Sensex sheds 364 points, Nifty slips below 23,900; broader markets under pressure as crude nears $100 a barrel
By Our Business Correspondent
Indian equity markets remained under sustained pressure on Thursday, extending losses for the fourth consecutive trading session as investors turned increasingly cautious amid surging global crude oil prices and intensifying geopolitical tensions in the Middle East. The benchmark indices ended lower with widespread selling across sectors, while weakness in broader markets underscored growing risk aversion among market participants.
The BSE Sensex declined 363.66 points, or 0.47 per cent, to close at 76,391.39, while the NSE Nifty50 fell 126.65 points, or 0.53 per cent, to settle at 23,896.60, slipping below the psychologically significant 23,900 mark.
The latest decline marks the fourth straight session of losses for domestic equities. During this period, the Sensex has corrected around 2.25 per cent, while the Nifty has fallen 1.90 per cent, reflecting persistent concerns over global macroeconomic uncertainties and elevated energy prices.
Oil Shock Returns to Centre Stage
The biggest trigger for Thursday’s sell-off was the sharp rise in crude oil prices after fresh military escalation in the Middle East.
International benchmark Brent crude surged more than 4 per cent to $98.08 a barrel, moving dangerously close to the $100 mark. The spike followed reports of a fresh wave of US military strikes targeting Iran and renewed attacks by Yemen’s Houthi rebels on commercial oil tankers in the Red Sea.
Energy markets have become increasingly volatile as traders fear that the conflict could widen and threaten key global shipping routes, particularly the Strait of Hormuz and Bab el-Mandeb, through which a substantial share of the world’s oil and liquefied natural gas supplies pass.
Analysts believe any disruption to these strategic maritime corridors could significantly tighten global energy supplies, increase transportation costs and reignite inflationary pressures across major economies.
For India, which imports nearly 85 per cent of its crude oil requirements, sustained higher crude prices pose multiple challenges. Besides widening the current account deficit, elevated oil prices could put pressure on the rupee, increase imported inflation and reduce corporate profitability, particularly for sectors heavily dependent on fuel and transportation costs.
Broad-Based Selling Across Sectors
Selling pressure remained widespread throughout the trading session.
Among sectoral indices, real estate, oil & gas, infrastructure and PSU banking stocks witnessed the sharpest declines as investors reduced exposure to economically sensitive sectors.
Auto and media stocks emerged as the only notable gainers, providing limited support to an otherwise weak market.
Market breadth also reflected the negative sentiment.
On the Bombay Stock Exchange, 2,585 stocks declined, compared with 1,637 advancing shares, while 181 stocks remained unchanged, indicating that selling pressure was broad-based rather than concentrated in a few heavyweight stocks.
Broader markets underperformed benchmark indices.
The BSE MidCap Index fell 1.01 per cent, while the BSE SmallCap Index declined 1.20 per cent, suggesting that investors were shifting away from higher-risk assets amid rising global uncertainty.
Heavyweights Drag Benchmarks Lower
Large-cap stocks bore the brunt of selling.
Among the biggest contributors to Thursday’s decline were:
- Reliance Industries, which fell 1.24 per cent
- HDFC Bank, down 0.97 per cent
- Bharti Airtel, which slipped 0.82 per cent
These heavyweight stocks alone accounted for a significant portion of the benchmark losses.
Meanwhile, market volatility showed signs of increasing.
The India VIX, often referred to as the market’s “fear gauge”, rose 1.37 per cent to 13.48, indicating higher expectations of near-term market fluctuations.
Technical Outlook Turns Weak
Technical analysts believe the market has entered a vulnerable phase following four consecutive sessions of declines.
According to market experts, the Nifty has slipped below important short-term moving averages, weakening the technical structure.
Immediate support is now seen in the 23,750–23,780 zone, while resistance is likely near the 24,000 mark. A decisive move above 24,000 could improve sentiment, but failure to hold current support levels may invite further downside.
Investors are also watching whether foreign institutional investors continue selling amid rising global yields and geopolitical uncertainty.
Currency and Bond Markets Reflect Caution
The cautious mood extended beyond equities.
The Indian rupee weakened marginally against the US dollar, with the partially convertible rupee trading around 96.56 per dollar, compared with the previous close of 96.53.
Government bond yields also moved higher.
The yield on India’s benchmark 10-year government security rose to 6.83 per cent, up from 6.801 per cent previously, indicating expectations of persistent inflationary pressures.
In commodity markets, MCX Gold futures for August delivery fell about 1 per cent to ₹1,44,222 per 10 grams, as investors booked profits despite ongoing geopolitical uncertainty.
The US Dollar Index (DXY) edged higher to 101.16, while the yield on the US 10-year Treasury climbed to 4.679 per cent, reflecting expectations that inflationary pressures may keep global interest rates elevated for longer.
Global Markets Mixed
Global markets presented a mixed picture.
Most Asian markets finished higher, supported by optimism surrounding increased capital expenditure plans announced by leading US technology companies, which boosted sentiment for semiconductor manufacturers.
However, gains remained limited as rising oil prices continued to cloud the global economic outlook.
European markets traded lower, led by weakness in technology stocks following corporate earnings announcements. Investors also remained cautious ahead of the European Central Bank’s policy decision while monitoring developments in the Middle East.
US stock futures also pointed to a weak opening, with Dow Jones futures falling nearly 192 points during Asian trading hours.
Overnight, Wall Street ended mostly lower as higher crude prices offset optimism generated by corporate earnings.
The S&P 500 slipped 0.14 per cent, while the Nasdaq Composite declined 0.57 per cent. The Dow Jones Industrial Average ended almost unchanged.
Technology giant Alphabet remained in focus after announcing plans to raise its 2026 capital expenditure to as much as $205 billion, highlighting continued aggressive investment in artificial intelligence infrastructure. Investors, however, expressed caution over the scale of spending despite expectations of long-term growth.
Earnings Drive Stock-Specific Action
Corporate earnings continued to generate significant stock-specific movements.
Among notable gainers, NTPC Green Energy jumped 6.45 per cent after reporting strong year-on-year and sequential growth in quarterly profit and revenue.
Tanla Platforms climbed 9.69 per cent following robust earnings supported by double-digit growth in revenue and profitability.
Gandhar Oil Refinery (India) emerged as one of the day’s biggest gainers, soaring nearly 20 per cent after reporting an exceptional surge in quarterly profit alongside strong revenue growth.
HEG advanced nearly 4 per cent after posting healthy earnings growth.
PVR INOX gained 1.55 per cent after returning to profitability on the back of strong box office collections and improved theatre occupancy.
Consumer technology company Eternal also rose modestly after reporting a sharp increase in quarterly profit and robust revenue growth.
On the losing side, pharmaceutical stocks remained under pressure.
Cipla declined 1.42 per cent after reporting a sharp fall in quarterly profit despite modest revenue growth.
Dr. Reddy’s Laboratories also slipped after reporting a substantial decline in earnings.
State-owned oil major HPCL fell 2.30 per cent after posting a steep quarterly loss, reflecting pressure on refining margins and inventory-related factors.
Chennai Petroleum Corporation also weakened after reporting lower profits despite higher revenues.
Nippon Life India Asset Management declined over 3.5 per cent even after reporting healthy growth in quarterly profit, suggesting profit booking following recent gains.
Renewable energy company Waaree Renewable Technologies dropped over 7 per cent after posting lower quarterly earnings.
IPO Market Sees Mixed Response
Primary market activity remained active, although investor response varied across issues.
INDO-MIM received subscriptions slightly above its offer size, while Xtranet Technologies also managed to achieve full subscription by the close of bidding.
However, Lohia Corp witnessed a relatively subdued response, with subscriptions remaining below the issue size.
Outlook
Market participants are expected to remain focused on developments in the Middle East, movements in crude oil prices, foreign institutional investor flows, upcoming corporate earnings and global central bank signals.
Analysts believe volatility may remain elevated in the near term as geopolitical developments continue to influence commodity prices and inflation expectations. A sustained rise in crude oil above current levels could increase pressure on emerging markets, including India, especially if accompanied by continued foreign fund outflows and a weakening rupee.
Disclaimer: This report is based on market data, company disclosures and publicly available information as of the close of trading on July 23, 2026. Investors should consult qualified financial advisers before making any investment decisions.