Why Is Share Market Falling Today? Know Key Reasons Behind Sensex and Nifty Decline on July 20

Why Is Share Market Falling Today, July 20? The domestic equity markets traded lower on Monday, with the BSE Sensex falling over 540 points and the NSE Nifty slipping below the 24,200 mark. However, buying in mid- and small-cap shares, along with strength in metals, PSU banks and pharma stocks, helped the broader market outperform.

At around 10:15 am, the BSE Sensex was trading 517.30 points, or 0.66%, lower at 77,634.15, while the NSE Nifty 50 declined 115.20 points, or 0.47%, to 24,219.10.

Financial stocks remained the biggest drag on the market. The Nifty Bank index slipped 1.28%, while the Nifty Private Bank index tumbled 2.30%. The Nifty Financial Services index was also down 1.46%, reflecting continued pressure on large private lenders.

Factors Behind Stock Market Fall Today

Market heavyweights down today: HDFC Bank accounted for the bulk of Nifty’s losses in early trade, with its around 5% decline emerging as the biggest drag on the benchmark. Out of the 115-point decline in Nifty as of 10:15 am, HDFC Bank alone contributed a fall of 114 points.

HDFC Bank remained the worst performer among the Nifty heavyweights, falling 4.22%, while Axis Bank declined 4.78%. Kotak Mahindra Bank lost 2.77%, followed by IndiGo (-1.63%), Maruti Suzuki (-1.29%) and Bajaj Finance (-1.07%).

Axis Bank also tumbled close to 5 per cent as investors overlooked its 23 per cent growth in profit and instead focused on margin compression. Kotak Mahindra Bank declined around 3 per cent after reporting a sequential moderation in NIMs despite healthy earnings growth.

Oil prices surge: Brent crude rose 2.6% to $90.40 per barrel, while US West Texas Intermediate crude gained 2.3% to $84.39.

India VIX rises: The India VIX, often referred to as the market’s fear gauge, rose 3.04% to 13.55, indicating elevated volatility.

US-Iran war: The geopolitical tensions in West Asia remain elevated. The US military conducted its ninth straight night of strikes against Iranian targets, following a sustained escalation in the region. US Central Command (CENTCOM) stated that the operations targeted “Iranian military command centres, air defence and coastal surveillance sites, maritime capabilities, missile and drone launch sites, and communications networks”.