India's benchmark indices, the Sensex and Nifty 50, snapped their four-day winning streak on Tuesday, July 7, as fresh US-Iran tensions pushed crude oil prices higher and triggered profit booking across the market.
Key Highlights
- Sensex and Nifty ended their four-day winning streak as US-Iran tensions pushed crude prices higher.
- Investors lost over Rs 2 lakh crore as BSE market cap fell below Rs 480 lakh crore.
The Sensex dropped 104 points, or 0.13%, to close at 78,180.72, while the Nifty 50 shed 32 points, or 0.13%, to end at 24,398.70. Selling was broad-based, with the Nifty Midcap 100 and Smallcap 100 indices also ending lower, down 0.30% and 0.55%, respectively.
Investors Lose Over Rs 2 Lakh Crore in a Single Session
The overall market capitalization of BSE-listed firms fell to below Rs 480 lakh crore, down from Rs 482.3 lakh crore in the previous session - making investors poorer by more than Rs 2 lakh crore in a single day.
The decline came amid profit booking after fresh tensions between the US and Iran drove up oil prices, denting investor risk appetite. According to a report by Axios, Iran fired two missiles at commercial ships transiting the Strait of Hormuz on Monday night, with Washington likely to retaliate against Iranian targets. US President Donald Trump said Washington would either reach a deal with Tehran or "finish the job."
Brent crude rose over 1% to trade near $73 per barrel around 3:30 pm IST following reports of the attack on commercial ships.
Ajit Mishra, SVP-Research, Religare Broking said, "The market had drawn early support from strong quarterly business updates, continued FII buying, easing crude prices near $72 a barrel, and steady monsoon progress, with a rebound in IT stocks ahead of earnings season also lifting sentiment. However, he noted that mixed global cues and stock-specific volatility capped the upside and prompted profit booking after the recent rally."
Top Gainers and Losers
As many as 31 stocks ended lower in the Nifty 50. Trent was the top loser, falling 12% after its Q1FY27 business update missed expectations. Adani Enterprises, BEL, and Adani Ports also featured among the top losers. On the other hand, IT stocks — including HCL Tech, Tech Mahindra, and Infosys — emerged as the top gainers.
Sectoral Performance
Barring Nifty IT (up 2.43%), Consumer Durables (up 0.89%), and FMCG (up 0.06%), all sectoral indices ended lower. Nifty Realty fell 1.58%, Metal dropped 1.10%, and Pharma declined 0.73%, while Nifty Bank slipped 0.16%.
Also Read: Sensex Rises 521 Points while Nifty Ends at 24,430 on FII Buying
Nifty's Technical Outlook
Mishra said the Nifty may enter a phase of consolidation following its recent rebound, which would be healthy as long as it holds the 24,000-24,200 support zone. On the upside, 24,600 may act as immediate resistance, with a breakout above this level potentially paving the way toward 25,000.
Shrikant Chouhan, Head of Equity Research, Kotak Securities said, "24,300 will be a crucial support zone; a hold above this could see the market retest 24,500-24,550, while a break below could trigger a quick intraday dip toward 24,200–24,100."
