Stock market fall: SENSEX declines over 800 points, NIFTY50 slips below 24,000; key factors why stocks tumbled today

Equity indices NIFTY50 and BSE SENSEX witnessed a sharp decline on Wednesday, July 22, for the third consecutive trading session as investors focused on elevated oil prices at $95 per barrel, weaker Indian currency, and continued attacks between the United States and Iran, among other key factors.

The benchmark NIFTY50 index dropped 0.93% or 226 points, to an intraday low of 23,961.40 points during Wednesday’s stock market session, compared to 24,187.70 points at the previous market close, as per NSE data.

Meanwhile, the BSE SENSEX lost 1.06% or 828.92 points, dropping to an intraday low of 76,641.19 points on July 22, compared to 77,470.11 points at the previous stock market close.

At 2:16 pm, NIFTY50 was trading 0.85% lower at 23,981.50 points on July 22, while the SENSEX was trading 0.98% lower at 76,714.22 points, as per the exchange data.

Why are stock markets down today?

Crude oil near $95/bbl

After 11th rounds of US attacks against Iran, the fears of a second round of potential global oil supply chain disruption weighed down market sentiment among investors, in turn fuelling oil prices to a recent high near $95 per barrel (bbl) on Wednesday.

Investing.com data showed that the global benchmark, Brent crude oil prices, surged 4.1% to its intraday high of $94.75 per bbl on July 22, compared to $91.01 per bbl at the previous commodity market close.

At 1:49 pm, Brent crude prices were trading 3.12% higher at $93.86 per bbl on Wednesday’s market, when compared to the previous market close.

An official statement from US Central Command said that the American forces completed their 11th consecutive strategic attack against Iranian targets on Tuesday evening in an effort to degrade Iran's ability to threaten commercial shipping in the Strait of Hormuz.

Weak Indian rupee

The weaker strength of the Indian rupee further impacted investors’ sentiment on the Indian stock market, as the domestic currency lost 0.46% of its value, dropping to 96.673 against the benchmark US dollar, compared to the previous currency market close.

The Indian rupee closed at 96.23 against the US greenback after the previous trading session on Tuesday.

The Indian currency witnessed pressure from global market investors as buyers shifted their investments into safe-haven assets like the US dollar, in turn increasing the currency’s demand in the market amid the geopolitical crisis.

In situations of market volatility and risk, investors tend to shift their investments to safer bets to hedge their losses against the market situation.

Bloomberg US dollar spot index data showed that the US greenback was trading 0.02% lower at 101.151 as of 4:16 am (ET) in the United States on Wednesday, compared to its previous currency market close.

India VIX up 6%

India’s equity market volatility index, India VIX, surged around 6% to a day’s high of 13.36 during Wednesday’s trading session as investors remained cautious while monitoring the global market cues and the developments in West Asia.

The VIX index acts as a “fear gauge” for the markets, reflecting that investors are outlining a path of rising uncertainty in the equity markets.

Key focus will continue to remain on monitoring the attacks in West Asia, as no signs of a final peace deal within the 60-day period are visible ahead, further increasing the risk sentiment in the market.

Banking stocks

Investors were also on a selling spree, shedding investments from the banking and financial services stocks, while some book their profits as others focus on the management outlook and financial performance amid Q1 earnings season.

Index heavyweight stocks like HDFC Bank, State Bank of India, Jio Financial Services, Kotak Mahindra Bank, Axis Bank, Bajaj Finserv, and ICICI Bank were among other companies dragging down the benchmark indices on July 22.

Trump tariff shock on pharma stocks

The equity market sentiment on Wednesday was further impacted after US President Donald Trump proposed up to 200% tariffs on all generic drug imports into the United States following a two-year tariff-free period.

“Effective August 1, 2026, all Generic Drugs being brought into the United States will continue to have a tariff of zero per cent for a two-year period of time, after which the tariff will be raised to 100% for a one-year period of time, and 200% thereafter,” said Donald Trump in his post on Truth Social.

Trump’s move is aimed to ‘reshore’ generic pharmaceutical production in the United States, with penalties for companies which decide to not build plant and equipments in the country within a specific time period.