Indian benchmark indices witnessed continued weakness on Thursday, with the S&P BSE Sensex closing 1.44 points higher at 77,186.87 and the NSE Nifty 50 settling 5.75 points, or 0.02%, lower at 24,072.75 as of latest market data. The market showed significant underperformance with the BSE 150 MidCap Index falling 0.64% and the BSE 250 SmallCap Index dropping 1.07%. Market breadth remained negative with 1,435 shares rising and 2,736 shares falling on the BSE, while a total of 191 shares remained unchanged. The NSE's India VIX rallied 3.36% to 13.73, reflecting elevated volatility amid continued geopolitical uncertainty. GIFT Nifty July 2026 futures currently traded around 24,113 level, a premium of nearly 17 points from the Nifty futures' previous close, indicating a steady start for the benchmark index today, according to latest market data.
The Nifty PSU Bank index dropped 1.80% to 8,308.70, reversing from its recent three-session rally that saw the index gain 4.81%, according to Business Standard. Major PSU banks declined significantly with Bank of Maharashtra falling 3.26%, Canara Bank down 2.89%, Bank of India declining 2.33%, State Bank of India dropping 1.87%, and Bank of Baroda falling 1.82%. Other major lenders including Punjab National Bank (down 1.39%), Indian Bank (down 1.67%), Indian Overseas Bank (down 1.35%), Punjab & Sind Bank (down 1.28%), and UCO Bank (down 1.25%) also contributed to the sector's weakness. The decline came despite the sector's strong performance in recent sessions, highlighting the volatile nature of current market sentiment.
As reported by Business Standard, India's retail inflation breached the Reserve Bank's target for the first time in 17 months, with the consumer price index rising to 4.38% year-over-year in June, up from 3.93% in May. The year-on-year inflation rate based on the All India Consumer Food Price Index (CFPI) for June was 5.32%, with transport inflation rising 4.3% in June, quicker than the 1.75% rise in May. Inflation was led by higher fuel and food costs, which rose amid Iran war-driven supply disruptions and a delay in seasonal rains. India's wholesale price index (WPI)-based inflation rose to 9.87% in June 2026 from 9.68% in May 2026, with the increase primarily driven by higher prices of food articles, mineral oils, basic metals, and chemicals. The latest escalation came after Iran and the U.S. exchanged airstrikes over the weekend, with Tehran targeting U.S. facilities in several Gulf countries and declaring the Strait of Hormuz closed, though Trump disputed that claim on Sunday, saying the key shipping lane remained open to commercial traffic. Federal Reserve Governor Christopher Waller said the U.S. central bank may need to raise interest rates "in the near term" if coming data show inflation continuing well above the 2% target, adding to market concerns about potential rate hikes.
As reported by Business Standard, Brent crude for September 2026 settlement added $3.08 or 3.70% to $86.38 a barrel, with Brent crude futures climbing 2.6% to $85.50 a barrel, their highest since mid-June, as trading resumed in Asia after President Donald Trump said the U.S. was reinstating its blockade of Iranian shipping in the Gulf and would collect a 20% fee on cargo traversing the Strait of Hormuz. Overnight, stocks on Wall Street sold off with the S&P 500 losing 0.79% to end at 7,515.34, while the Nasdaq Composite fell 1.55% to 25,873.18. European markets declined as higher oil prices again fueled investor fears of sticky inflation. Asian markets advanced on Tuesday as investors shrugged off the ongoing US-Iran conflict, though gains remained capped after Trump's latest comments. With much of Asia crumbling — Seoul's market fell 9% and Tokyo dropped nearly 2% following fresh US strikes on Iran and Iranian retaliations across four countries, India's resilience stood out. Foreign Institutional Investors (FIIs) sold shares worth ₹3,062.27 crore on July 13, while domestic institutional investors (DIIs) were net buyers to the tune of ₹2,171.70 crore in the Indian equity market. U.S. President Donald Trump reimposed a naval blockade of Iranian ports on Tuesday and threatened to attack power plants and bridges next week unless Iran resumes negotiations to end their conflict, though he scrapped a plan for a 20% fee on shipping through Hormuz.
Foreign portfolio investors (FPIs) sold shares worth ₹739.69 crore on July 14, while domestic institutional investors (DIIs) were net buyers to the tune of ₹2,927.71 crore in the Indian equity market, according to provisional data from Business Standard. The FIIs have bought shares worth ₹770.93 crore so far in July (till July 14), contrasting with their cash sales of ₹49,028.63 crore in June, ₹55,963.33 crore in May and ₹70,135.46 crore in April. Selling pressure was broad-based, with IT, auto and banking stocks leading the decline, while pharma and metal shares outperformed, as reported by Business Standard. Market experts expect Indian equities to trade sideways to mixed amid weak global cues and ongoing geopolitical tensions in West Asia, according to Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services. With the Q1FY27 earnings season gathering pace, stock-specific action is likely to dominate.
