Indices drift lower in early trade; breadth negative

The key equity benchmarks traded with major losses in early trade on Monday as Brent crude oil surged above $90 per barrel amid escalating US-Iran tensions, raising concerns over inflation, higher import costs and global economic uncertainty. The Nifty traded below the 24,200 level. PSU Bank, media and pharma shares advanced while private bank, consumer durables and auto shares declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex, tanked 576.56 points or 0.74% to 77,574.89. The Nifty 50 index fell 148.35 points or 0.61% to 24,183.45.

In the broader market, the BSE 150 MidCap Index shed 0.24% and the BSE 250 SmallCap Index fell 0.31%.

 

The market breadth was negative. On the BSE, 1,264 shares rose and 1,434 shares fell. A total of 172 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, added 3.19% to 13.57.

Foreign portfolio investors (FPIs) sold shares worth Rs 376.41 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,017.89 crore in the Indian equity market on 17 July 2026, provisional data showed.

Parliament Monsoon Session 2026 begins today:

The Monsoon Session of Parliament will commence today and continue till 13 August 2026. The 25-day session will comprise 19 sittings, during which the government is expected to take up key legislative business and other parliamentary proceedings.

Economy:

Indias forex reserves jumped $964 million to $675.157 billion in the week ended July 10, the Reserve Bank said.

Foreign currency assets, a major component of the reserves, increased by $930 million to $546.508 billion, the central banks data showed.

The value of gold reserves increased by $24 million to $105.223 billion during the week, the RBI said. The Special Drawing Rights (SDRs) were up by $3 million at $18.626 billion, the apex bank said.

Indias reserve position with the IMF also increased by $7 million to $4.793 billion at the end of the reporting week, according to the RBIs data.

Stocks in Spotlight:

HDFC Bank fell 4.74%. The bank reported a 4.98% increase in standalone net profit to Rs 19,059.72 crore in Q1 FY27 as against Rs 18,155.21 crore posted in Q1 FY26. Total income declined 7.08% year on year (YoY) to Rs 92,184.38 crore in Q1 FY27 from Rs 99,200.03 crore in Q1 FY26.

ICICI Bank rose 0.76%. The banks standalone net profit rose 15.95% to Rs 14,804.50 crore in Q1 FY27 as against Rs 12,768.21 crore posted in Q1 FY26. Total income increased 5.43% year on year (YoY) to Rs 54,246.84 crore in Q1 FY27.

Numbers to Track:

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 96.4150 compared with its close of 96.3050 during the previous trading session.

MCX Gold futures for 5 August 2026 settlement rose 0.42% to Rs 1,41,481.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was shed 0.05% to 100.72.

The United States 10-year bond yield added 0.66% to 4.571.

In the commodities market, Brent crude for September 2026 settlement advanced $2.13 or 2.42% to $90.23 a barrel.

Global Markets:

Asian markets traded mixed on Monday as the escalating conflict in the Gulf lifted oil prices and fanned fears of inflation.

Brent crude climbed above $90 a barrel for the first time in more than a month as the U.S. military started a ninth straight day of attacks against Iran, which in turn struck targets across the region. Just a handful of ships transited the Strait of Hormuz on Sunday and one was reported to be on fire.

In the commodity market, the Brent duly added ??2.6% to $90.40 a barrel, while U.S. crude rose 2.3% to $84.39.

The jump in fuel costs has revived worries about inflation even as U.S. consumer price data surprised on the downside last week, leading futures markets to reportedly price in 29 basis points of Federal Reserve rate hikes by year-end.

Futures imply a 60% chance of a rate rise as early as September, pushing yields on 30-year Treasuries back above the psychological 5.0% barrier. This is a level that tends to attract funds away from equities and toward fixed income, while lifting the valuation bar for future corporate earnings.

Last week, stocks fell again on Friday, with Wall Street posting a weekly decline, as traders weighed the latest moves in semiconductor names along with recent quarterly reports.

The broad market index lost 1.01% to end at 7,457.69, while the Nasdaq Composite dropped 1.4% to 25,520.24 as tech stocks came under scrutiny. The Dow Jones Industrial Average fell 406.55 points, or 0.77%, to close at 52,146.42.

Alongside chips, shares of Netflix were a major laggard Friday, falling more than 7% as the companys forecast failed to ease investor concerns that growth is slowing.

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