Stock market today: Stock market benchmarks, the Sensex and the Nifty 50, snapped their four-day winning streak on Tuesday, 7 July, due to profit booking as fresh strikes between the US and Iran drove up crude oil prices, weighing on sentiment.
The Sensex dropped 104 points, or 0.13%, to end at 78,180.72, while the Nifty 50 shed 32 points, or 0.13%, to finish at 24,398.70.
Selling was seen across segments, with the Nifty Midcap 100 and Smallcap 100 indices also ending lower, down 0.30% and 0.55%, respectively.
The overall market capitalisation of BSE-listed firms dropped to below ₹480 lakh crore on Tuesday from ₹482.3 lakh crore in the previous session, making investors poorer by more than ₹2 lakh crore in a single session.
What drove the market down?
The domestic market ended lower amid profit booking, as fresh tensions between the US and Iran drove up oil prices, denting investor risk appetite.
Axios reported that Iran fired two missiles at commercial ships transiting the Strait of Hormuz on Monday night. Axios report added that Washington is likely to retaliate with strikes against Iranian targets.
US President Donald Trump on Monday (local time) said Washington would either reach a deal with Tehran or “finish the job”.
Crude oil benchmark Brent crude rose over 1% to trade near $73 per barrel around 3:30 pm IST after reports of an Iranian attack on commercial ships in the Strait of Hormuz.
“The market initially drew support from encouraging quarterly business updates, continued foreign institutional buying, easing crude oil prices near the $72 per barrel mark, and steady progress in the monsoon. The rebound in IT stocks ahead of the earnings season further supported sentiment. However, mixed global cues and stock-specific volatility capped the upside and prompted participants to book profits after the recent rally,” said Ajit Mishra, SVP- Research, Religare Broking.
Meanwhile, the Indian rupee jumped 49 paise to close at 94.94 per dollar.
Top gainers and losers in the Nifty 50 index
As many as 31 stocks ended lower in the Nifty 50 index. Shares of Trent lost 12%, ending as the top loser in the index. The stock declined as its Q1FY27 business updates failed to meet expectations.
Adani Enterprises, BEL, and Adani Ports also ended among the top losers in the index.
On the other hand, IT stocks, such as HCL Tech, Tech Mahindra, and Infosys, ended as the top gainers in the index.
Sectoral indices today
Barring Nifty IT (up 2.43%), Consumer Durables (up 0.89%), and FMCG (up 0.06%), all sectoral indices ended lower.
Nifty Realty (down 1.58%), Metal (down 1.10%), and Pharma (down 0.73%) indices lost significantly. Nifty Bank declined 0.16%.
Nifty’s tech view
According to Mishra, the Nifty may witness a phase of consolidation following its recent rebound, which would be healthy as long as it holds the 24,000–24,200 support zone.
On the upside, 24,600 may act as the immediate hurdle, and a decisive breakout above this mark could pave the way for a gradual recovery towards 25,000, said Mishra.
Shrikant Chouhan, the head of equity research at Kotak Securities, said 24,300 will act as a crucial support zone. Above this, the market could retest 24,500–24,550. On the flip side, if the market falls below 24,300, it could witness a quick intraday dip towards 24,200–24,100, said Chouhan.
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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.
