US-Iran tensions escalate; Sensex plunges 561 points, Nifty slips near 24,000
Investors suffered a major setback in the stock market on Tuesday, July 14. The Indian stock market remained under heavy pressure due to escalating tensions between the US and Iran, a sharp surge in crude oil prices, and weak global cues. After witnessing volatility throughout the day, the Sensex closed 561.46 points lower at 77,054.94, while the Nifty fell 158.95 points to settle at 24,052.05. The selling sentiment was so strong that the number of declining stocks on the NSE far exceeded the number of advancing ones.
The primary reason for the market decline was the rising tension between the US and Iran. The US carried out military action against Iran for the third consecutive night, while President Donald Trump signaled a move to further tighten restrictions on Iranian shipping. This heightened anxiety among global investors, an impact that was also reflected in the Indian market.
Rising Crude Oil Prices Add to Woes
Geopolitical tensions pushed Brent crude prices to $84.60 per barrel. Rising oil prices are expected to increase pressure on importing nations like India. Since costlier crude oil can drive up inflation and corporate operating costs, investors resorted to selling shares in the auto, banking, and finance sectors.
Sectors Witnessing the Sharpest Declines
In today’s trading session, the Nifty Realty index fell by 2%, PSU Bank by 1.8%, Auto by 1.6%, Bank by 1.1%, and the IT index by 1%. Midcap and smallcap stocks also faced pressure; the Nifty Midcap 100 closed nearly 0.4% lower, while the Smallcap 100 ended down by approximately 1%.
Stocks That Disappointed the Most
HCL Technologies, Shriram Finance, HDFC Life, Tata Motors, and InterGlobe Aviation were among the top losers on the Nifty. The decline in HCL Tech shares was driven by brokerage concerns regarding the company’s growth outlook. However, even amidst the market decline, stocks such as Bharti Airtel, Apollo Hospitals, Sun Pharma, TCS, and Dr. Reddy’s Laboratories showed resilience, offering some relief to investors.
Key factors to watch for the market ahead
Volatility in the stock market is likely to persist until US-Iran tensions ease and crude oil prices soften. Additionally, the performance of global markets, the activities of foreign investors, and oil prices will determine the direction of the Indian market in the coming days. For now, investors are advised to remain cautious and make investment decisions prudently.
