The Indian equity markets faced significant losses early on Wednesday as a result of the US-Iran conflict and increasing Brent crude prices. Sensex fell by 371 points, or 0.48%, reaching 77,097 in morning trade, while Nifty dropped by 106 points, or 0.44%, to hit 24,081. Main broad-cap indices mirrored the benchmark indices, with Nifty Midcap 100 declining by 0.16% and Nifty Smallcap 100 by 0.33%.
Sectoral indices on NSE were predominantly in the red, with Nifty pharma and mid small healthcare leading the losses at 0.99% and 0.93%, respectively, due to the fresh US phased tariff plan on generic drugs. Nifty PSU bank also saw significant losses, down by 0.86%. On the positive side, the auto sector gained by 0.79%, while FMCG, Metal, and consumer sectors saw minor gains ranging from 0.09% to 0.15%.
Analysts noted that early automobile Q1 numbers were promising, reflecting optimism in exports and management commentary. The correction in leading banks’ prices seems to have stabilized, and the rupee is expected to remain strong due to positive news on dollar flows from FCNR deposits exceeding $20 billion. India’s relative stability and attractiveness in terms of valuation have been highlighted amidst the weakening chip trade and market corrections in countries like South Korea.
The Nifty 50 continued its corrective phase for the second consecutive day in the previous session, declining by 0.2% and closing below the 24,200 mark. Market participants observed indecisiveness as the index traded within the previous session’s range. The immediate support for Nifty is at 24,100, followed by 24,000, while the 24,300–24,400 zone poses a key hurdle for bullish movements, according to market participants.
Asian markets showed positive trends in early trading, following technology-driven gains on Wall Street, with investors awaiting major US technology companies’ earnings. In Asian markets, China’s Shanghai index rose by 0.35%, Shenzhen by 0.36%, Japan’s Nikkei by 1.93%, and South Korea’s Kospi by 4.31%. However, Hong Kong’s Hang Seng Index experienced a slight decline of 0.69%.
The US markets closed in the green, with Nasdaq rising by 1.29%, S&P 500 by 0.89%, and Dow Jones by 0.74%. On July 21, foreign institutional investors (FIIs) net bought equities worth Rs 1,650 crore, while domestic institutional investors (DIIs) net sold equities worth Rs 656 crore.
