Oil Shock, Bank Sell-Off Push Nifty Below 24,000 as Rupee Nears Record Low

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

iStock.com

By Dehuti Jani

July 22, 2026 at 12:35 PM IST

Indian equities extended their decline for a third consecutive session today as a sharp rise in crude oil prices, selling in banking shares and escalating geopolitical tensions weighed on investor sentiment. The Sensex fell 715.06 points, or 0.92%, to 76,755.05, while the Nifty50 declined 191.45 points, or 0.79%, to 23,996.25.

The sell-off was broad-based, with all Nifty sectoral indices ending lower except the auto index, which edged higher. The Nifty Smallcap 100 and Nifty Midcap 100 also fell 1.02% and 0.79%.

Brent crude rose 5% to above $95 a barrel, its highest level in more than five weeks, as the widening West Asia conflict heightened concerns over supply disruptions through the Strait of Hormuz. Two oil tankers carrying Saudi crude to Asia reversed course in the Red Sea, while another tanker was hit in the Strait of Hormuz.

The Nifty Pharma index fell more than 2% to lead sectoral losses, while Bajaj Auto and TVS Motor gained 5.92% and 3.30%, respectively, after reporting higher quarterly profit. Higher crude prices remain a key risk for India as they could fuel inflation, widen the trade deficit and raise costs.

Bandhan Bank plunged 16.63% after the lender lowered its return-on-assets guidance for the current financial year, citing expectations of narrower net interest margins and higher operating expenses despite a stronger-than-expected quarterly profit. HDFC Bank slipped 1%, extending its post-results decline to around 8% over the past three sessions,

The Indian rupee fell 0.3% to 96.5650 per dollar today, nearing its all-time low of 96.96 hit in May, as Brent crude surged. Dollar sales by state-run banks helped limit the rupee's losses, but the currency remains vulnerable to a sustained rise in oil prices.

Indian government bonds fell as Brent crude oil climbed towards $95 a barrel, outweighing support from foreign portfolio investor buying. The yield on the benchmark 6.94% 2036 bond ended at 6.8012%, compared with 6.7938% at the previous close.

Top Movers of the day

Data Patterns rose 11.85% to ₹4,746.70 today. The stock witnessed strong buying interest amid continued investor preference for defence counters, with market participants tracking expectations of sustained government spending on indigenous defence manufacturing.

Mahindra & Mahindra Financial Services gained 7.60% to ₹376.45. The stock appeared to track strength in select financials amid broader market gains.

Bajaj Auto climbed 5.92% to ₹11,019 after the company reported a 46% year-on-year jump in consolidated net profit to ₹3,226 crore for the June quarter, aided by robust operating performance. The earnings beat lifted investor sentiment, driving the stock higher.

RR Kabel advanced 4.89% to ₹2,460. The company recently reported a 34% year-on-year increase in March-quarter revenue, which has kept investor sentiment constructive towards the stock.

CRISIL rose 4.22% to ₹4,484. The stock has remained supported by the company’s strong earnings trajectory, with March-quarter revenue rising 30% year on year.

Chennai Petroleum Corporation gained 4.24% to ₹1,311.50 after the company announced its quarterly financial results. Investors reacted positively to the earnings announcement.

Emami rose 3.74% to ₹416. The stock appeared to move in line with positive sentiment in the FMCG space.

CarTrade Tech gained 3.01% to ₹2,808 as positive brokerage coverage and strong earnings continued to support sentiment, with UBS initiating coverage with a 'Buy' rating and a ₹4,000 target

TVS Motor Company advanced 3.30% to ₹3,917. The stock tracked gains in the broader automobile sector. The company’s standalone net profit jumped 51.35% year on year to ₹11.74 billion and revenue rose 38% to ₹138.96 billion. Record sales of 1.63 million two- and three-wheelers, including 86% growth in electric two-wheeler volumes, and a 30-basis-point expansion in EBITDA margin to 12.8% strengthened the earnings-driven rally.

Kalyan Jewellers India rose 3.31% to ₹596.10. The stock appears to benefit from buying interest in organised jewellery retailers.

Bandhan Bank tumbled 16.63% to ₹174.10 after the private lender cut its FY27 return on assets (RoA) guidance to 1.2%-1.4% from 1.6%-1.8%, overshadowing a 35% year-on-year rise in June-quarter net profit to ₹502 crore. The revised profitability outlook, coupled with concerns over margin pressure and higher funding costs, triggered sharp selling in the stock, with several brokerages turning cautious following the earnings announcement.

Oracle Financial Services Software fell 7.35% to ₹10,777 after the company announced its June-quarter results. The company reported growth in revenue and profit, investors booked profits following the earnings,

Futures & Options
Nifty July futures contract settled at 23,982.00, a discount of 14.25 points to the spot Nifty 50 close of 23,996.25, reflecting cautious positioning in the derivatives market ahead of next week's monthly expiry. In the cash market, the Nifty 50 declined 0.79% to close below the 24,000 mark at 23,996.25, as rising geopolitical tensions and higher global crude oil prices weighed on investor sentiment.

The NSE India VIX, which measures expected near-term market volatility, rose 5.49% to 13.29, indicating increased demand for hedging. Among stock futures, HDFC Bank, Infosys, and Eternal were the most actively traded contracts on the NSE. The July 2026 derivatives series will expire on 28 July 2026.

Bonds
Indian government bond yields rose as Brent crude oil climbed towards $95 a barrel, outweighing support from foreign portfolio investor buying. The yield on the benchmark 6.94%, 2036 bond ended at 6.8012%, compared with 6.7938% at the previous close. Bonds briefly recovered on buying by foreign portfolio investors, but surrendered those gains as crude oil prices extended their rally. Brent crude climbed towards $95 a barrel amid mounting concerns that the conflict in West Asia could spiral further and disrupt global oil supplies.

Reports suggesting a possible closure of the Red Sea shipping route added to fears of supply disruptions. The sharp rise in crude kept traders from building fresh long positions in gilts, limiting the appetite seen in early trade.

Forex
The Indian rupee fell 0.3% to 96.5650 per dollar today, nearing its all-time low of 96.96 hit in May, as Brent crude surged about 5% to above $95 a barrel on escalating hostilities between the United States and Iran and threats to shipping by Iran-backed Houthi forces in Yemen. Dollar sales by state-run banks helped limit the rupee's losses, but the currency remains vulnerable to a sustained rise in oil prices.

The rupee's weakness has come despite policy measures announced in June to support India's balance of payments for the fiscal year ending March 2027, with the RBI's package attracting more than $20 billion as of July 17.

Crypto
Crypto markets traded higher today with bitcoin trading near $66,043.30 today, up 0.79%, extending gains after five consecutive sessions of net inflows into US spot Bitcoin ETFs. The cryptocurrency's market capitalisation stood at $1.32 trillion, while 24-hour trading volume reached $30.92 billion. Traders now turn their attention to the Federal Reserve's upcoming policy meeting for the next market cue.

Ethereumtraded near $1,923.17 and was largely unchanged on the day, with a market capitalization of $232.09 billion and 24-hour trading volume of $12.65 billion. Hyperliquid outperformed the wider market, rising more than 6% on strong derivatives volume.

US Stock Futures
US stock futures moved lower early today as investors turned cautious ahead of a fresh batch of corporate earnings from major technology and industrial companies. Dow Jones Industrial Average futures dipped 24 points, or less than 0.1%, while S&P 500 futures fell 0.3% and Nasdaq-100 futures declined 0.7%.

Earnings will remain in focus, with ServiceNow, IBM, Tesla, Texas Instruments, Alphabet and AT&T scheduled to report. Investors will be watching for updates on AI spending, cloud demand, corporate technology budgets and companies' outlooks for the second half of the year, as strong demand for AI infrastructure and software continues to be tested against elevated technology-sector valuations.

US Treasury Notes
US Treasury note yields traded higher as global tensions continued to influence the bond market, with the benchmark 10-year yield hovering around 4.63%. The two-year, three-year and five-year yields stood at approximately 4.25%, 4.31% and 4.37%, respectively, as investors assessed the impact of geopolitical developments on the inflation outlook and the Federal Reserve's monetary policy path.

Geopolitical risks remained a key focus for Treasury investors, with markets monitoring developments for their potential impact on energy prices and inflation expectations. The outlook for Federal Reserve policy also remained central to the market, as investors weighed how changes in inflation and broader global conditions could influence the future path of interest rates.

Top News