By Our Business Correspondent
Indian equity benchmarks extended their losing streak for a third straight session on Tuesday, with the Sensex falling over 560 points and the Nifty closing below the 24,100 mark as a sharp rise in crude oil prices, escalating geopolitical tensions in the Middle East and weak global cues triggered broad-based selling across sectors.
The BSE Sensex declined 561.46 points (0.72%) to settle at 77,054.94, while the NSE Nifty 50 dropped 158.95 points (0.66%) to close at 24,052.05. Over the past three trading sessions, the Sensex has shed 1.45%, while the Nifty has declined 1.38%.
Investor sentiment remained cautious amid concerns that higher energy prices could fuel inflation, complicating the interest-rate outlook globally. Market participants are also closely tracking the ongoing first-quarter earnings season for corporate earnings cues.
Broad-based selling
Selling pressure was visible across the broader market. The BSE MidCap Index slipped 0.54%, while the SmallCap Index lost 1.08%.
Market breadth remained negative, with 2,737 stocks declining, 1,501 advancing, and 203 remaining unchanged on the BSE.
The India VIX, the market’s volatility gauge, rose 3.53% to 13.75, reflecting heightened investor nervousness.
Top Nifty Gainers
- Biocon (+6.34%)
- Welspun Corp (+4.08%)
- PDS (+5.89%)
- Pharma stocks remained resilient amid defensive buying.
- Metal shares also outperformed the broader market.
Top Nifty Losers
- HCL Technologies (-4.63%)
- State Bank of India (-2.34%)
- Larsen & Toubro (-2.11%)
- HDFC Bank (-1.09%)
- IT, banking and auto stocks were among the biggest drags on the indices.
Inflation concerns return
Fresh macroeconomic data added to investor concerns.
India’s Wholesale Price Index (WPI) inflation accelerated to 9.87% in June from 9.68% in May, driven by rising prices of food articles, mineral oils, basic metals and chemicals. The June figures are based on the revised WPI series with 2022-23 as the base year.
Meanwhile, Consumer Price Index (CPI) inflation climbed to 4.38% in June from 3.93% in May, crossing the Reserve Bank of India’s medium-term target of 4% for the first time in 17 months. Food inflation stood at 5.32%, while transport inflation accelerated sharply to 4.3%.
Crude oil spikes
Brent crude futures for September delivery surged 4.19% to $86.79 per barrel, intensifying concerns over imported inflation and higher input costs for Indian companies.
The yield on India’s benchmark 10-year government bond rose to 6.804%, while MCX Gold futures gained 0.54% to ₹1,41,060 per 10 grams.
The rupee traded around 96.26 against the US dollar, compared with the previous close of 95.68, reflecting pressure from rising crude prices.
Global markets cautious
European markets traded lower as soaring oil prices revived inflation concerns and raised questions over the future path of global interest rates.
Asian markets closed mostly higher, although gains remained limited as investors weighed the impact of geopolitical developments on energy markets.
Wall Street ended lower overnight, with the S&P 500 falling 0.79%, the Nasdaq Composite declining 1.55%, and the Dow Jones Industrial Average losing 138 points, amid fears that elevated oil prices could delay monetary policy easing by the US Federal Reserve.
Stocks in focus
Biocon jumped 6.34% after reports that Viatris-owned Mylan is exiting its entire 5.6% stake through block deals worth about ₹3,481 crore, ending a 17-year partnership.
Landmark Cars hit the 20% upper circuit after reporting a 22.5% rise in first-quarter revenue on strong vehicle sales and after-sales growth.
HCL Technologies fell 4.63% despite reporting robust quarterly earnings, as investors were disappointed with the company’s unchanged FY27 revenue growth guidance.
PDS rallied 5.89% after securing a multi-year sourcing contract with the global sourcing arm of a leading French supermarket group.
Welspun Corp gained 4.08% after winning fresh export pipe orders worth about ₹1,400 crore.
Among other stocks, EMS Ltd, Khaitan Chemicals & Fertilizers and Krishana Phoschem ended lower following their quarterly updates.
IPO watch
Investor response to the SBI Funds Management IPO remained subdued, with the issue subscribed 0.66 times by late afternoon on the opening day. The public issue is priced in the ₹545-574 band and closes on July 16.
The Alphine Texworld IPO was subscribed 0.27 times on the first day of bidding, with a price band of ₹100-105 per share.
Outlook
Market experts expect volatility to remain elevated in the near term as investors monitor developments in the Middle East, movements in crude oil prices, domestic inflation trends and the ongoing first-quarter earnings season. Global macroeconomic data, particularly US inflation figures and commentary from Federal Reserve officials, will also remain key drivers for market sentiment.