Sensex, Nifty fall explained: What's weighing on Indian markets?

The equity benchmark indices extended its losing streak to a fourth consecutive session on Thursday (July 23), with the Sensex falling 394 points to 76,365 and the Nifty declining 127 points to 23,870.

Here's what drove the market lower:Financial stocks remained under pressure

Banks and financial stocks weighed on the benchmarks during the session, tracking moves in the rupee and bond yields. The Nifty Bank index fell 535 points to close at 56,592.

Broader market sentiment stayed weak

Market breadth favoured declines, with advancing stocks trailing losers by a ratio of 1:2. The Nifty Midcap index also declined 616 points to end at 61,685, indicating selling beyond the benchmark indices.

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Heavyweight stocks dragged the indices

Thirty of the 50 Nifty constituents ended the session in the red. Adani Enterprises, Nestle India and Shriram Finance were among the biggest losers.

Crude-sensitive sectors came under pressure

Higher crude oil prices weighed on oil marketing companies, paint makers and aviation stocks. IndiGo declined 2%, while HPCL also fell 2%.

Stock-specific moves remained in focus

SRF dropped 8% after stating that it expects the second and third quarters to be weaker than the first quarter.

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IndusInd Bank fell 6% despite reporting a healthy first-quarter performance, as cautious management commentary weighed on the stock. Petronet LNG declined 4% after QatarEnergy prepared to extend its liquefied natural gas (LNG) force majeure.

On the gaining side, two-wheeler stocks continued to outperform, with Bajaj Auto emerging as the top gainer on the Nifty. SBI Life Insurance rose nearly 3% ahead of its quarterly earnings. Ujjivan Small Finance Bank climbed more than 5% after raising its FY27 return on assets (RoA) guidance.

Oracle Financial Services Software ended flat following reports that Oracle Corporation may pare its stake in the company. Tips Music recovered Wednesday's losses to end 8% higher, while NTPC Green Energy gained 6% after its quarterly earnings.

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From the Sensex basket, Bajaj Auto Ltd, SBI Life Insurance Company Ltd, Mahindra & Mahindra Ltd, Eternal Ltd, Eicher Motors Ltd and Tata Consumer Products Ltd were the major gainers. Shriram Finance Ltd, Nestle India Ltd, Cipla Ltd, InterGlobe Aviation Ltd, Bajaj Finance Ltd and Grasim Industries Ltd were the biggest laggards.