MARKETS REPORT: Dalal Street Bleeds for Third Straight Session: Nifty drops Below 24,000 Mark

Last Updated on July 22, 2026 6:44 pm by BIZNAMA NEWS

By Our Business Correspondent

Indian equity markets extended their downward spiral for the third consecutive session on Wednesday, battered by a toxic mix of surging global crude oil prices, a weakening Indian rupee, and aggressive profit-taking in heavyweight index constituents. The benchmark Nifty 50 surrendered the psychologically crucial 24,000 mark, highlighting broader market fatigue amidst geopolitical friction and regulatory headwinds.

At the closing bell, the S&P BSE Sensex stood down by 715.06 points, or 0.92%, at 76,755.05. The Nifty 50 index dropped 191.45 points, or 0.79%, to settle at 23,996.25. Over the last three trading sessions, cumulative losses have reached 1.78% for the Sensex and 1.38% for the Nifty.

Market breadth remained overwhelmingly adverse. Out of 4,431 shares traded on the Bombay Stock Exchange (BSE), 2,780 declined, 1,458 advanced, and 193 remained unchanged. The broader market faced severe selling pressure, underperforming frontline gauges—the BSE 150 MidCap Index dropped 1.05%, while the BSE 250 SmallCap Index shrank 1.39%. Reflecting rising trader anxiety, India VIX—the market’s fear gauge—jumped 5.49% to 13.29.

Heavyweights Lead Sectoral Slide; FMCG & Auto Buck the Trend

Heavyweight financial and energy counters pulled the market lower. Financial powerhouses ICICI Bank (down 1.60%) and HDFC Bank (down 0.99%), alongside energy conglomerate Reliance Industries (down 1.51%), were the primary drivers of the day’s losses.

Sectorally, banking, IT, and pharmaceutical stocks led the retreat. However, defensive sectors such as FMCG and auto managed to buck the trend, offering brief respite amidst wide scale selling.

US Tariff Policy Rattles Pharma Basket

Pharmaceutical stocks faced intense selling pressure following an announcement by US President Donald Trump detailing a phased tariff roadmap on imported generic medicines. Under the proposal:

• Zero Tariffs: Applicable for two years effective 1 August 2026.
• 100% Tariff: Imposed from 1 August 2028 for one year.
• 200% Tariff: Imposed from 1 August 2029 onward.

The Nifty Pharma index lost 1.31% to close at 25,752.25, erasing gains from the previous two sessions. Lupin spearheaded the decline, plunging 4.35%, closely followed by Piramal Pharma (-4.20%), Ajanta Pharma (-3.25%), and Aurobindo Pharma (-2.96%). Top-tier drugmakers such as Dr. Reddy’s Laboratories (-2.16%), Cipla (-1.15%), and Sun Pharma (-0.91%) also closed in the red.

Key Macro Metrics: Oil Spikes, Rupee Slips, and Yields Edge Up

A volatile macroeconomic backdrop continued to rattle local market sentiment, driven largely by geopolitical friction in the Middle East.

Spurred by reports of Houthi rebel threats in the Red Sea—forcing two Saudi Arabian crude tankers to alter course—Brent Crude spiked over 4%. The surge in energy costs compounded worries for India’s import-heavy economy, weakening the domestic currency to 96.5900 per US Dollar.

Global Cues: Mixed Asia, Moderate European Gain on Inflation Softening

Global markets offered a mixed backdrop. European indices edged higher following positive macro data from the UK, where June 2026 inflation eased to 2.6% year-on-year, down from 2.8% in May. This brings the UK closer to the Bank of England’s 2% target, beating eurozone inflation (2.8%) and US inflation (3.5%).

In Asia, markets ended on a mixed note following an overnight retreat on Wall Street, where the Dow Jones Industrial Average fell 0.59% (to 51,839.26) and the S&P 500 slipped 0.19% (to 7,443.28). Wall Street sentiment stabilized late in the session after Iranian Foreign Ministry spokesperson Esmail Baghaei signaled open channels for diplomatic negotiations, despite ongoing US strikes in the region.

Earnings & Corporate Action Drive Individual Stock Movements

Corporate news flow sparked significant price action across individual counters, led by major Q1 FY27 earnings releases and operational updates.

+-----------------------------------------------------------------------+
|                       STOCKS IN THE SPOTLIGHT                         |
+------------------------------------+----------------------------------+
| TOP GAINERS                        | TOP LOSERS                       |
+------------------------------------+----------------------------------+
| MPS Ltd: +20.00%                   | Bandhan Bank: -16.63%            |
| Cyient DLM: +11.72%                | Tips Music: -12.15%              |
| M&M Financial Services: +7.60%     | Sunteck Realty: -7.94%           |
| Canara Robeco AMC: +5.85%          | Bharat Coking Coal: -6.82%       |
| Crisil: +4.22%                     | Lupin Ltd: -4.35%                |
+------------------------------------+----------------------------------+

The Key Corporate Movers:

• Bandhan Bank (-16.63%): The lender cratered after lowering its FY27 exit Return on Assets (RoA) target to 1.2%–1.4% (down from 1.6%–1.8%), citing persistent margin pressure. Although Q1 FY27 standalone net profit rose 34.9% YoY to ₹501.67 crore, it contracted 6.1% on a sequential basis.
• Nestle India (+3.31%): The FMCG giant posted a stellar performance, reporting a 47.92% YoY surge in Q1 FY27 net profit to ₹975.12 crore, fueled by a 25% surge in domestic sales.
• M&M Financial Services (+7.60%): The NBFC rallied on a 69.6% YoY jump in Q1 net profit to ₹899 crore, supported by record disbursements, margin expansion, and reduced credit costs.
• Cyient DLM (+11.72%) & MPS Ltd (+20.00%): Cyient DLM surged on a 118.23% YoY increase in Q1 net profit to ₹16.28 crore. Publishing solution provider MPS hit its upper circuit as Q1 net profit climbed 42.99% YoY to ₹50.39 crore.
• Tips Music (-12.15%): The stock tanked after quarterly net profit fell 25.99% QoQ to ₹43.70 crore and management deferred a share buyback decision to 5 August 2026.
• Bharat Coking Coal (-6.82%) & Sunteck Realty (-7.94%): Bharat Coking Coal sank into the red with a net loss of ₹68.09 crore for Q1 FY27. Meanwhile, Sunteck Realty weakened after Q1 net profit dropped 33.68% QoQ to ₹42.28 crore on a 43.5% drop in operational revenues.