Brent Rally Weighs on Equities, Earnings Take a Back Seat - Paper by Pocketful
Market Recap: 23rd July, 2026
Stock News Highlights
SRF (-8.53%): Shares were the day’s biggest loser after management warned that Q2 and Q3 earnings are expected to be weaker due to pricing and volume pressures, despite reporting a strong Q1 FY27. The company posted a 76% YoY rise in net profit to ₹759 crore, while revenue grew 32% YoY to ₹5,033 crore.
Hero MotoCorp (+3.67%): The stock contributed the most to today’s market gains after the company announced an additional ₹1,000 crore investment in Ather Energy, a ₹3,200 crore investment plan in Andhra Pradesh, launched India’s first 100cc flex-fuel motorcycles, and neared its ₹75 per share final dividend ex-date.
Adani Green Energy (-6.13%): Shares fell after the company said Q1 FY27 EBITDA was impacted by 5-7% due to power curtailment, while management expects the impact to normalize in the second half of FY27. The company reported a 19% YoY rise in net profit to ₹983 crore, while revenue from power supply increased 29% YoY to ₹4,280 crore.
Infosys (-0.XX%): Shares ended marginally lower amid broader market weakness despite the company reporting a 12% YoY rise in Q1 FY27 net profit to ₹7,769 crore and a 14% YoY increase in revenue to ₹48,211 crore. Investor sentiment remained cautious after the company trimmed the upper end of its FY27 revenue growth guidance to 3% from 3.5%.
Sectoral Performance
Nifty Auto (+0.70%): The index emerged as the day’s top-performing sector, extending its winning streak for a third consecutive session, supported by strong Q1 FY27 earnings, robust vehicle demand, and optimism around EV growth. Gains were led by Hero MotoCorp, Bajaj Auto, and Mahindra & Mahindra.
Nifty Media (+0.22%): The index ended marginally higher, despite broader market weakness. However, the rally lacked broad participation, with the sector ending the day with 3 gainers and 7 losers as investors remained cautious amid weak market sentiment.
Nifty Realty (-1.81%): The index declined for a second consecutive session as rising global crude oil prices and broader market weakness dampened investor sentiment. All 10 constituents ended in the red, reflecting broad-based selling across the real estate sector.
Nifty Commodities (-1.06%): The index declined as rising crude oil prices, weak market sentiment, and SRF’s sharp decline following a weaker Q2–Q3 outlook weighed on the sector. Losses were led by SRF, Reliance Industries, and Adani Green Energy.
Market Insights
Technical Level: Nifty opened with a gap-down and moved higher in the early session, facing immediate resistance around 23,990. Selling pressure intensified thereafter, dragging the index to a support near 23,810, where it consolidated for the remainder of the session and closed near that level, indicating continued weakness in market sentiment.
Advance-Decline Ratio: Market breadth remained weak, with 1,155 stocks advancing against 2,099 declining, indicating broad-based selling pressure across the market despite selective buying in a few counters.
The Big Picture: Middle East tensions escalated after Yemen’s Houthis claimed attacks on two Saudi oil tankers in the Red Sea, while the U.S. carried out its 12th consecutive night of strikes on Iran. The conflict fueled concerns over global oil supply disruptions, supporting higher crude prices and cautious investor sentiment.
FII/DII Activity (July 22, 2026): Both institutional investors remained net sellers during the session, with FIIs selling ₹819 crore and DIIs offloading ₹418 crore, reflecting continued cautious sentiment in the market.
Watch Out For Tomorrow
IPO Corner: Cube Highways trust InviT IPO Closing for subscription Tomorrow, making the key primary market offerings with good GMP.
Macro: Japan Inflation Rate YoY (Jun) & UK Retail Sales MoM (Jun) data scheduled for release tomorrow.
Market Watch: Crude oil dominated Thursday’s market as Brent climbed near $98, keeping investors focused on inflation and geopolitical risks rather than earnings. Despite strong Q1 results, SRF and Adani Green Energy declined sharply, while Hero MotoCorp bucked the trend on investment and dividend announcements. With Brent nearing $100, market sentiment remains cautious despite healthy corporate performance.
Word of the day
Risk-Off
Meaning: A market environment where investors avoid risky assets like stocks and shift toward safer investments such as gold, government bonds, or cash due to uncertainty.
Example: Rising crude oil prices and Middle East tensions triggered a risk-off sentiment, leading to broad-based selling in equities.