Indian Shares Decline At Pre-Open As Benchmarks Stare At Lower Start Amid Weak Global Cues

Mumbai, July 20: Indian shares declined at pre open signalling a negative start for benchmarks as oil boiled above $90 per barrel with Iran and US ramping up attacks on each other. 

Nifty 50 declined 0.3% at pre–open.  

Corporate earnings are set to dominate investor attention this week, with the June-quarter report cards of Reliance Industries and the country’s four largest private-sector banks expected to steer market sentiment. The companies released their results after Friday’s market close and over the weekend, leaving investors to react when trading resumes.  

Reliance Industries, led by billionaire Mukesh Ambani, reported June-quarter earnings that exceeded market expectations. 

ICICI Bank, India’s second-largest private-sector lender, also posted better-than-expected quarterly earnings.  

Kotak Mahindra Bank and Axis Bank also delivered stronger-than-expected June-quarter results, while HDFC Bank, the country’s largest private-sector lender, reported earnings that were broadly in line with analysts’ estimates. 

Asia Down 

Asian equities traded lower as higher energy prices and rising geopolitical risks dented risk appetite. Japan’s Nikkei 225 remained shut for a public holiday, while South Korea’s chip-heavy Kospi slumped nearly 3% after leveraged retail investors rushed to unwind positions. MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.3%. 

Sentiment remained fragile amid concerns over elevated valuations in technology stocks and the potential inflationary impact of higher oil prices. 

Wall Street Closes Lower 

U.S. stocks ended Friday’s session firmly in negative territory as a sell-off in technology shares continued to weigh on broader markets. 

The Dow Jones Industrial Average fell 0.77%, the S&P 500 declined 1.01%, while the Nasdaq Composite lost 1.40%. Semiconductor stocks bore the brunt of the selling as investors reassessed lofty artificial intelligence (AI)-driven growth expectations and spending projections. 

Streaming major Netflix also came under pressure after issuing a weaker-than-expected outlook, adding to the cautious mood on Wall Street. 

Oil Rally Rekindles Inflation Fears 

Crude oil remained a key concern for financial markets after Brent crude climbed above the $90-a-barrel mark for the first time in over a month. 

The rally followed an escalation in military action between the United States and Iran, fuelling concerns over potential supply disruptions through the Strait of Hormuz, a critical route for global crude shipments. 

The sharp rise in oil prices has reignited worries over inflation and raised the possibility that central banks, including the Reserve Bank of India, may have less room to ease monetary policy if energy costs remain elevated. 

For India, which relies heavily on imported crude, persistently high oil prices could weaken the rupee, widen the current account deficit and squeeze margins for fuel-intensive industries. 

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