Stock market today: The Indian stock market ended lower on Tuesday, 21 July, with the benchmarks, the Sensex and the Nifty 50, extending losses for the second consecutive session as escalating tensions in the Middle East and rising crude oil prices continue to weigh on market sentiment.
The Sensex ended 238 points, or 0.31%, lower at 77,470.11, while the Nifty 50 settled at 24,187.70, falling 51 points, or 0.21%. The mid and small-cap segments continued their outperformance on expectations of healthy Q1 earnings. The Nifty Midcap 100 index rose by 0.30%, while the Smallcap 100 index climbed 0.53%.
What drove the benchmarks down today?
Tensions between the US and Iran, and the rise in crude oil prices resulting from them, are the main reasons behind the decline in the benchmarks.
Iran-backed Houthis, as per reports, have said they would impose a naval blockade on Saudi Arabia, signalling the conflict in the region is further intensifying.
Houthis’ warnings have raised the risk of global energy supply disruption.
Crude oil prices have risen again after easing slightly in early trade. The Brent crude September contract traded near $90 per barrel when the Sensex closed.
Elevated oil prices have revived concerns about inflation and fuelled expectations of US Federal Reserve interest rate hikes.
“At present, the broader market is trading in a mixed range, reflecting large caps’ underperformance driven by moderating inflows amid rising geopolitical risks and higher crude oil prices,” Vinod Nair, Head of Research, Geojit Investments, noted.
Nair pointed out that midcaps are performing well in anticipation of strong corporate earnings, supported by demand-led business updates
“While this segment’s elevated valuations compared to large caps warrant caution, underlying business conditions are expected to remain healthy at least through the first half of FY27. However, sustaining this momentum will require the ongoing spike in input costs to normalise as demand growth may tend to become flattish in the second half of FY27,” said Nair.
Selling by foreign portfolio investors (FPIs) is also a key factor behind the decline in the headline indices. After buying Indian stocks in the cash segment sporadically in early July, FPIs have resumed their selling spree amid a jump in crude oil prices and increased macroeconomic risk.
Top Nifty gainers and losers today
Despite the decline in the benchmarks, as many as 33 stocks ended higher in the Nifty 50 index.
Shriram Finance, Bajaj Finserv, and Eicher Motors ended as the top gainers in the index, while HDFC Bank, Infosys, and State Bank of India (SBI) ended as the top laggards.
Sectoral indices today
Among the sectoral indices, Nifty PSU Bank ended as the top loser, falling 0.88%. Nifty IT and Oil and Gas also suffered significant losses of 0.61% and 0.50%, respectively.
Nifty Bank declined 0.19%, and the Financial Services index ended with a loss of 0.16%.
On the other hand, Nifty Realty (up 1.07%), Auto (up 0.93%), and Metal (up 0.63%) ended with healthy gains.
Stocks at 52-week high and low
IndusInd Bank, Federal Bank, Sun Pharma, and Titan Company were among the 131 stocks that hit their 52-week highs in intraday trade on the BSE. On the other hand, 90 stocks, including Tata Elxsi, JSW Holdings, and Gujarat Energy, hit their 52-week lows on the BSE during the session.
Nifty’s technical outlook
As per Sudeep Shah, the head of technical and derivatives research at SBI Securities, the 24,270-24,300 zone remains the immediate hurdle for Nifty, and a sustained move above this resistance band could trigger an extension of the ongoing pullback towards 24,450 in the short term. On the downside, Shah believes the 20-day EMA region of 24,100-24,050 may provide immediate support.
Vipin Kumar, AVP-Research at Globe Capital Market, underscored that the Nifty has been in a narrow consolidation range of 24,530–23,800 so far in July. Within this consolidation range, the index has been hovering in the confluence of its 50-day EMA (24,000 spot) and 200-day EMA (24,430 spot).
Kumar believes a break above 24,430 spot could lead it toward the upper band of the July consolidation range (24,530–24,600 spot zone); conversely, a fall below 24,000 spot could drag it back to 23,800 spot levels. A decisive break is needed for a sustainable move beyond the 23,800–24,600 spot zone.
Read all market-related news here
Read more stories by Nishant Kumar
Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
