Indian equity markets extended their decline for a third consecutive session on Wednesday, with the Sensex tumbling 715.06 points or 0.92% to 76,755.05 and the Nifty 50 falling 191.45 points or 0.79% to 23,996.25, closing below the crucial 24,000 mark. According to latest market data, the weakness was driven by rising crude oil prices, sharp rupee depreciation and profit booking in heavyweight stocks. Over the three consecutive sessions, the Sensex has lost 1.78% while the Nifty has slipped 1.38%. The broader market underperformed with the BSE 150 MidCap Index dropping 1.05% and the BSE 250 SmallCap Index declining 1.39%. Market breadth remained weak with 1,458 shares rising and 2,780 shares falling on the BSE, while the NSE's India VIX jumped 5.49% to 13.29.
According to a report by ICICI Securities, India's equity markets are positioned to capitalize on structural shifts in the global economy as rising geopolitical tensions and supply chain realignment create long-term opportunities. The report indicates that the global economic landscape has undergone a fundamental transformation over the past decade, moving away from the era of unrestricted globalisation towards a 'new world order' marked by elevated geopolitical risks and inward-looking economic policies. Despite these changes, global trade has demonstrated remarkable resilience, with global trade to GDP rising to 68% in 2025 from 54% in 2016, driven by supply chain diversification, trade rerouting through connector countries, rising services exports and increasing bilateral trade agreements.
Sectorally, pharma, banks and IT stocks led the decline while FMCG and auto bucked the trend. Among individual stocks, Bandhan Bank plunged 16.63% after the lender lowered its FY27 exit return on assets guidance and warned of sustained margin pressure. The bank revised its FY27 exit RoA guidance to 1.2%-1.4% from 1.6%-1.8% earlier. Tips Music slipped 12.15% after reporting weak Q1 FY27 earnings with standalone net profit of ₹43.70 crore, down 4.66% YoY. However, several companies reported strong quarterly results, with Canara Robeco Asset Management surging 5.85% after consolidated net profit increased 23.93% YoY to ₹75.60 crore, and Crisil rallying 4.22% following a 26.2% rise in consolidated net profit to ₹216.5 crore.
In the commodities market, Brent crude for September 2026 settlement added $3.76 or 4.13% to $94.77 a barrel, contributing to market pressure. The partially convertible rupee edged lower against the dollar, hovering at 96.5900 compared with its close of 96.2500 during the previous session. The yield on India's 10-year benchmark federal paper was up 0.21% to 6.805 as compared with previous close 6.791. MCX Gold futures for 5 August 2026 settlement rose 1.22% to ₹1,44,623. The US Dollar Index (DXY) was down 0.05% to 101.15, providing some relief to rupee-denominated assets.
Pharmaceutical companies faced significant pressure after US President Donald Trump unveiled a phased tariff plan on imported generic medicines. Trump announced that generic medicines imported into the US will continue to attract zero tariffs for two years from 1 August 2026, but the tariff will then rise to 100% from 1 August 2028 for one year, before increasing to 200% from 1 August 2029. The Nifty Pharma index declined 1.31% to 25,752.25, giving up part of the 1.75% gain it had logged over the previous two trading sessions. Lupin led the losses, plunging 4.35%, followed by Piramal Pharma (4.20%), Ajanta Pharma (3.25%), Aurobindo Pharma (2.96%), Sai Life Sciences (2.77%), Gland Pharma (2.20%), Dr. Reddy's Laboratories (2.16%), Wockhardt (2.01%), Alkem Laboratories (1.90%), Mankind Pharma (1.86%), Zydus Lifesciences (1.76%), Glenmark Pharmaceuticals (1.43%), Cipla (1.15%), Sun Pharmaceutical Industries (0.91%), Laurus Labs (0.89%), Ipca Laboratories (0.39%) and Biocon (0.34%).
