Indian stock markets ended sharply lower on Wednesday (July 22) with BSE Sensex falling 715.06 points, or 0.92%, to close at 76,755.05 and Nifty 50 declining 191.45 points, or 0.79%, to settle at 23,996.25, slipping below the psychologically important 24,000 level. The selloff wiped off nearly ₹4.25 lakh crore from the total market capitalisation of all companies listed on BSE, dragging it down to ₹480 lakh crore. Market breadth remained weak with nearly 40 Nifty constituents ending lower, while Nifty Bank index dropped 709 points to 57,127 and Nifty Midcap Index declined 687 points to 62,301. The India VIX rose to 13.29 levels, up by 5.49%, indicating heightened volatility and caution among investors. As per Business Standard, over the last three consecutive trading sessions, the Sensex has lost 1.78% while the Nifty has slipped 1.38%. The broader market underperformed with BSE 150 MidCap Index dropping 1.05% and BSE 250 SmallCap Index declining 1.39%. On the BSE, 1,458 shares rose and 2,780 shares fell, with 193 shares unchanged, highlighting the widespread selling pressure across the market.
The market decline was primarily driven by Brent crude prices surging to a two-month high above $92 a barrel amid growing fears of additional supply disruptions following renewed tensions in the Middle East. In the commodities market, Brent crude for September 2026 settlement added $3.76 or 4.13% to $94.77 a barrel. US benchmark WTI crude futures climbed past $85 a barrel, with Goldman Sachs cautioning that Brent prices could rise to as much as $120 a barrel if disruptions in the Strait of Hormuz continue. Oil prices surged to a two-month high on Wednesday amid growing fears of additional supply disruptions following renewed tensions in the Middle East. OMC stocks representing state-run Oil Marketing Companies were significantly impacted, with Bharat Petroleum Corporation down 1.52% to ₹314 apiece, Hindustan Petroleum Corporation trading 2.13% lower at ₹398 apiece, and Indian Oil Corporation down 0.77% to ₹142. With Iran already threatening shipping through the Strait of Hormuz, the Red Sea has served as the main alternate route out for millions of barrels of Saudi oil per day. Iran-US conflict deepened after three tankers transporting Saudi crude to Asia reversed course in the Red Sea on Tuesday following alleged threats from Yemen's Iran-backed Houthi rebels. U.S. Secretary of State Marco Rubio noted that Iran is not serious about talks, while the United States remains willing to negotiate an end to the Iran crisis.
Markets came under pressure after Trump announced a phased increase in tariffs on generic medicines imported into the United States. From August 1, 2026, imported generic drugs will continue to face a zero tariff for two years, after that they will be subject to a 100% tariff for one year, followed by a 200% tariff thereafter. Pharma stocks remained under heavy pressure after US President Donald Trump unveiled this phased tariff plan on imported generic medicines, giving pharmaceutical companies a two-year window before higher duties come into effect. 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%) and Biocon (0.34%). Torrent Pharmaceuticals ended nearly flat, down 0.01%. Under the plan, generic medicines entering the US will continue to attract zero tariffs for two years from August 1, 2026, thereafter imports will face a 100% tariff for one year, followed by a 200% levy. Tushar Manudhane, senior vice president at Motilal Oswal Financial Services, noted that 90% of generic prescription is imported by US, effectively increasing the tariff for everyone (as and when it happens) supplying to US market and it is not India specific.
Sectorally, realty stocks led the decline, with the Nifty Realty index falling 2.6%, while the Nifty Media index also slipped 2.68% to 1,496.20, declining 2.15% in the two consecutive trading sessions. Information technology, pharmaceutical and private banking stocks witnessed losses of around 1% each. Among the Nifty constituents, InterGlobe Aviation, Dr. Reddy's Laboratories and Jio Financial Services emerged as the top losers. The weakness was even more pronounced in the broader markets, with the Nifty MidCap index ending 1.09% lower and the Nifty SmallCap index dropping 1.54%. However, Nifty Auto was the only index that bucked the trend, gaining nearly 1% intraday supported by strong early quarterly business updates. In the last three trading sessions, the SENSEX has dropped 1.79% and NIFTY50 index has tumbled 1.4%, as per Upstox Securities. ICICI Bank (down 1.60%), Reliance Industries (down 1.51%) and HDFC Bank (down 0.99%) dragged the Nifty lower today. Nestle India jumped 3.31% after the company's standalone net profit climbed 47.92% to ₹975.12 crore in Q1 FY27, while Bandhan Bank tumbled 17% after the lender lowered its FY27 exit return on assets guidance. Among individual stocks, IndiGo was the top Nifty loser, tracking crude oil price movement and concerns around competition. Oracle Financial Services Software declined 7% ahead of its June quarter results.
Foreign institutional investors resumed selling Indian equities on Wednesday, offloading shares worth ₹819.20 crore on a provisional basis, according to exchange data. The move comes a day after FIIs briefly turned net buyers, reversing their recent selling trend. On Tuesday, foreign investors had purchased Indian equities following a prolonged spell of outflows. FIIs bought equities worth ₹12,889.82 crore and sold shares worth ₹13,709.02 crore, while DIIs recorded purchases of ₹13,665.69 crore and sales of ₹14,083.95 crore. Domestic institutional investors (DIIs) also remained net sellers during Wednesday's session, selling equities worth ₹418.26 crore. The selling comes after DIIs snapped their nine-session buying streak on Tuesday, having consistently supported the market during a period of sustained foreign outflows. Heavyweights remained a drag on the benchmarks, with IT stocks, Reliance Industries and HDFC Bank among the key losers. Among individual stocks, IndiGo was the top Nifty loser, tracking crude oil price movement and concerns around competition.
The Nifty 50 has been consolidating within a broad range and has now slipped below the psychologically important 24,000 level. Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, noted that the Nifty 50 has been consolidating within the 23,785 – 24,531 range on the daily chart since June 15, reflecting a lack of clear directional momentum. During this phase, the Relative Strength Index (RSI) made multiple attempts to move above the 60 mark but failed to sustain those gains, indicating that bullish momentum remained weak. "Meanwhile, the DI- line has recently crossed above the DI+ line on the ADX indicator, suggesting that sellers are gradually gaining the upper hand. Despite the recent pullback from lower levels, the Nifty 50 index continues to trade below its key moving averages, keeping the short-term bias cautious," Shah said. From a technical perspective, Shah said the 20-day exponential moving average (EMA) zone of 24,070 – 24,100 is likely to act as immediate resistance for the Nifty 50 index. On the downside, the 23,800 – 23,750 zone remains a crucial support area. Ruchit Jain, Head of Equity Technical Research at Motilal Oswal Financial Services, said the Nifty 50 is undergoing a short-term consolidation phase and has been trading within a range over the past few weeks. "The immediate support for the Nifty 50 is placed around 23,800, while resistance is seen in the 24,200 – 24,250 zone. A breakout on either side of this range is required for a directional move," Jain said. A decisive and sustained breach below the 23,800 support zone could trigger an extension of the ongoing weakness and lead to further downside in the index.
