- Sensex fell 0.62% to 76,988 and Nifty 50 dropped 0.57% to 24,048 on July 22
- Nifty Pharma declined 1.8%, with all 19 pharma stocks trading lower amid tariff fears
- US CENTCOM completed 11th night of strikes on Iran, targeting military and logistics sites
Stock Market Crash: Domestic equity benchmarks Sensex and Nifty 50 fell on Wednesday, July 22 in a broad-based sell-off as renewed geopolitical tensions pushed crude oil prices higher. The benchmark Nifty 50 fell 0.57% to 24,048, while the Sensex lost 0.62% to 76,988 intraday.
Nifty 50 fell as much as 0.74% to 24,008.20, while the Sensex declined as much as 0.80%, to 76,851, as of 10:10 am.
Barring Auto and Defence, all sectors are in red, with Nifty Pharma falling the most, down 1.8%, followed by PSU Bank, and Realty.
The broader market is facing pressure too, with the Nifty Smallcap 250 falling almost 1%, and the Nifty Midcap 150 dropping about 0.68%.
Here's three reasons why markets are crashing on Wednesday:
Fresh Strikes from US
US Central Command (CENTCOM) said it had completed its 11th consecutive night of strikes against Iran at 8:15 p.m. ET on Tuesday, as US Defence Secretary Pete Hegseth told the Senate that the American war effort against Tehran has now cost $37.5 billion.
CENTCOM said its forces had targeted Iranian military operations centres, maritime capabilities, aircraft hangars, drone storage facilities and military logistics infrastructure, aimed at further degrading Iran's capacity to threaten commercial shipping in the Strait of Hormuz.
The command said Iran had attacked more than 30 commercial vessels transiting the waterway over the past three months, describing the attacks as unwarranted and a threat to freedom of navigation. Despite this, CENTCOM said the Strait had remained open, with its forces having facilitated the transit of approximately 900 commercial vessels and 450 million barrels of crude oil since early May.
Crude Rises Again
International crude oil prices inched higher in early trading on Wednesday as fears of further supply disruptions intensified after US forces said it began striking Iranian military targets for the 11th straight night and Kuwait reported attacks by Iranian drones.
Brent crude futures rose 0.55%, or 50 cents, to $91.51 per barrel after markets opened on Wednesday, while US West Texas Intermediate crude climbed 0.36%, or 30 cents, to $84.64 in low volume trading.
This comes after oil settled at a five-week high on Tuesday after US forces struck targets in southern and western Iran, while Iran attacked US facilities in Bahrain, Kuwait and Jordan.
Pharma's Tariff Threat
Indian pharmaceutical stocks came under broad-based selling pressure on Tuesday after US President Donald Trump outlined a roadmap for tariffs on imported generic medicines, dragging every constituent of the Nifty Pharma index into negative territory.
The Nifty Pharma index was down 1.32% in early trade at 25,747.60, with all 19 constituents trading in the red as investors reassessed the potential long-term impact of higher US tariffs on Indian drug exporters.
Under the proposed framework, generic drugs imported into the US will continue to attract zero tariffs for the next two years. However, tariffs could rise to 100% in the third year and eventually 200% thereafter, with the administration aiming to incentivise pharmaceutical manufacturers to establish production facilities in the US.
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