Indian equity benchmarks extended their decline in Thursday afternoon trade, with the S&P BSE Sensex declining 476.09 points or 0.62% to 76,278.95 and the NSE Nifty 50 falling 147.25 points or 0.61% to 23,849.00 as of 12:52 PM IST. The market opened lower and remained under pressure throughout the session, with the Sensex hitting an intraday low of 76,270.43 and the Nifty touching the session's low of 23,846.95. The decline was primarily driven by Brent crude oil prices surging 9.4% to a record high of $96.46 per barrel amid continued US attacks on Iranian targets and Yemen's Houthi rebels targeting oil tankers in the Red Sea. The BSE 150 MidCap Index fell 0.38% and the BSE 250 SmallCap Index shed 0.68%, while market breadth remained weak with 1,130 shares rising, 1,809 shares falling, and 167 unchanged on the BSE. For the second consecutive trading session, the benchmark Nifty index remained confined to a narrow range, marking its narrowest daily trading range since July 10, 2026.
Foreign portfolio investors (FPIs) provided crucial support to the market by buying shares worth ₹1,650.16 crore on July 21, 2026, while domestic institutional investors (DIIs) were net sellers to the tune of ₹656.88 crore in the Indian equity market, according to provisional data. This contrasting flow pattern helped cushion the decline in benchmark indices, with FPIs offsetting the selling pressure from domestic institutional investors. The positive foreign inflows came despite ongoing concerns over geopolitical tensions and rising crude oil prices, indicating that foreign investors saw value in Indian equities at current levels.
On the sectoral front, oil-linked stocks were trading mixed with oil marketing companies (OMCs), tyres, aviation, and paints mostly trading lower, while upstream companies such as ONGC and Oil India (OIL) traded higher. Among individual stocks, HEG emerged as the biggest gainer, jumping 13% to ₹675.90 after reporting a 16% growth in consolidated net profit to ₹122 crore in Q1 FY27 compared to ₹74 crore in the same period last year, with revenue increasing 11% YoY to ₹681 crore. Tanla Platforms advanced 16.8% to ₹656 after recording a 20.1% YoY surge in consolidated net profit to ₹142.17 crore compared to ₹118.41 crore in Q1 FY26, with revenue growing 17.9% YoY to ₹1,226.39 crore. NTPC Green Energy soared 9.1% to ₹99.60 after posting a 38.26% YoY increase in consolidated net profit to ₹304.84 crore from ₹220.48 crore, with revenue jumping 62.72% YoY to ₹1,106.86 crore. However, Dr Reddy's dropped 7% to ₹1,101 after recording a 69% fall in net profit due to shrinking margins and declining revenue from the global generics business. IndusInd Bank declined 6.42% to ₹1,000.60 despite reporting an 88% growth in standalone net profit for Q1 FY27, while Waaree Renewable Technologies fell 6.69% to ₹951 despite strong quarterly results.
Global markets provided mixed cues as Asian markets traded in the green on Wednesday as investors took cues from a rebound in U.S. markets, shrugging off climbing oil prices as Houthi rebels threatened to open a front in the widening Middle East conflict. However, Brent crude for September 2026 settlement added $1.93 to $96 per barrel, reaching its highest level since June 8 after the United States launched a fresh round of strikes on Iran while Yemen's Houthi rebels targeted oil tankers in the Red Sea. The US military carried out a 12th consecutive night of attacks on Iran, with President Trump vowing to destroy an Iranian bridge or power plant each time Iran attacks a ship in the Strait of Hormuz. The yield on India's 10-year benchmark federal paper was up 0.38% to 6.817 compared with the previous close of 6.791. In the foreign exchange market, the rupee edged lower against the dollar, hovering at 96.2900 compared with its close of 96.2500 during the previous trading session. The US Dollar Index (DXY) was down 0.05% to 101.15, while the US 10-year bond yield fell 0.04% to 4.626.
Going forward, the 24,270-24,300 zone remains the immediate hurdle for Nifty, with a sustained move above this resistance band potentially triggering an extension of the ongoing pullback towards the 24,450 level in the short term. On the daily chart, the index formed a small-bodied candle with shadows on both sides, indicating indecision and a lack of clear directional bias at current levels. Domestic equities are expected to remain range-bound amid continued geopolitical tensions in West Asia, Brent crude oil prices near $96.46/bbl, weak rupee (around ₹96.29/US$), persistent Foreign Institutional Investor (FII) selling and mixed global cues. While the ongoing Q1FY27 earnings season is expected to drive stock-specific action, investor sentiment will continue to be influenced by developments in West Asia and the trajectory of crude oil prices. The 20-day EMA region of 24,100-24,050 is expected to provide immediate support on the downside, while the broader market resilience is evident with more than 120 stocks touching their 52-week highs, including Gabriel India, Gujarat Fluorochemicals, Manappuram Finance, Himadri Speciality Chemical, Ajanta Pharma, and others. Among sectors, PSU Bank declined by 0.82%, followed by Focused IT (0.68%), IT (0.66%), Top 10 Banks (0.52%), Energy (0.44%), and Financial Services (0.22%).
