Sensex, Nifty Remain Under Pressure as Crude Oil Nears $96; Auto Stocks Show Resilience

Indian equities remained under pressure on Thursday, extending their decline for a fourth consecutive session as rising crude oil prices and West Asia tensions kept investors cautious. At around noon, the BSE Sensex was down 150.47 points, or 0.20 per cent, at 76,604.58, while the Nifty 50 slipped 39.30 points, or 0.16 per cent, to 23,955.30.

Weakness was more visible in the broader market. The Nifty Midcap index fell around 0.65 per cent, while the Nifty Smallcap index declined 0.25 per cent. Banking shares also remained under pressure, with the Nifty Bank falling 0.71 per cent as selling in IndusInd Bank, HDFC Bank and public sector lenders weighed on the index.

Sectoral action remained largely negative, although Nifty FMCG and Nifty Auto showed relative resilience. Auto shares found support from gains in Hero MotoCorp, Bosch and Bajaj Auto. On the losing side, Nifty Pharma, Nifty Realty and Nifty Healthcare were among the weakest pockets. Pharma stocks remained under pressure following weak quarterly numbers from Dr Reddy’s Laboratories and concerns surrounding possible US tariffs on generic drug imports. Realty stocks extended their decline, with the Nifty Realty index falling about 2.6 per cent during the session.

Stock-specific action was sharp. HEG surged around 13 per cent after reporting healthy Q1FY27 numbers, with revenue and operating profit improving year on year. Tanla Platforms jumped nearly 14 per cent after its quarterly revenue rose 17.8 per cent and net profit increased 20.1 per cent. NTPC Green Energy gained 7.4 per cent after reporting a 38.2 per cent rise in quarterly profit and 62.7 per cent growth in revenue.

On the other hand, IndusInd Bank dropped about 6 per cent as traders booked profits despite a 72 per cent rise in consolidated quarterly profit. Dr Reddy’s Laboratories fell around 3 per cent following subdued earnings.

Institutional flows offered little comfort. In the latest available provisional data for July 22, foreign institutional investors were net sellers of Indian equities worth Rs 819.20 crore. Domestic institutional investors also turned net sellers, offloading shares worth Rs 418.26 crore.

Global cues were mixed. The Dow Jones ended almost flat, while the S&P 500 slipped 0.14 per cent and the Nasdaq declined 0.57 per cent overnight. Asian markets traded mostly higher, but the domestic market failed to benefit as Brent crude climbed to around USD 96 per barrel amid renewed US strikes on Iran and attacks on oil tankers in the Red Sea.

For the remainder of the session, traders will closely watch whether the Nifty can hold the 23,900 zone. A sustained break may open the way towards 23,700 to 23,600, while 24,100 remains the immediate resistance. Earnings from Infosys, Cipla and IndiGo, crude oil movements and next week’s US Federal Reserve meeting are likely to guide near-term sentiment.

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