Why Is Share Market Falling Today, July 14? The domestic equity market extended its losses in early trade on Tuesday, with financial stocks witnessing broad-based selling amid weak global cues and rising
crude oil prices following fresh geopolitical tensions in West Asia.
At around 9:47 am, the BSE Sensex was trading at 77,142.17, down 474.23 points or 0.61%. The NSE Nifty 50 declined 135.45 points, or 0.56%, to 24,075.55.
Selling pressure remained broad-based across the market. The Nifty Bank fell 1.09%, Nifty Financial Services lost 1.21%, while the Nifty Next 50 slipped 0.85%. Midcap and smallcap indices also traded lower, with the Nifty Midcap 100 down 0.53% and Nifty Smallcap 100 falling 0.62%.
Among sectoral indices, Nifty Pharma emerged as the top gainer with a 0.77% rise, followed by Nifty Healthcare (+0.69%), Nifty Metal (+0.67%) and Nifty FMCG (+0.23%). On the other hand, Nifty Realty (-1.65%), Nifty Auto (-1.57%), Nifty Financial Services Ex-Bank (-1.49%), Nifty PSU Bank (-1.28%) and Nifty Private Bank (-1.03%) were the biggest losers.
Key factors behind market decline
Fresh US-Iran tensions: Investor sentiment remained under pressure after the US military carried out a third consecutive night of strikes on Iran. President Donald Trump also reinstated a blockade on Iranian shipping and proposed a 20% fee for protecting vessels passing through the Strait of Hormuz, raising fears of a further escalation in geopolitical tensions.
Surge in crude oil prices: Oil prices climbed sharply, with Brent crude briefly crossing the $85-a-barrel mark, its highest level since the US and Iran signed a memorandum of understanding to end the conflict on June 17. Renewed attacks in the Strait of Hormuz heightened concerns over potential disruptions to global energy supplies.
India VIX moves higher: Market volatility increased as the India VIX, often referred to as the fear gauge, climbed 3.84% to 13.79. The uptick reflected growing investor caution amid rising geopolitical risks and uncertainty in global markets.
Negative global cues: Asian equities declined sharply after US President Donald Trump said Washington was reinstating its blockade of Iranian shipping in the Gulf and would impose a 20% fee on cargo passing through the Strait of Hormuz, stoking concerns over global energy supplies. MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 1.7%, with Taiwan and South Korean equities leading losses. Japan’s Nikkei 225 slipped 0.8%, while S&P 500 futures eased 0.3%. Chinese markets were relatively resilient despite the broader weakness, with the CSI 300 down 0.4% after June export and import data exceeded market expectations.
Rupee Falls 49 Paise: The Indian rupee on Tuesday fell 49 paise to trade at 96.17 per US dollar in the morning session, after a third consecutive night of US strikes against Iran reinforced fears of the fragile ceasefire breaking down and fuelled a renewed rise in oil prices.
