Indian benchmark indices opened lower on Monday, 20 July, as weakness in HDFC Bank offset gains in select heavyweight stocks, while rising crude oil prices amid escalating tensions in the Middle East kept investors on edge.
The BSE Sensex declined 0.72% to 77,587.23, while the Nifty 50 slipped 0.60% to 24,185.80 in early trade.
HDFC Bank dropped nearly 5% after reporting its June-quarter results, as investors reacted to a sharper-than-expected sequential decline in net interest margins despite a 5% year-on-year increase in quarterly profit.
The weakness in the country’s largest private lender overshadowed gains in Reliance Industries and ICICI Bank, both of which advanced around 1% after announcing their quarterly earnings.
Market breadth remained subdued, with seven of the 16 sectoral indices trading in the red. The broader market also came under pressure, with the Nifty Midcap and Smallcap indices declining around 0.3% each.
Investor sentiment was further weighed down by surging oil prices after the United States carried out a ninth consecutive day of strikes on Iran, pushing Brent crude above $90 a barrel and raising concerns over inflation and India’s import bill.
Market Outlook by Dharmesh Shah, Vice President, ICICI Securities
Equity benchmark extended breather as lingering geopolitical tension weighed on global sentiment. Nifty 50 navigated range bound week and settled on a positive note at 24334, up 0.5%. After hitting All-Time High Midcap index seen minor profit booking, down 1%. Meanwhile, beaten down IT, Consumer discretionary stocks extended gains along with private banks while metal, realty underperformed.
Following are the key monitorable which would provide cushion to the ongoing up move:
- After two months hiatus, the large cap stocks are showing early signs of revival. Over the weekend, key index heavyweights (representing 33% of Nifty 50 weight) are likely to come out with Q1 earnings. Any positive triggers from earnings would fuel the next leg of up move.
- Bank Nifty is resuming uptrend after forming a higher base above its April swing high of 57,500 that bodes well for extension of up move towards 60,000 levels, being former gap-area created on 2 nd March 2026.
- The AI/Semiconductor induced rally in North Asian markets (Kospi, Nikkei, Taiwan) is now showing sign of exhaustion, resulting into extended profit booking. Conversely, this rotation could benefit growth-oriented economies like India.
- During the Russia-Ukraine war (CY22-23) Brent crude oil corrected ~50% and subsequently staged a 34% pullback before entering in a consolidation phase. In the current scenario, we expect similar stabilization process to pan out as after May-June correction (40%), brent crude has already seen ~25% rally from recent low of $70. Stabilization of crude from hereon would eventually provide much need cushion to equities.
Stock To Buy This Week – Dharmesh Shah
Dharmesh Shah of ICICI Securities recommends buying Piramal Pharma Ltd.
Buy Piramal Pharma in the range of ₹174-179. He has Piramal Pharma share price target of ₹190 with a stop loss of ₹169.
Disclaimer: The Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 17/07/2026 or have no other financial interest and do not have any material conflict of interest.
The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
