Sensex Tumbles Over 750 Points, Nifty Slips Below 24,000 as Crude Oil Fuels Market Selloff

Indian equity markets remained firmly under pressure on Wednesday, extending their decline for the third consecutive session. At around 2:25 PM, the Sensex was trading 753.77 points, or 0.97 per cent, lower at 76,716.34. The Nifty 50 declined 207.05 points, or 0.86 per cent, to 23,980.65 as selling intensified across Banking, realty, information technology and pharmaceutical counters.

Weakness was more pronounced in the broader market. The Nifty Bank dropped 1.42 per cent to 57,016.60, weighed down by losses in SBI, Kotak Mahindra Bank, HDFC Bank and Axis Bank. The Nifty Midcap 100 declined 1.16 per cent, while the Nifty Smallcap 100 slipped 1.52 per cent. Market breadth remained firmly negative, with 1,260 shares advancing against 2,557 declining shares. India VIX jumped 5.87 per cent, indicating rising nervousness among traders.

Sectoral performance reflected broad based risk aversion. The Nifty Realty index was the biggest loser, falling 2.59 per cent, followed by the Nifty PSU Bank index, which declined 2.06 per cent. The Nifty IT index slipped 1.57 per cent, while the Nifty Pharma index lost 1.46 per cent. Pharmaceutical stocks came under additional pressure after the United States announced phased tariffs on imported generic medicines.

Only two major sectoral indices managed to stay in positive territory. The Nifty FMCG index gained 0.49 per cent, supported by buying in Nestle India, Tata Consumer Products and Hindustan Unilever. The Nifty Auto index rose 0.15 per cent as strong quarterly performances from two wheeler manufacturers attracted buying interest.

Among individual stocks, Bajaj Auto jumped 5.33 per cent after its quarterly EBITDA and profit exceeded estimates by 5 to 7 per cent, supported by better margins. Cyient DLM surged 11.81 per cent after its June quarter profit more than doubled and revenue increased 34.3 per cent.

On the losing side, Bandhan Bank plunged 16.23 per cent after management lowered its FY27 exit return on assets guidance to 1.2 to 1.4 per cent from 1.6 to 1.8 per cent. IndiGo declined 3.51 per cent as the surge in crude oil prices raised concerns over aviation fuel costs.

In the latest available institutional data for July 21, foreign institutional investors were net buyers of shares worth Rs 1,650.16 crore. Domestic institutional investors, however, recorded net selling of Rs 656.88 crore in the cash market.

Global cues were mixed. Overnight, the Nasdaq gained 1.3 per cent, the S&P 500 rose 0.9 per cent and the Dow advanced 0.7 per cent. Asian markets traded mixed, with South Korea’s Kospi gaining around 1.5 per cent while Hong Kong fell 1.2 per cent. However, Brent crude climbing towards USD 94 per barrel and the Dollar Index hovering near a one week high overshadowed the positive Wall Street handover.

Going into the closing hour, the Nifty’s ability to defend the 23,800 zone will remain crucial. A recovery above 24,000 could bring some stability, while 24,400 remains the key overhead resistance. Crude oil movements, developments in West Asia and quarterly earnings from major companies will continue to guide near term sentiment.

This remains a volatile, news driven market, and the commentary reflects the prevailing market conditions rather than any investment recommendation.

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