Indian equity benchmarks traded in negative territory during the morning session on July 21, with the Sensex and Nifty slipping amid a combination of rising crude oil prices, foreign investor selling, technical resistance, and continued weakness in HDFC Bank shares.

At around 10:55 am, the Sensex was down 252.63 points, or 0.33 percent, at 77,455.89, while the Nifty 50 declined 63.90 points, or 0.26 percent, to 24,174.60. Market breadth remained largely balanced, with 1,729 stocks advancing, 1,725 declining, and 187 remaining unchanged.

Higher crude oil prices remained a key concern for investors. Brent crude hovered near 90 dollars per barrel as markets assessed reports of possible US-Iran diplomatic efforts alongside renewed attacks in the Middle East and threats by Yemen's Houthi group to blockade Saudi Arabia. As India is one of the world's largest crude oil importers, sustained higher oil prices could increase inflationary pressures, widen the trade deficit, and weigh on corporate profitability.

Market participants also remained cautious due to persistent geopolitical uncertainties. According to market experts, elevated energy prices and ongoing tensions in the Middle East have limited overall risk appetite, with investors awaiting greater clarity before increasing exposure to equities.

Foreign institutional investor activity also weighed on sentiment. Provisional exchange data showed that foreign portfolio investors were net sellers of Indian equities worth Rs 1,121 crore in the previous trading session. However, domestic institutional investors partially offset the selling by purchasing equities worth Rs 1,312 crore.

From a technical perspective, analysts believe the Nifty needs to decisively move above the 24,250 level to improve near-term sentiment. Holding above the 24,100 support zone could trigger a pullback toward 24,367, while a breakout above that level may open the path toward 24,450 and 24,530. Failure to sustain higher levels could extend the ongoing consolidation between 24,000 and 24,350, with immediate support seen in the 24,000 to 23,800 range.

HDFC Bank also remained under pressure after disappointing June quarter margin performance triggered heavy selling in the stock. The banking heavyweight declined around 1.3 percent during the session after falling more than 5 percent in the previous trading day, marking its sharpest single-day decline in nearly four months. Reports also indicated that the bank is awaiting an additional review by independent directors before recommending Chief Executive Officer Sashidhar Jagdishan's reappointment to the Reserve Bank of India.