Nifty 50 Falls for 4th Straight Session as Crude Nears $100 Amid US-Iran Tensions

The Indian stock market extended its losing streak for the fourth consecutive session on Thursday, July 23, as rising crude oil prices and escalating geopolitical tensions weighed on investor sentiment. The Nifty 50 and Sensex ended lower after Brent crude climbed close to USD 100 per barrel following fresh U.S. strikes on Iran and attacks by Yemen's Houthis on oil tankers in the Red Sea, dampening global risk appetite.

Higher crude oil prices remain a significant concern for India, the world's third-largest importer and consumer of crude oil, as they can fuel inflation, widen the trade deficit, hurt economic growth, and pressure corporate profitability.

The Nifty 50 opened at 23,904.80 and briefly touched an Intraday high of 23,990.75. However, persistent selling from the late morning session dragged the index sharply lower. Selling pressure intensified after noon, pushing the benchmark to an intraday low of 23,807.20 before some late buying helped trim losses. Despite the recovery, the index remained below its opening level, reflecting cautious market sentiment.

The Nifty 50 settled at 23,869.60, down 126.65 points, or 0.53 per cent, marking its fourth straight day of losses. The Sensex also ended lower, falling 363.66 points, or 0.47 per cent, to close at 76,391.39. Both benchmark indices continued to trade below all their key moving averages, indicating sustained weakness. Meanwhile, the Bank Nifty declined 0.94 per cent, losing more than 500 points, while India VIX rose 1.37 per cent to hover near the 13.5 mark, signalling increased market volatility.

Sectoral performance remained weak, with only two of the 11 major sectoral indices ending in positive territory. The broader market underperformed the benchmark indices as the Nifty Midcap 100 declined 0.99 per cent and the Nifty Smallcap 100 fell 1.01 per cent, extending losses for the second consecutive session.

Among sectoral indices, the Nifty Auto index emerged as the top performer, gaining 0.7 per cent. Hero MotoCorp led the rally, rising more than 3 per cent to hit a five-month high. In contrast, the Nifty Realty index was the biggest loser, dropping 1.81 per cent for a second straight session, with all its constituent stocks ending in negative territory.

Stock-specific action remained in focus. Dr Reddy's Laboratories declined 1.39 per cent after reporting weak quarterly earnings, which dampened investor sentiment. HPCL slipped 2.54 per cent following disappointing Quarterly Results that triggered selling in the state-owned oil marketing company. Defying the broader market weakness, NTPC Green Energy surged 6.48 per cent after reporting a marginal increase in quarterly profit.

On the Nifty 50, Mahindra & Mahindra contributed the most to the index's gains with 10.57 points, followed by Tata Consultancy Services with 7.70 points and Bajaj Auto with 6.69 points. On the downside, Reliance Industries emerged as the biggest drag, pulling the index down by 24.15 points. HDFC Bank and Bharti Airtel also weighed heavily on the benchmark, contributing negative 19.69 points and 12.22 points, respectively.

Market breadth remained firmly negative, highlighting the broad-based weakness across the market. Of the 3,387 stocks traded on the NSE, 1,155 advanced, while 2,101 declined and 131 remained unchanged. During the session, 63 stocks touched their 52-week highs, whereas 55 stocks hit fresh 52-week lows. Additionally, 78 stocks were locked in their Upper Circuits, while 86 stocks hit their Lower Circuits.

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