Equities Ease as Financials, RIL Decline; SBI Funds Posts Strong Debut

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

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By Dehuti Jani

July 21, 2026 at 12:37 PM IST

Indian equity benchmarks ended lower on Tuesday, weighed by continued selling in shares of HDFC Bank and Reliance Industries, while conflicting signals from West Asia kept sentiment cautious. The Nifty50 fell 0.21% to 24,187.70 and the Sensex declined 0.31% to 77,470.11. HDFC Bank, the heaviest-weighted stock in the benchmark indices, fell 2.1% to a five-week low after losing 5.1% in the previous session following weaker-than-expected first-quarter net interest margins.

SBI Funds Management gained 6.2% on its market debut, valuing the company at 1.24 trillion rupees and making it India's second-most valuable listed asset manager, reflecting strong investor confidence in the country's fast-growing asset management industry.

Reliance Industries fell 1.5% for the second consecutive session after rallying ahead of its first-quarter results. Eight of the 16 major sectors declined, but mid- and small-cap stocks outperformed, rising 0.3% and 0.5%, respectively, as stock- and sector-specific moves, supported by relatively strong earnings growth, helped the broader market. UltraTech Cement rose 1.5%, extending gains after reporting strong quarterly profit, while SBI Funds Management ended 6.2% higher on its market debut following a $1.03 billion initial public offering last week.

Higher oil prices remained a risk for India, the world's third-largest crude importer, as they could add to inflationary pressures, widen the trade deficit and squeeze corporate margins.

Indian rupee strengthened modestly on Tuesday as easing concerns over the conflict in West Asia helped cool crude oil prices, offering relief to the domestic currency after it had slipped to a two-month low. The rupee rose 0.2% to close at 96.2350 against the US dollar.

Indian government bond yields ended higher after reversing early decline as crude oil prices climbed in the latter half of the trading session following an escalation in tensions in West Asia, prompting traders to pare positions amid heightened market volatility. The yield on the benchmark 6.94%, 2036 bond rose to 6.7938% from the previous close of 6.7770%, after declining to an intraday low of 6.7577% earlier in the session.

Top Movers of the Day

Karur Vysya Bank surged 13.11% to ₹340.45 after the private lender reported a strong June quarter performance. Net profit jumped 45% year-on-year to ₹7.56 billion, driven by healthy loan growth, higher net interest income and improved net interest margins, boosting investor sentiment.

Mahindra & Mahindra Financial Services gained 1.41% to ₹3,210 amid heavy buying interest. The company’s performance was driven by strong market sentiment and momentum in financial stocks.

Gujarat Fluorochemicals advanced 6.74% to ₹4,607 on strong trading volumes. The company’s gains were largely driven by investor buying interest.

Gabriel India rose 8.02% to ₹1,510 to hit a fresh all-time high with the stock extending gains on sustained buying momentum.

TVS Motor Company grew 5.67% to ₹3,793.90. The company reported a 51.4% year-on-year increase in June-quarter net profit to ₹11.74 billion from ₹7.76 billion, as robust demand for higher-margin motorcycles and growing sales of premium bikes and electric scooters helped offset the impact of higher raw-material costs linked to the Iran war, while last year's cut in India's two-wheeler taxes continued to support demand.

Data Patterns (India) climbed 6.75% to ₹4,260 amid heavy trading volumes.

Jaiprakash Power Ventures rose 4.91% to ₹17.72 amid strong buying interest. Strong growth in both revenue and profit, coupled with a return to profitability on a sequential basis, boosted investor sentiment.

HFCL gained 5% to ₹218.43 after the company reported its June quarter earnings. Investors reacted positively to the financial results, helping the stock emerge among the day’s top gainers.

Nuvoco Vistas Corporation advanced 4.65% to ₹362 on heavy trading volumes and investor interest after a host of brokerages issued bullish calls on the counter following a robust set of figures in the first quarter of FY27. The company reported a 20% increase in net profit to ₹1.60 billion in the first quarter of FY27 and a 9% growth in revenue to ₹31.29 billion.

Manappuram Finance gained 4.55% to ₹352.45 amid continued buying in financial stocks with the rally appearing to be sentiment-driven.

Aditya Birla Sun Life AMC fell 6.53% to ₹1,045.60 when the company reported its June quarter results. Net profit rose 12% year-on-year to ₹3.11 billion, but muted sequential revenue growth disappointed investors, triggering profit booking. The total EBITDA rose 10% year on year to ₹4.21 billion, although the margin narrowed to 68.1% from 68.5%, while quarterly average mutual fund AUM increased 6% to ₹420 billion and alternative assets surged 579% to ₹190 billion, highlighting strong growth in newer businesses despite muted sequential revenue growth.

Aegis Logistics declined 4.57% to ₹1,320.70 amid selling pressure with the weakness largely attributed to profit booking following the stock’s recent rally.

Transformers and Rectifiers (India) fell 4.81% to ₹317.55 after the company reported its June quarter earnings. While revenue and EBITDA increased year-on-year, a decline in net profit and contraction in operating margins weighed on investor sentiment despite a healthy order book.

Futures & Options
The Nifty July 2026 futures contract closed at 24,185, a discount of 2.70 points to the Nifty 50's cash-market close of 24,187.70. The benchmark index fell 50.90 points, or 0.21%, while the NSE's India VIX declined 2.92% to 12.60, indicating lower expected near-term volatility.

HDFC Bank, Infosys and ICICI Bank were the most-traded individual stock futures contracts in the NSE's F&O segment. The July 2026 F&O contracts are scheduled to expire on July 28, 2026.

Bonds
Indian government bond yields ended higher after reversing early gains on Monday as crude oil prices climbed following an escalation in tensions in West Asia, prompting traders to avoid aggressive positions amid heightened market volatility. The benchmark 6.94% GS 2036 yield ended at 6.7938% from the previous close of 6.7770%, after falling to an intraday low of 6.7577%.

Dealers said reports that Yemen's Houthis had announced a naval blockade of Saudi Arabia lifted Brent crude prices towards $90 per barrel, reviving concerns over imported inflation and the possibility that the RBI could tighten monetary policy sooner than previously expected.

Shorter-tenure government securities, however, continued to outperform, supported by stronger-than-expected inflows into the RBI's FCNR(B) swap facility for banks, which improved liquidity expectations at the shorter end of the yield curve.

Forex
The Indian rupee firmed 0.2% to 96.2350 per dollar today as hopes of diplomatic efforts between the United States and Iran helped temper an oil rally that had pushed the currency to a two-month low.

Oil prices initially fell more than 1% before turning higher as markets weighed reports of mediation efforts against fresh exchanges of fire between the two sides and threats by Yemen's Houthis to blockade Saudi Arabia. Foreign exchange inflows from measures announced by the Reserve Bank of India also supported sentiment.

Crypto
The cryptocurrency market traded higher today, led by gains in Bitcoin and Ethereum, with Ethereum outperforming the broader market. Bitcoin traded near $65,479.54 on Tuesday, up 1.6% from the previous session and extending gains after five consecutive days of net inflows into US spot Bitcoin ETFs. The cryptocurrency's market capitalisation stood at $1.31 trillion, while 24-hour trading volume rose to $31.15 billion. Traders now look towards the Federal Reserve's July 28-29 meeting for the next market cue.

Ethereum outperformed the broader market, rising 3.03% to $1,922.81 and extending its recent gains. The cryptocurrency's market capitalisation stood at $232.05 billion, while 24-hour trading volume reached $12.08 billion. Hyperliquid led gains among large-cap tokens, rising 4.57% on renewed derivatives activity.

US Stock Futures
US stock futures climbed early today as investors looked past the latest developments in the Iran war and turned their focus to corporate earnings. Dow Jones Industrial Average futures rose 208 points, or 0.40%, while S&P 500 futures gained 0.55% and Nasdaq-100 futures advanced 1.36%.

Oil prices edged lower as traders monitored renewed diplomatic efforts aimed at mediating between the United States and Iran. West Texas Intermediate crude futures fell 0.88% to $82.50 a barrel, while Brent crude was nearly 1% lower at $88.34. Investors were also focused on a busy earnings calendar, with General Motors and 3M due to report before the opening bell and Chubb expected to release results after the market close.

US Treasury Notes
US Treasury note yields edged higher as investors monitored a relatively quiet week for economic data alongside ongoing geopolitical tensions in West Asia. The benchmark 10-year yield stood at 4.60%, while the two-year and five-year note yields were at 4.22% and 4.13%, respectively, with markets continuing to assess the impact of geopolitical developments on the inflation outlook and the Federal Reserve's interest-rate path.

The 30-year Treasury bond yield stood at 4.41%, as investors weighed the lack of major near-term economic data against persistent uncertainty over global developments.

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