Autos Buck Broad Weakness As Financials, Pharma, Oil & Gas Stocks Weigh

Mumbai, July 23: Indian benchmark indices extended their losing streak to a fourth consecutive session on Thursday, with the Sensex falling 364 points and the Nifty ending below 23,900 as broad-based selling kept investors on the defensive. Rising crude oil prices, persistent geopolitical tensions and weak global cues weighed on sentiment, while gains in auto stocks and select heavyweight shares provided some respite. 

Sensex, Nifty Extend Losing Streak 

The Sensex ended 363.66 points, or 0.47%, lower at 76,391.39, while the Nifty declined 126.65 points, or 0.53%, to settle at 23,869.60. 

Market breadth remained weak, with 1,569 shares advancing against 2,479 declines, while 155 stocks ended unchanged. The Nifty midcap and smallcap indices each declined around 1%, pointing to broader risk aversion beyond the benchmark indices. 

The selloff came as investors remained cautious over the surge in crude oil prices and escalating geopolitical tensions, while the ongoing earnings season triggered sharp stock-specific moves. 

Auto Stocks Buck Broad Market Weakness 

The Nifty Auto index was the standout performer, rising 0.7% as investors bought select automobile stocks despite the broader market decline. 

Bajaj Auto, Mahindra & Mahindra, Hero MotoCorp and Eicher Motors were among the notable gainers, helping the sector outperform. The Nifty Media index was the only other major sectoral gauge to finish higher, gaining 0.22%. 

The relative strength in auto stocks provided some support to the benchmark indices, although the broader sectoral picture remained weak. 

Realty, Oil & Gas Stocks Among Biggest Laggards 

Selling was particularly intense in real estate stocks, with the Nifty Realty index plunging 1.8% to emerge as the worst-performing sectoral index. 

Oil and gas stocks also faced pressure, with the Nifty Oil & Gas index falling 1% as the rising conflict in the Middle East boiled oil prices above $98 a barrel. Hindustan Petroleum Corporation also slipped 2.5% following a weak quarterly performance. Chennai Petroleum Corporation also fell 2.9% after results. Reliance and BPCL also declined. 

Airlines mixed amid oil boil 

SpiceJet ignored oil boil and surged 10% following reports that the Adani Group could enter the airline business, triggering speculation about potential consolidation and acquisition activity in the sector. 

The stock also drew support from reports that a Gulf-based airline was conducting due diligence as part of a potential evaluation of an investment in the financially troubled carrier. 

The sharp move in SpiceJet came despite the broader weakness in the market, underscoring the heightened volatility in stocks driven by corporate developments and takeover speculation.  

InterGlobe Aviation, the parent of IndiGo, declined 1.8% ahead of their quarterly results later in the day. 

Financials Weigh 

Heavyweight Nifty Financial Services fell 0.7%. Bajaj Finance fell 2% and featured among the biggest Nifty losers, weighing on the benchmark. Shriram Finance fell 3%. Axis Bank and SBI also declined.  

IndusInd Bank plunged 6% as investors booked profits despite a sharp rise in June-quarter profit, aided by lower provisions. The stock had rallied strongly in the sessions leading up to its results. 

Pharma Stocks Slide On Weak Earnings 

Quarterly earnings also drove significant moves across individual stocks. Dr Reddy’s Laboratories fell 1.4%, while Cipla declined 1.6% after their results disappointed investors. Cipla’s U.S. business was hit by weaker sales of the generic version of Bristol Myers Squibb’s Revlimid after the drug lost market exclusivity. 

The company also faced supply disruptions of lanreotide, a medicine used to treat rare tumours, after the U.S. Food and Drug Administration inspected the facility of its sole supplier, temporarily affecting production. 

With earnings season gathering pace, stock-specific volatility is likely to remain elevated. Investors will also closely track crude prices, developments in the Middle East, foreign fund flows and the rupee. For now, the fourth consecutive session of losses and broad weakness across midcaps, smallcaps and most sectors suggest that risk appetite remains fragile. 

Source

• NSE