The BSE SENSEX closed at 77,470.11, down 238.41 points or 0.31%. The NIFTY 50 finished at 24,187.70, off 50.80 points or 0.21%. Both indices opened weak — Sensex at 77,649.63 and Nifty at 24,216.05 — and spent the day swinging between gains and losses before settling near day’s lows.
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BANKING DRAG RETURNS
The pain was concentrated in financials.
HDFC Bank dropped 1.31% to ₹767.4, adding to Monday’s 5.1% crash after NIMs hit an all-time low. Brokers said deposit costs are rising faster than loan yields. Axis Bank and Kotak Mahindra also ended in red, pulling Nifty Private Bank and Nifty Financial Services down the most.
Adding to the gloom, HDFC Bank said its board will seek an independent review before sending CEO SashidharJagdishan’s reappointment file to RBI.
The silver lining: IT bounced. Tech Mahindra rose 0.82% and Nifty IT gained 0.7%, snapping a 2-day losing run. Shriram Finance (+2.38%), BajFinserv (+1.32%) and IndiGo (+1.00%) were the top Nifty gainers.
Broader markets did better. Midcap and Smallcap indices ended positive as retail participation stayed strong with 7 lakh new investors entering every week.
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GEOPOLITICS TAKES CENTRE STAGE
Three external factors kept traders nervous:
1. Crude spikes: Brent hovered near $89/bbl after briefly crossing $90 last week. Iran-backed Houthis threatened to block Saudi oil shipments, reviving fears of a supply shock.
2. Red Sea risk: For India, higher oil and a softer rupee mean imported inflation. The IMF’s India head flagged crude and a patchy monsoon as key risks to 6.4% GDP growth in FY27. Monsoon was 23.8% deficient as of July 19, though Kharif sowing has picked up.
3. Tariff headlines: Trump slapped 50% tariffs on $20 billion of Canadian goods over dairy, autos and alcohol. Canada called it a violation of NAFTA and said it’s ready for talks.
Global cues were mixed. US futures were up on ceasefire hopes, but Asia stayed cautious ahead of US-China AI talks slated for September.
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EARNINGS, IPOs IN FOCUS
Stock-specific action dominated.
– UltraTech Cement: Q1 PAT up 16.8% YoY to ₹2,599.3 cr. Stock +1%.
– Paytm: Profit surged 79% to ₹220 cr, but shares fell 3% after the company dropped a bonus issue proposal.
– SBI Funds Management: Listed at ₹613.30, a 6.85% premium.
– Alpine Texworld: Debuted flat, then hit 5% lower circuit.
More results due today: Bajaj Auto, Adani Energy, TVS Motor, Indian Hotels, JSW Infra.
In global deal news, JPMorgan and other US banks will back Japan’s $550 billion investment push into US projects across Texas, Georgia and Ohio.
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CHARTSPEAK
Technically, Nifty faces resistance at 24,500. Immediate support is at 24,100, with a stronger floor near 24,000. India VIX rose, signaling caution.
“Market will likely remain range-bound this week, +/-0.5%,” said G. Chokkalingam of Equinomics. “Small and midcaps may continue to outperform.”
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ROAD AHEAD
The near-term direction hinges on 3 things: oil prices, bank earnings, and Middle East headlines.
If crude cools and the Red Sea situation de-escalates, dips could see buying in IT, autos and capital goods. If not, volatility is here to stay.
For investors, it’s a stock-picker’s market till we get clarity on Fed policy and FPI flows.
