Sensex Slides Nearly 500 Points as Crude Oil Shock Keeps Nifty Below 24,100

Indian equities remained firmly bearish on Tuesday afternoon as renewed West Asia tensions and rising crude oil prices kept buyers on the sidelines. By around 2:20 PM, the Sensex was hovering near 77,125, down about 490 points or 0.63 per cent, while the Nifty 50 stood at 24,058, lower by 153 points or 0.63 per cent. The decline was broad, with 35 of the 50 Nifty constituents trading in the red.

The pressure was sharper in the broader financial space. Nifty Bank was down around 1.20 per cent near 57,435, with all 14 constituents trading lower at one point. The Nifty Midcap 100 slipped about 0.59 per cent, while the Nifty Smallcap 100 fell nearly 1.01 per cent. Market breadth stayed weak, with 71 of 100 midcap stocks and 79 of 100 smallcap stocks declining.

Sectorally, metals and pharmaceuticals offered some relief. Nifty Metal gained about 1.04 per cent, supported by Hindalco, NMDC and Tata Steel, while Nifty Pharma rose around 0.89 per cent amid defensive buying and strength in Biocon. Healthcare also remained among the better performing pockets.

On the other side, Nifty Realty fell close to 2 per cent, while Nifty Auto declined more than 1 per cent as the jump in crude revived concerns over inflation, input costs and discretionary demand. Nifty PSU Bank also lost around 1.3 per cent, while financial services remained under pressure as investors reduced exposure to rate sensitive sectors.

Among individual stocks, Biocon jumped about 7.6 per cent after a large block transaction involving Mylan’s stake helped clear a long standing ownership overhang. Just Dial surged nearly 12.6 per cent, extending its two day rally to about 36 per cent after a strong June quarter performance.

Landmark Cars climbed over 14 per cent after reporting a 22.47 per cent year on year rise in quarterly revenue. HCL Technologies moved in the opposite direction, falling over 4 per cent as its unchanged FY27 growth guidance overshadowed a better than expected quarterly performance.

Institutional flows remained a concern. Provisional figures for Tuesday will be available only after the market closes. In the latest available session on Monday, FIIs sold Indian equities worth Rs 3,062.27 crore, while DIIs bought shares worth Rs 2,171.70 crore, partly cushioning the foreign selling.

Global cues were mixed, but the oil spike dominated sentiment. Brent crude moved above USD 85 per barrel as US Iran tensions intensified around the Strait of Hormuz. Overnight, the S&P 500 fell 0.8 per cent, the Nasdaq declined 1.6 per cent and the Dow slipped 0.3 per cent.

Asian markets were mixed, while China recovered after stronger export data. A firmer US dollar also kept pressure on emerging market assets.

For the closing hour, Nifty’s 24,000 level remains the immediate support. A sustained move above 24,100 may improve the tone, while 24,300 to 24,400 remains the next resistance zone. Traders will closely track crude oil, US CPI data, developments in West Asia and upcoming Q1 results, including Wipro’s numbers on July 16.

This is market commentary and should not be treated as a trading or investment recommendation.

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