BY OUR BUSINESS CORRESPONDENT
Key equity benchmarks closed lower on Monday, weighed down by sharp sell-offs in major private sector banking stocks following their respective June-quarter earnings reports. Investor sentiment was further dampened by weak global cues, escalating geopolitical tensions in the Middle East, and elevated crude oil prices. Despite the pressure on headline indices, broader markets showed resilience, with midcap and smallcap segments managing marginal gains.
Benchmark Indices and Market Breadth
The S&P BSE Sensex tumbled 442.93 points, or 0.57%, to settle at 77,708.52. Similarly, the NSE Nifty 50 declined 95.80 points, or 0.39%, ending below the crucial 24,250 mark at 24,238.50.
In contrast, the broader markets outperformed frontline indices. The BSE 150 MidCap Index advanced 0.47%, and the BSE 250 SmallCap Index added 0.21%. Market breadth remained positive, reflecting selective buying interest: out of the total shares traded on the BSE, 2,226 advanced, 2,039 declined, and 255 remained unchanged.
The NSE’s India VIX, which measures near-term market volatility expectations, cooled off by 1.29% to close at 12.98, indicating subdued panic despite the headline index correction. Sectorally, public sector undertaking (PSU) banks, pharmaceuticals, and energy counters witnessed buying interest, whereas private lenders bore the brunt of heavy liquidations.
Parliament Monsoon Session 2026 Begins on a Stormy Note
The Monsoon Session of Parliament commenced on a contentious note on Monday as opposition members staged protests over a slew of national issues. Lok Sabha Speaker Om Birla appealed to members of Parliament to maintain decorum and allow Question Hour to proceed unhindered.
However, leaders from the Congress and other INDIA bloc parties indicated they intend to aggressively corner the government on multiple fronts, including alleged irregularities surrounding Ram Mandir donations, recurring examination paper leaks, and the nation’s ethanol-blending policy. The ongoing session, slated to run through 13 August 2026, is anticipated to feature heated legislative and political showdowns.
Macroeconomic Indicators: Forex Reserves Expand
Data released by the Reserve Bank of India (RBI) revealed that India’s foreign exchange reserves rose by $964 million, bringing the total tally to $675.157 billion for the week ended 10 July 2026.
- Foreign Currency Assets (FCAs): The largest component of the reserves increased by $930 million to $546.508 billion.
- Gold Reserves: Witnessed an uptick of $24 million, reaching $105.223 billion.
- Special Drawing Rights (SDRs): Edged higher by $3 million to $18.626 billion.
- IMF Reserve Position: Rose by $7 million to $4.793 billion during the reporting week.
Key Financial and Commodity Metrics to Track
- Bond Yields: India’s 10-year benchmark federal paper yield inched up by 0.03% to 6.782, compared with its previous close of 6.780. In the United States, the 10-year Treasury yield jumped 0.33% to 4.556, while the 30-year yield climbed back above the psychologically important 5% mark.
- Foreign Exchange: The partially convertible Indian rupee depreciated against the US dollar, hovering around 96.4500 compared to the previous close of 96.3050. Meanwhile, the US Dollar Index (DXY) rose 0.05% to 100.81.
- Commodities: MCX Gold futures for the 5 August 2026 settlement advanced 0.66% to Rs 141,793. Brent crude futures for September 2026 delivery slipped 14 cents, or 0.16%, to settle at $87.96 a barrel amid persistent Middle East supply concerns.
Global Markets and Geopolitical Overhang
European markets traded mostly higher on Monday despite ongoing geopolitical risks. Asian shares ended mixed as escalating conflicts in the Persian Gulf drove crude prices higher, reigniting global inflation anxieties.
The US military extended its strikes against Iran for a ninth consecutive day, eliciting retaliatory regional attacks. Commercial shipping through the Strait of Hormuz remains restricted, highlighted by a cargo vessel catching fire over the weekend.
Surging crude prices have complicated the global inflation outlook, offsetting relief from softer US consumer price data released the prior week. Financial markets are currently pricing in roughly 29 basis points of Federal Reserve rate hikes by year-end, with futures pointing to a 60% probability of a policy rate increase as early as September.
Wall Street closed lower on Friday, extending its weekly pullback. The S&P 500 dropped 1.01% to 7,457.69, the Nasdaq Composite shed 1.4% to 25,520.24, and the Dow Jones Industrial Average fell 406.55 points, or 0.77%, to 52,146.42, pressured by a sharp 7% tumble in Netflix shares following its cautious growth outlook and ongoing weakness in semiconductor counters. US Dow Jones futures pointed toward a positive start for Wall Street later in the day, up roughly 126 points.
Corporate Earnings and Spotlight Stocks
Banking Sector Dynamics
- HDFC Bank: Shares dropped 5.08% after reporting a standalone net profit of Rs 19,059.72 crore for Q1 FY27, up 4.98% year-on-year from Rs 18,155.21 crore. Total income contracted 7.08% YoY to Rs 92,184.38 crore.
- Axis Bank: Fell 5.37% despite reporting a 22.52% jump in standalone net profit to Rs 7,113.92 crore. Total income grew 6.26% YoY to Rs 40,721.05 crore.
- Kotak Mahindra Bank: Declined 1.96% despite a 25.63% YoY increase in standalone net profit to Rs 4,122.96 crore and a 5.31% rise in total income.
- ICICI Bank: Advanced 1.16%, reporting a 15.95% rise in standalone net profit to Rs 14,804.50 crore on a 5.43% increase in total income.
- Yes Bank: Slipped 2.80% despite a 33.7% increase in net profit to Rs 1,071 crore.
- IDBI Bank: Declined 2.10%, reporting a 5.37% increase in net profit to Rs 2,115.18 crore, though operating profit slipped 7.91% YoY.
- RBL Bank: Gained 0.19% on the back of a 26.64% surge in net profit to Rs 253.70 crore.
- Punjab National Bank (PNB): Surged 5.61% after posting a massive 213.63% YoY spike in standalone net profit to Rs 5,253.29 crore.
Non-Banking Standouts
- Tips Music: Rallied 6.65% ahead of a scheduled board meeting on 22 July 2026 to review Q1 financial results and consider an equity share buyback proposal.
- UltraTech Cement: Rose 1.48% after consolidated net profit grew 16.77% to Rs 2,599.28 crore, supported by a 15.85% jump in revenue from operations to Rs 24,648 crore.
- Mahindra Logistics: Advanced 2.49%, swinging back to a consolidated net profit of Rs 25.39 crore for Q1 FY27 from a net loss in the corresponding quarter last year.
- Tatva Chintan Pharma Chem: Hit the 20% upper circuit following a stellar performance, with consolidated net profit soaring 140.3% YoY to Rs 15.98 crore.
- Bhansali Engineering Polymers: Climbed 12.07% after reporting a 42.95% YoY growth in net profit to Rs 65.60 crore, aided by better realizations and operational efficiencies.
Initial Public Offering (IPO) Corner
The initial public offering of Caliber Mining and Logistics witnessed strong investor interest, receiving bids for 18,04,09,005 shares against the 78,35,821 shares on offer as of Monday afternoon. The issue, which opened on 17 July and concludes on 21 July 2026 with a price band set between Rs 402 and Rs 424 per share, was subscribed 23.02 times overall.
Disclaimer: This report is based on publicly available market data, corporate earnings announcements and official economic releases available as of July 20, 2026. It is intended solely for informational and journalistic purposes and should not be construed as investment, financial or trading advice.