

Bharti Airtel contributed the most to the Nifty 50's gains, adding 23.57 points, followed by Sun Pharmaceutical Industries with 5.01 points and Tata Consultancy Services with 4.26 points. On the downside, HDFC Bank emerged as the biggest drag on the index, shaving off 28.58 points. Larsen & Toubro contributed a negative 20.40 points, while State Bank of India weighed on the index by 19.49 points.

Market breadth remained negative on Tuesday. Of the 3,410 stocks traded on the NSE, 1,022 advanced, while 2,278 declined and 110 remained unchanged. A total of 95 stocks touched their 52-week highs, whereas 44 stocks hit their 52-week lows. Additionally, 83 stocks were locked in their Upper Circuits, while 73 stocks hit their Lower Circuits.

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