Closing Bell: Nifty 50 Falls for 2nd Consecutive Session; HDFC Bank Drags Sensex, Realty Index Gains

The Indian stock market benchmark indices ended lower for the second straight session on Tuesday, July 21, as persistent geopolitical tensions in the Middle East and continued weakness in HDFC Bank kept investors cautious. Elevated crude oil prices also weighed on sentiment, raising concerns over inflation and corporate profitability.

The Nifty 50 opened at 24,216.05 and briefly climbed to an Intraday high of 24,262.20 before losing momentum. Selling pressure dragged the index to a low of 24,135.65, although late buying helped it recover part of the losses. At the close, the Nifty 50 settled at 24,187.70, down 50.80 points, or 0.21 per cent. The Sensex declined 238.41 points, or 0.31 per cent, to end at 77,470.11. The Bank Nifty also finished lower by 0.19 per cent, falling by more than 100 points. Meanwhile, India VIX eased around 3 per cent to hover near the 12.5 level, indicating reduced market volatility.

Brent crude hovered around USD 87 per barrel as markets balanced reports of possible U.S.-Iran mediation against fresh attacks in the region and Houthi threats to blockade Saudi Arabia. Sustained higher crude prices remain a concern for India, the world's third-largest crude oil importer, as they can fuel inflation, widen the trade deficit and put pressure on corporate margins.

Sectoral performance remained mixed, with only four of the 11 major sectoral indices ending in positive territory. The broader market outperformed the benchmark, with the Nifty Midcap 100 rising 0.30 per cent and the Nifty Smallcap 100 gaining 0.53 per cent. The Nifty Realty index emerged as the best-performing sector, advancing 1.07 per cent as all its constituents ended in the green. In contrast, the Nifty PSU Bank index declined 0.88 per cent, extending its losses for the second consecutive trading session.

Among individual stocks, Karur Vysya Bank rallied 13.06 per cent to become the top performer in the Small-Cap segment. Canara HSBC Life Insurance gained 3.23 per cent after reporting strong June quarter earnings. SBI Funds Management also made a strong stock market debut, listing at a 6.85 per cent premium to its issue price following its USD 1.03 billion initial public offering last week, supported by the long-term growth outlook for India's USD 853 billion asset management industry.

On the index contribution front, Shriram Finance added 8.03 points to the Nifty 50, followed by Mahindra & Mahindra with 7.06 points and Kotak Mahindra Bank with 6.26 points. On the downside, HDFC Bank was the biggest drag, eroding 53.92 points from the index. Reliance Industries reduced the index by 28.58 points, while State Bank of India shaved off another 14.05 points.

Despite the benchmark indices ending lower, the overall market breadth remained positive. Of the 3,436 stocks traded on the NSE, 1,812 advanced, 1,505 declined and 119 remained unchanged. During the session, 94 stocks touched their 52-week highs, while 39 stocks hit their 52-week lows. Additionally, 98 stocks were locked in their Upper Circuits, whereas 71 stocks were locked in their Lower Circuits.

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