The Sensex dropped around 712 points to 76,857 while Nifty 50 fell 207 points to 24,000 during Monday's trading session, according to The Economic Times. The sharp decline wiped off more than ₹2 lakh crore in investor wealth, pulling down the total market capitalisation of all companies listed on BSE to ₹479 lakh crore. The benchmark indices crashed almost 1% each in morning trade, triggered by fresh US-Iran conflict developments that have significantly impacted market sentiment across Indian equity markets. As per Business Standard, the Sensex was down 447 points, or 0.59% at 77,119, and the Nifty was down 132 points, or 0.57% at 24,071 as of 9:40 AM, with the Sensex making a low of 76,857.43 during early morning deals. In the latest pre-open session at around 9:03 AM, the Sensex stood at 77,354.07, down 262.33 points or 0.34%, while the Nifty was at 24,075.95, lower by 135.05 points or 0.56%. The Indian benchmark indices continued trading in negative territory during the afternoon session on Tuesday, July 14, with the SENSEX dropping as much as 0.8% to touch an intraday low of 77,001.58 and NIFTY50 reaching the session's low of 24,038.10.
Brent crude extended its rally on Tuesday, climbing another 4.5% to around $87 a barrel after surging nearly 10% in the previous session, as reported by The Economic Times. The latest gains came after the United States reinstated its naval blockade of Iran, while both nations intensified military activity around the Strait of Hormuz, a vital chokepoint for global oil shipments. The developments have heightened concerns over the security of one of the world's most important energy trade routes. Brent crude extended its rally on Tuesday, climbing another 4.5% to around $87 a barrel after surging nearly 10% in the previous session, while US West Texas Intermediate crude rose $2.21, or 3.09% to $73.62 as reported by Business Standard. The surge in oil prices, driven by fresh US-Iran conflict developments, has created uncertainty in global energy markets and directly affects India's import-dependent economy. July crude oil futures contract was quoted at $84.11, up 0.97%, as reported by latest market data. Higher oil prices typically translate to increased input costs for Indian companies, particularly those in the manufacturing and transportation sectors. The escalation follows US Central Command (CENTCOM) conducting a third consecutive night of strikes against Iran, while Iran's semi-official YJC news agency reported seven explosions in the port city of Bandar Abbas and two more on Kish Island early on Tuesday, further escalating geopolitical tensions.
India's retail inflation breached the Reserve Bank of India's 4% target for the first time in 17 months, rising to 4.38% in June from a year earlier, according to government data released on Monday, as reported by The Economic Times. Inflation was driven by higher food and fuel prices, reflecting supply disruptions linked to the Iran conflict and delays in the arrival of the monsoon. Investors were further unsettled after U.S. Federal Reserve Governor Christopher Waller said on Monday that the central bank may need to raise interest rates "in the near term" if upcoming inflation data continue to remain well above its 2% target. Speaking to the New York Association for Business Economics, Waller said monetary policy was at a "crossroads" and stressed that the Fed should not be "lackadaisical" if inflation surprises on the upside, reinforcing concerns that borrowing costs could stay higher for longer. This week, as many as 143 companies are likely to report their first-quarter numbers, including the heavyweights such as Reliance Industries, HDFC Bank, ICICI Bank, Axis Bank, Wipro, Infosys, and Kotak Mahindra Bank.
HCL Tech, one of India's leading IT services companies, delivered a weaker-than-expected set of first-quarter numbers, raising concerns about the outlook for the country's IT sector, as reported by The Economic Times. The disappointing earnings, coupled with a muted guidance, reignited fears over slowing discretionary spending by global clients and AI-led disruption worries, prompting investors to trim exposure to the sector. HCL Tech shares tumbled over 4% in today's session, with the company being among the top laggards alongside IndiGo, Bajaj Finserv, Mahindra & Mahindra and Kotak Mahindra Bank, declining by as much as 4.3%. As per The Hindu BusinessLine, Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted that "FIIs are reducing concentration risk in chip stocks and moving money to stabler markets where there is no concentration risk and long-term growth prospects are bright." Among the sectoral indices, Nifty Auto, PSU Bank and IT emerged as the biggest losers, falling as much as 1.8% in afternoon trade, while Nifty IT bucked the market trend to gain 0.50%, as reported by Business Standard. The overall market breadth was bearish with the advance/decline ratio standing at 1,352/1,539, showing a negative bias.
The Indian rupee slipped past the key psychological level of 96 against the U.S. dollar on Tuesday, pressured by a sharp surge in crude oil prices and escalating geopolitical tensions in the Middle East, according to The Economic Times. The currency fell 0.56% to 96.16 per dollar, its weakest level since late May, after Brent crude climbed to a one-month high. The latest bout of weakness followed the U.S. decision to reimpose its naval blockade of Iran, while military activity between the two countries intensified around the Strait of Hormuz, fuelling concerns over oil supplies and increasing pressure on oil-importing economies such as India. Global sentiment remained fragile after U.S. markets ended lower overnight and stock futures traded mixed on Tuesday, as investors grappled with escalating tensions in the Middle East while awaiting key corporate earnings and fresh inflation data. Early Tuesday, U.S. stock futures were mixed with Dow futures falling 141 points, or 0.3%; S&P 500 futures were little changed, while Nasdaq-100 futures rose 0.4%, reflecting cautious investor positioning ahead of corporate earnings and the latest U.S. inflation data. Asian markets rebounded on Tuesday after two straight sessions of sharp losses, as investors stepped in to buy stocks at lower levels following the recent sell-off.
India VIX soared more than 8% to 13.24 during the morning trading session, indicating heightened market volatility, according to The Economic Times. However, India VIX fell 8.31% to 12.25 as of latest reports, indicating reduced volatility concerns. As per Business Standard, Sachin Gupta, VP – Research at Choice Broking, noted that "the Nifty Put-Call Ratio had improved to 1.25 from 0.94, signalling aggressive put writing and strengthening bullish sentiment among derivatives traders." The Nifty Put-Call Ratio (PCR) improved sharply to 1.25 from 0.94, indicating that market participants continue to build support positions at lower levels. Gaurav Udani, Founder of ThinCredBlu Securities, identified 23,900–24,000 as immediate support for Nifty, with 24,200–24,300 as the key resistance band. Shrikant Chouhan, Head of Equity Research at Kotak Securities, pointed out that the benchmark indices had defended the 50-day SMA at 23,800 on the Nifty and 76,100 on the Sensex last week, reaffirming that zone as critical support.
