Indian equity markets opened on a weak note on Wednesday morning as the Sensex declined 715.06 points or 0.92% to settle at 76,755.05, while Nifty 50 fell 191.45 points or 0.79% to end at 23,996.25. The Nifty had earlier touched an intraday low of 23,961.40, down 1.22%, while the Sensex declined as much as 828.92 points or 1% to 76,641.19 during the session. Both indices recorded their biggest single-day decline in two weeks, with the Nifty slipping below the 24,000 mark for the first time. Market breadth turned sharply negative, with 39 of the index's 50 constituents ending in the red, indicating broad-based selling pressure across the market. GIFT Nifty was trading lower at around 23,910 in early trade, indicating a muted opening for the domestic equity markets. Over the past three sessions, the Sensex and Nifty have lost 1.79% and 1.39% respectively, as reported by Business Standard.
Among the top gainers on the Nifty 50, Hindustan Unilever, NTPC, Power Grid, and Titan were among the winners, while InterGlobe Aviation, Infosys, State Bank of India, UltraTech Cement, ICICI Bank, and Axis Bank were among the major laggards from the Sensex pack. Bajaj Auto led with a surge of 5.7% to hit a 52-week high of ₹10,999 after reporting better-than-expected first-quarter earnings supported by resilient margins and a positive export outlook. Nestle India rose 4.07% to hit a 52-week high of ₹1,510, while TVS Motor Company climbed 5% after reporting its highest-ever quarterly revenue of ₹13,896 crore, up 38% from ₹10,081 crore in the corresponding quarter of the previous fiscal. MPS Limited rallied 19.99% to hit a 52-week high of ₹2,564.50 after the publishing company reported strong quarterly performance and incorporated a wholly owned subsidiary in Singapore. However, IndiGo remained the top loser on the index, falling 3.16% to ₹5,137.50, while Bandhan Bank tumbled 16% to hit an intraday low of ₹169.56 despite posting a 35% year-on-year growth in net profit after tax at ₹501.66 crore, as investors reacted to the company's conservative guidance. Auto and FMCG were the only sectors to end in positive territory, while selling was pronounced in rate-sensitive sectors with banking, realty and consumer durables leading the decline. Realty, PSU banks, IT, private banks and pharma were the top sectoral losers, while FMCG and auto were the only sectors to end with modest gains, according to The Financial Express.
Brent crude futures rose 2% to $96 per barrel in early trading after the US launched a new round of strikes on Iran and Yemen's Houthis targeting oil tankers in the Red Sea, widening the scope of a conflict that has cast a shadow on global markets. This comes after oil settled at a five-week high on Tuesday after US forces struck targets in southern and western Iran, while Iran attacked US facilities in Bahrain, Kuwait and Jordan. Nearly five months of war have depleted global stockpiles and stoked inflation worldwide, with analysts warning the closure of both the Strait of Hormuz and Bab el-Mandeb in the Red Sea would disrupt shipping routes for more than a quarter of the world's oil and gas. Rising oil prices have also renewed inflationary concerns, pushing short-term U.S. Treasury yields to 17-week highs as traders wager the Federal Reserve may need to raise interest rates sooner rather than later. In Asian markets, Asian stocks rose on Thursday after U.S. technology firms outlined significant capital spending plans that are likely to benefit chipmakers in the region, according to Business Standard. Overnight in the US, the S&P 500 ended Wednesday slightly below the flatline, dropping 0.14% to end at 7,498.96, while the Nasdaq Composite slipped 0.57% to 25,690.90, as investors looked ahead to another busy day of corporate earnings. The broad market index dropped 0.14% to end at 7,498.96, while the Nasdaq Composite slipped 0.57% to 25,690.90, with Alphabet shares sliding 3% in extended trading after the Google parent lifted its forecast for 2026 capital expenditures to as high as $205 billion, pointing to strong artificial intelligence demand.
Indian pharmaceutical stocks came under broad-based selling pressure on Wednesday after US President Donald Trump proposed steep tariffs on imported generic medicines after a transition period, reviving concerns over the earnings outlook for Indian drugmakers. Under the proposed framework, generic drugs imported into the US will continue to attract zero tariffs for the next two years. However, tariffs could rise to 100% in the third year and eventually 200% thereafter, with the administration aiming to incentivise pharmaceutical manufacturers to establish production facilities in the US. In his post on Truth Social, Trump said, "Effective August 1st, 2026, all Generic Drugs being brought into the United States will continue to have a TARIFF of ZERO PERCENT for a two year period of time, after which the TARIFF will be raised to 100% for a one year period of time, and 200% thereafter. This is done in order to RESHORE Generic Pharmaceutical Production into America, with a penalty to those Companies that decide not to build Plant and Equipment within the stated period of time given to them." The policy shift has created significant uncertainty for Indian pharma exporters, with investors reassessing the potential long-term impact on the sector's growth prospects. The Nifty Pharma index ended 1.3% lower after falling as much as 2.1% during the session, with Gland Pharma declining 4.66%, Piramal Pharma falling 3.97%, Ajanta Pharma dropping 3.4%, Lupin falling 3.33%, and Sai Life Sciences declining 3.22%, while Glenmark Pharmaceuticals fell 2.91% and Aurobindo Pharma dropped 2.78%. The proposed phased US tariffs on imported generic medicines also weighed on pharma stocks, as noted by Ajit Mishra from Religare Broking, according to The Financial Express.
On July 22, foreign institutional investors (FIIs) remained net sellers, offloading Indian equities worth ₹819.20 crore, while domestic institutional investors (DIIs) were net sellers to the tune of ₹418.26 crore in the Indian equity market, as per provisional data from Business Standard. The FIIs have sold shares worth ₹4,836.95 crore so far in July (till 22 July 2026), following their cash sales of ₹49,028.63 crore in June, ₹55,963.33 crore in May and ₹70,135.46 crore in April. Asian shares advanced as regional chipmakers gained on expectations they will benefit from billions of dollars flowing into the artificial intelligence buildout, according to Moneycontrol. US equities showed mixed performance with the Nasdaq leading Wall Street lower, falling 146.30 points or 0.57% to 25,690.90, while the Dow Jones Industrial Average fell 6.06 points to 52,218.58 and the S&P 500 lost 10.24 points to 7,498.96. The dollar largely stabilised on Thursday as renewed U.S.-Iran tensions kept investors on edge and underpinned demand for the safe-haven currency, while US Treasury yields were largely steady with the benchmark 10-year Treasury yield holding at 4.65% and the 2-year Treasury yield remaining almost unchanged at 4.29%. Asian currencies showed mixed performance with the South Korean won gaining 0.406% as the strongest performer, followed by the Taiwan dollar up 0.182%, while the Indonesian rupiah was the biggest laggard, declining 0.162%, as reported by Moneycontrol.
