Autos Decline On Elevated Oil As IT Tries To Cushion Fall

Mumbai, July 24: Indian equity benchmarks ended lower for a fifth consecutive session on Friday, as elevated crude oil prices, geopolitical tensions linked to the Iran conflict and stock-specific selling kept investors cautious. The Sensex fell 331.62 points, or 0.43%, to close at 76,059.77, while the Nifty 50 declined 102.15 points, or 0.43%, to settle at 23,767.45. The Nifty slipped below the 23,800 mark, with weakness in auto, metal and energy stocks outweighing gains in information technology and media shares. 

Auto Stocks Lead Sectoral Decline 

The Nifty Auto index was the worst-performing sector on Friday, falling 1.10%, as investors remained wary of the impact of elevated crude prices on input costs and demand. The sector also faced pressure from stock-specific selling. Mahindra & Mahindra fell 2%. Hero MotoCorp declined 1.7%. Bajaj Auto fell 1.4%.  

The weakness in auto-related counters came against a backdrop of rising oil prices, which could increase transportation and operating costs across the economy. 

InterGlobe Aviation fell 0.8% after the airline reported a June-quarter loss, with higher fuel costs and uncertainty linked to the Middle East conflict weighing on its performance. The stock’s decline highlighted the sensitivity of fuel-intensive businesses to the sharp rise in crude prices. 

Metal, Energy Stocks Also Under Pressure 

The selloff extended to metal and energy stocks, with the Nifty Metal index falling 0.55% and the Nifty Energy index declining 0.57%. 

The Nifty Oil & Gas index also slipped 0.46% as investors assessed the impact of higher crude prices on different parts of the energy value chain. While elevated oil prices can benefit upstream producers through higher realisations, they can put pressure on downstream businesses and the broader economy. 

Oil-sensitive sectors remained in focus as Brent crude prices moved above $100 a barrel amid escalating tensions in the Middle East. For India, a major crude importer, sustained higher oil prices could increase import costs, widen the trade deficit and put pressure on the rupee. 

The Nifty Realty index declined 0.55%, while the Nifty Pharma and Nifty Infra indices each eased 0.4%. 

IT Stocks Buck Market Weakness 

Information technology stocks emerged as a key area of strength, with the Nifty IT index gaining 0.8%. HCL Technologies and Wipro were among the top Nifty gainers, providing support to the benchmark indices. 

The sector’s gains came despite Infosys declining 0.6% after its latest quarterly results and revenue outlook disappointed investors. The contrasting performance within the IT sector reflected stock-specific reactions to earnings and management commentary. 

Investors continued to focus on the ongoing earnings season, with quarterly results and forward guidance driving significant moves in individual stocks. The IT sector’s overall gains helped offset weakness elsewhere in the market. 

Media, PSU Banks Outperform 

The Nifty Media index jumped 1.9%, making it the best-performing sectoral index on Friday. The gains stood out against the broader cautious sentiment and helped limit the decline in the headline indices. Gains on the index were led by PVR INOX which jumped 5.6% after rising yesterday as well on the multiplex operator swinging to profit. Multibagger Tips Music also extended its climb from yesterday after results and announcing a meeting to consider a buyback. Zee Entertainment Enterprises also rose 2%. 

The Nifty PSU Bank index rose 0.6%, while the Nifty Bank index edged up 0.18%, indicating selective buying in financial stocks even as the broader market remained under pressure. Bank of Maharashtra led the gains on the PSU Bank index with a 3.2% rise. 

The divergence across sectors underscored the stock-specific nature of trading, with investors rotating towards companies seen as relatively better positioned amid heightened global uncertainty. 

Broader Market Recovers From Lows 

The broader market showed resilience, recovering from intraday lows even as the benchmark indices remained in negative territory. Around 2,050 stocks advanced on the NSE, while 1,961 declined and 196 remained unchanged, pointing to mixed market breadth. 

The Nifty Midcap 100 ended flat, while the Nifty Smallcap 100 declined 0.3%, suggesting that the broader market was relatively more resilient than the headline indices. 

Investors will now track crude oil prices, developments in the Iran conflict, the rupee and foreign fund flows for further direction. The earnings season will also remain a key trigger for stock-specific action. 

Overall, the Sensex and Nifty extended their losing streak to five sessions, with losses in auto, metal and energy stocks outweighing gains in IT and media shares. Elevated oil prices and geopolitical risks remain key concerns for the market, while the Nifty’s close below 23,800 is likely to keep investors cautious in the near term. 

Source

• NSE