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Mumbai, 21 July. Weakness was seen in the Indian stock market during early trading on Tuesday (July 21). Despite buying by domestic institutional investors (DII), both Sensex and Nifty were seen trading in the red due to continuous selling by foreign institutional investors (FII) and pressure in banking stocks.

In early trade, BSE Sensex fell 58.89 points (0.08%) to 77,649.63, while NSE Nifty slipped 22.45 points to 24,216.05. Earlier on Monday too, a big fall was recorded in the market, when the Sensex closed down by 442 points and the Nifty closed down by around 96 points.

• There was maximum movement in these shares

HDFC Bank, Reliance Industries, Axis Bank, Sun Pharma and Maruti Suzuki were the biggest losers in the Sensex pack. Buying was seen in the shares of Tech Mahindra, UltraTech Cement, Asian Paints and HCL Tech, which provided some support to the market.
Major reasons for market decline

1. HDFC Bank’s weak quarterly results. Investor confidence has been affected due to HDFC Bank’s quarterly results being weaker than market expectations. Due to this, banking shares remained under pressure for the second consecutive day.
2. US-Iran Tension: The growing geopolitical tension between the US and Iran has weakened the risk-off sentiment in global markets. In such an environment, investors are turning towards safer investment options.
3. Selling by foreign investors: According to exchange data, on Monday, foreign institutional investors (FIIs) made a net sale of shares worth Rs 1,121.04 crore, which further increased the pressure on the market.

• Keeping an eye on crude oil and global market

Global oil benchmark Brent crude is trading 0.63% lower at $88.66 per barrel. However, experts say that due to US-Iran tension, there can be a sharp rise in crude oil prices at any time, which can affect India’s inflation and economy.

A mixed trend was seen in Asian markets. South Korea’s Kospi and Japan’s Nikkei were trading with gains, while the US stock markets closed with a decline on Monday.