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The Indian stock market recorded sharp losses on Wednesday, with Sensex and Nifty falling around 1% to extend their losing streak as escalating Iran-US war, Trump’s renewed tariff threats and other factors spooked investors.
Sensex tumbled over 715 points to close at 76,755, while Nifty 50 declined over 191 points to 23,996. The selloff wiped off nearly Rs 4.25 lakh crore from the total market capitalisation of all companies listed on BSE, dragging it down to Rs 480 lakh crore.
After showing some resilience against the selloff in the earlier sessions, broader markets also slipped into the deep red on Wednesday. Nifty Smallcap 100 and Nifty Midcap 100 indices dropped up to 1.5%.
Here's how analysts read the market pulse
Indian equities ended lower as the ongoing US-Iran standoff and Houthi-led disruptions to key global shipping routes heightened concerns over potential oil supply disruptions, driving crude prices higher and weakening the rupee, said Vinod Nair, Head of Research at Geojit Investments.
He added that the risk-off sentiment due to renewed concerns over domestic inflation overshadowed better-than-expected business updates and encouraging Q1 earnings results. Rate-sensitive sectors such as realty, banking, and consumer durables led the decline, while pharmaceutical stocks came under pressure amid renewed uncertainty over proposed US tariff measures on pharmaceutical exports, he noted.
“Despite the cautious backdrop, FMCG and auto stocks emerged as relative outperformers, supported by strong quarterly earnings from sector leaders, highlighting investors' preference for companies delivering resilient earnings growth amid broader market volatility,” according to the analyst.
US stocks
U.S. stock indexes were mixed on Wednesday, as weakness in chip shares soured sentiment ahead of the first batch of Big Tech earnings that could decide the durability of Wall Street's AI-driven rally.
After months of gains that pulled the major indexes up from their March lows, momentum has faltered as volatility in heavyweight semiconductor shares has dented risk appetite.
Investors are now looking to second-quarter results from Alphabet and Tesla, the first of the so-called "Magnificent Seven" megacap companies to report after the bell for fresh evidence that these companies' multibillion-dollar investments in AI are paying off.
Oil prices surpassed $95 per barrel on Wednesday as tensions intensified in the Middle East, pressuring U.S. equities ahead of key Big Tech earnings, while the dollar dipped against other major currencies.
European markets
European shares edged lower on Wednesday, dragged down by technology stocks as caution prevailed ahead of earnings from U.S. big techs, while investors assessed escalating Middle East tensions.
The pan-European STOXX 600 index slipped 0.3% to 641.12 points.
Tech view
Rising crude prices have again become a pain point for Indian equities, said Rupak De, Senior Technical Analyst at LKP Securities. As crude sustains above the 50EMA, Nifty is set to break below the 50EMA, he said, adding that it looks like the Nifty and crude oil are again moving inversely to each other.
“The days of consolidation seem to have been broken on the downside on the daily chart of the Nifty. The RSI is in a bearish crossover, pointing towards weak momentum in the near to short term. On the lower end, the fall might extend towards 23,700 - 23,600 if the Nifty falls below 23,900. On the higher end, near-term resistance is seen at 24,100,” according to the analyst.
Most active stocks in terms of turnover
Data Patterns (Rs 3,233 crore), Bandhan Bank (Rs 2,801 crore), M&M Financial (Rs 2,046 crore), Kalyan Jewellers (Rs 1,953 crore), Eternal (Rs 1,878 crore), HDFC Bank (Rs 1,762 crore) and Himadri Speciality (Rs 1,691 crore) were among the most active stocks on NSE in value terms. Higher activity in a counter in value terms can help identify the counters with the highest trading turnovers in the day.
Most active stocks in volume terms
Vodafone Idea (Traded shares: 35.69 crore), Yes Bank (Traded shares: 16.74 crore), Bandhan Bank (Traded shares: 15.69 crore), Eternal (Traded shares: 6.59 crore), Trident (Traded shares: 5.96 crore), Ola Electric (Traded shares: 5.6 crore) and HFCL (Traded shares: 5.59 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Data Patterns, M&M Financial, Bajaj Auto, Crisil, Chennai Petro, R R Kabel and Kalyan Jewellers were among the stocks that witnessed strong buying interest from market participants.
52-week high
Among the ones which hit their 52-week highs on NSE included Bajaj Auto, Chennai Petro, Nestle India, Exide Industries, IndusInd Bank, Titan Company and Karur Vysya Bank.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Bandhan Bank, Oracle, PG Electroplast, Ola Electric, Saregama India, Aavas Financiers and IndiaMART.
52-week low
Among the ones which hit their 52-week lows on NSE included IndiaMART, Whirlpool India and Tata Elxsi.
Sentiment meter favours bears
Out of the 3,409 stocks that traded on the NSE on July 22, Wednesday, 1,068 stocks witnessed advances, 2,232 saw declines while 109 stocks remained unchanged.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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