Sensex, Nifty Extend Decline as Crude Oil Crosses $96

Indian equity markets remained under pressure for the fourth consecutive session on Thursday as rising crude oil prices and renewed geopolitical tensions weighed on investor sentiment. At around 10:01 am, the Sensex was trading 219 points, or 0.29 per cent, lower at 76,536.12. The Nifty 50 declined 61.85 points, or 0.25 per cent, to 23,934.40.

The weakness was more visible in the broader market. The Nifty Midcap 100 declined 0.54 per cent, while the Nifty Smallcap 100 fell 0.75 per cent. By 11:03 am, the Nifty Bank was down 274.80 points, or 0.48 per cent, at 56,852, dragged by selling in select private and public sector lenders.

Sectoral participation remained largely negative. The Nifty Oil and Gas index declined nearly 1 per cent as weak quarterly earnings from HPCL outweighed gains in upstream oil producers. The Nifty Pharma slipped around 0.8 per cent, while the Nifty Realty index lost nearly 0.7 per cent. Drug stocks were pressured by weak earnings from Dr Reddy’s Laboratories and continued concerns surrounding proposed US tariffs on imported generic medicines.

On the positive side, defensive buying supported the Nifty FMCG index, which gained around 0.65 per cent. The Nifty Auto index advanced 0.18 per cent, making it one of the few sectoral indices trading in the green.

Among individual stocks, NTPC Green Energy surged over 7 per cent after its June quarter profit increased and revenue crossed Rs 1,100 crore. Oil India gained nearly 1.8 per cent as higher crude oil prices improved the earnings outlook for upstream producers.

On the losing side, IndusInd Bank dropped around 6 per cent despite reporting a strong quarterly profit. Investors booked gains after the stock had risen 7.2 per cent over the previous six sessions. Dr Reddy’s Laboratories and HPCL declined around 3 per cent each following weaker than expected Quarterly Results.

Institutional flows also offered little support. According to the latest provisional data for July 22, foreign institutional investors sold shares worth Rs 819.20 crore. Domestic institutional investors were also net sellers, offloading equities worth Rs 418.26 crore.

Global cues were mixed. The Nasdaq Composite declined 0.53 per cent overnight, while the S&P 500 slipped 0.11 per cent and the Dow Jones ended almost unchanged. Asian markets were mostly positive, with South Korea’s Kospi rising over 3 per cent and Japan’s Nikkei gaining around 0.7 per cent. However, Brent crude moving above USD 96 per barrel overshadowed these supportive cues.

For the remainder of the session, traders will closely track whether the Nifty can recover above 24,000. On the downside, the 23,800 to 23,650 zone remains important. Earnings from Infosys, Cipla and InterGlobe Aviation, along with crude oil prices and developments in the US-Iran conflict, could drive the next market move.

Market participants may remain selective and avoid chasing sharp Intraday movements while volatility remains elevated.

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