Market Open Report, July 21, 2026: Sensex, Nifty Open Marginally Lower on Tuesday; Iran War Escalates as Houthis Threaten Naval Blockade on Saudi Arabia

Mumbai, July 21: Indian equity indices opened lower on Tuesday morning and traded with a negative bias during the first hour of trading session on Tuesday, tracking losses in the discounted Gift Nifty amid sharp escalation in tensions in the Iran war theatre where Yemen’s Houthis on Monday threatened a naval blockade of Saudi Arabia.  

Sensex traded lower by 85.83 points or 0.11 per cent to 77,622.69 and Nifty50 was down 8.45 points or 0.03 per cent at 24,230.05 at 9.45 am. Both the indices are trading with a cautious tone on Tuesday morning as investors assess strong June- quarter earnings against rising geopolitical risk. 

Gainers & Losers 

Tech Mahindra (TECHM) was the top Nifty50 gainer at 9.45 am, jumping 1.65 per cent to LTP of Rs 1,602.40 from its previous close of Rs 1,576.40, followed by UltraTech Cement (ULTRACEMCO), up 1.43 per cent to Rs 12,073 from Rs 11,903. Shriram Finance (SHRIRAMFIN) was up 1.30 per cent to Rs 1,048.90 from Rs 1,035.40, Eicher Motors (EICHERMOT) rose 1.02 per cent to Rs 7,641 from Rs 7,563.50, and JSW Steel (JSWSTEEL) was up 0.95 per cent to Rs 1,269 from Rs 1,257, closing out the top-5 gainers on Nifty50. 

HDFC Bank (HDFCBANK) was the top loser on Nifty50 as of 9.46 am Tuesday, down 1.05 per cent to Rs 769.40 from its previous close of Rs 777.60, followed by Eternal (ETERNAL), which dipped 0.94 per cent to Rs 284.25 from Rs 286.95. Adani Ports and Special Economic Zone (ADANIPORTS) fell 0.52 per cent to Rs 1,834.40 from Rs 1,844, Cipla (CIPLA) was down 0.51 per cent to Rs 1,434.20 from Rs 1,441.60, and Sun Pharmaceutical Industries (SUNPHARMA) capped the top-5 losers on Nifty50, down 0.50 per cent to Rs 1,946.70 from Rs 1,956.40. 

Broad Markets & Sectoral Indices 

Among broader indices, Nifty Smallcap 50 and Smallcap 250 both rose 0.45 per cent each and Smallcap 100 added 0.44 per cent to lead the gains. Nifty 100, Nifty 200 and Next 50 underperformed the broader indices, rising 0.01 per cent, 0.06 per cent and 0.19 per cent, respectively. Nifty Cement was up 1.14 per cent, Chemicals advanced 0.96 per cent and Media rose 0.72 per cent to lead sectoral indices. Losers were led by Consumer Durables index, down 0.73 per cent followed by Pharma, down 0.27 per cent and Healthcare, which declined 0.21 per cent. 

Iran War 

Houthis declared a naval blockade of Saudi Arabia on Monday evening, opening another front in the war and raising concerns that threats to energy supplies may intensify beyond the Gulf. The move came after the U.S. suffered one of the deadliest weeks for its troops abroad with Pentagon announcing two more American soldiers killed in Friday’s attack on a Jordanian base and a fourth killed in northern Iraq days earlier. Iran’s Revolutionary Guards said on Monday tankers had been targeted in the Strait of Hormuz and it had struck US-linked “oil infrastructure” in Jordan, Kuwait and Syria. Tehran said it had received a mediator’s call for a 10-day ceasefire in Iraq, but U.S. Central Command confirmed another volley of strikes against Iranian cities on Monday. President Donald Trump warned Iran of “great and overwhelming” retaliation against every soldier killed. Diplomatic channels remained open however, with Iran’s Foreign Ministry saying it had received proposals from the mediator. 

Asian Markets on Tuesday Morning 

Asian indices were trading mixed on Tuesday morning tracking losses in the European and U.S. markets overnight as the Iran conflict continued to widen. Japanese markets bucked the trend with Nikkei 225 rallying over 1.5 per cent. Hong Kong’s Hang Seng and Malaysia’s KLCI slipped marginally while Shanghai dropped just under 1 per cent. Vietnam’s HNX 30 index was the region’s biggest loser, plunging over 4 per cent, while Indonesia and Thailand managed to eke out small gains. 

US Markets 

The Dow Jones Industrial Average closed deep in the red on Monday as concerns around the widening Iran conflict trumped quarterly earnings results and commentary from Fed officials. Dow shed 307.16 points or 0.59 per cent to finish at 51,839.26, S&P 500 traded with muted loss of 0.19 per cent to 7,443.28 and Nasdaq eased 0.05 per cent to 25,508.07. NYSE Composite index dropped 0.62 per cent and Canada’s benchmark TSX was down 0.86 per cent. 

Oil Prices 

Oil prices softened on Tuesday morning as potential mediation between the U.S. and Iran weighed against the Iran blockade threat from Yemen’s Houthis and reports of fresh Iranian strikes on U.S.-linked targets. Brent crude traded lower by 0.4 per cent to $88.87 per barrel while West Texas Intermediate was flat at $82.47 per barrel, both benchmark crude prices easing from their one-month highs on Monday. While analysts said Houthis threatened to disrupt exports from another major exporter in the region, a Reuters poll predicted draws to U.S. crude and gasoline inventories last week, which might have boosted prices. Tehran said it received a mediator’s proposal for a temporary ceasefire in Iraq on Monday that capped any upside in crude prices for now, traders said. 

Sensex & Nifty on Monday 

Indian equity benchmarks ended lower on Monday with Nifty dropping below the level of 24,250 as broad-based selling in private banks overpowered gains in energy, metal and pharma stocks. Sensex ended down 442.93 points or 0.57 per cent at 77,708.52 and Nifty50 declined 95.80 points or 0.39 per cent to settle at 24,238.50. On BSE, 2141 stocks advanced while 1944 declined and 229 remained unchanged showing overall positive market breadth despite headlined declines on benchmark indices. 

Sources

• nseindia.com
• bseindia.com