Indian equity markets extended their decline on July 23, 2026, with the S&P BSE Sensex closing at 76,391.39, down 363.66 points (0.47%) and the Nifty 50 settling at 23,869.60, declining 126.65 points (0.53%). According to latest reports, the Nifty Bank index fell 534.80 points (0.94%) to 56,592.00, reflecting continued pressure in the banking sector. Market breadth remained negative with 1,806 shares rising, 2,138 shares falling, and 217 shares unchanged on the BSE. The India VIX rose above 13.5, signalling higher market volatility and encouraging investors to reduce exposure to riskier assets.
Foreign Institutional Investors (FIIs) continued their selling spree with net outflows of ₹819.20 crore in the previous session, adding to persistent foreign selling that has weighed heavily on market sentiment. As reported by IIFL Capital Services, the Nifty 28 July 2026 futures were trading at 23,930.60 at a premium of 45.15 points compared to the spot index, while the Nifty option chain showed maximum call open interest of 154.4 lakh contracts at the 24,000 strike price and maximum put open interest of 115.5 lakh contracts at the 24,000 strike price. The NSE's India VIX, a gauge of market volatility expectations, lost 1.41% to 13.11 during the latest trading session, indicating some moderation in uncertainty levels.
Sectoral performance remained largely negative on July 23, 2026, as escalating US-Iran geopolitical tensions, rising Brent crude oil prices, continued FII outflows, and weak global cues kept investors on the sidelines. Chemical (-1.87%) and Realty (-1.81%) emerged as the worst-performing sectors amid concerns over higher raw material costs and reduced risk appetite. Oil & Gas (-1.02%) and Energy (-0.99%) witnessed selling despite higher crude prices, as investors focused on the inflationary impact and rising input costs. PSU Banks (-1.00%), Private Banks (-0.77%), and Financial Services (-0.75%) declined due to continued FII selling and profit booking in heavyweight banking stocks. However, Nifty Auto (+0.70%) was the only sector to close in positive territory, supported by optimism surrounding strong Q1 earnings and healthy demand outlook from leading automobile manufacturers. Infrastructure, Cement, and Metal also ended lower as broader market weakness and concerns over economic growth weighed on sentiment.
Among individual stocks, Bajaj Auto Limited closed at 11,279.00, up by 2.55%, leading the auto sector gains. Mahindra & Mahindra Limited closed at 3,230.00, up by 1.72%, while Tata Consultancy Services Limited closed at 2,245.00, up by 1.66%. Tata Consumer Products Limited closed at 1,110.10, up by 1.39%. On the downside, Adani Enterprises Limited closed at 3,014.00, down by 4.25%, dragging the broader market lower. Nestlé India Limited closed at 1,442.20, down by 3.44%, and Shriram Finance Limited closed at 1,026.40, down by 3.06%. Adani Ports and Special Economic Zone Limited closed at 1,781.00, down by 2.11%, while Grasim Industries Limited closed at 3,101.00, down by 2.06%.
Indian benchmark indices extended their losing streak amid escalating US-Iran geopolitical tensions, with the US carrying out its 12th consecutive night of strikes on Iran, while Iran and the Iran-backed Houthis intensified threats to disrupt shipping through the Strait of Hormuz and the Red Sea. The rising geopolitical tensions increased fears of global energy supply disruptions, prompting a risk-off sentiment across equity markets. Brent crude oil prices neared $98 per barrel, adding to inflationary concerns and weighing on market sentiment across sectors. Overnight weakness in US markets, driven by technology sector selling and concerns over rising energy costs, dampened investor confidence. Heavy profit booking in Banking, Financial Services, and Midcap stocks further pressured the benchmark indices, with weakness across these heavyweight sectors erasing early gains and pushing both the Sensex and Nifty deeper into negative territory.
