Indian Shares Fall at Pre-Open as Nifty, Sensex Stare at Negative Start Amid Weak Global Cues

Mumbai, July 8: Indian shares declined at pre-open on Wednesday as Asian shares traded cautiously after Wall Street weakness and oil prices jumped following renewed tensions in the Middle East.

Nifty 50 declined 0.5% and Sensex went down 0.4% at pre-open while Gift Nifty declined 0.6%.

To be sure, both benchmarks had snapped a four day winning streak to end lower yesterday.

IT stocks will remain in the spotlight as investors await TCS’ June-quarter earnings, which will kick off the earnings season on Thursday. Embassy Developments, a real estate developer, reported a sharp jump in June-quarter operational performance, with pre-sales soaring over fourfold year-on-year to Rs 868 crore, while collections rose 54% to Rs 496 crore.

HCLTech, an IT services company, said its subsidiary has completed the acquisition of Jaspersoft, integrating the business with its Actian data platform portfolio to strengthen its data analytics offerings. Orchid Pharma, a drugmaker, entered into a licensing agreement with Pharmasyntez to commercialise its antibiotic Exblifep in Russia, expanding the product’s international footprint.

As for global cues, Asian equities traded mixed on Wednesday, with Japan’s Nikkei 225 falling 0.7%, South Korea’s Kospi declining 2.2%, while Hong Kong’s Hang Seng gained 2%. The MSCI Asia Pacific ex-Japan index was up 0.6%.

Chipmakers remained under pressure despite Samsung Electronics reporting record quarterly profit. Investors remained unconvinced that robust earnings alone would justify elevated valuations across AI-linked semiconductor stocks. Samsung Electronics and SK Hynix declined in Seoul, extending weakness across the broader chip sector.

The pullback reflects growing investor concerns that the AI-driven rally may be losing momentum after months of outsized gains, prompting a shift away from richly valued technology stocks.

US equities closed lower overnight, led by losses in semiconductor stocks that dragged the technology-heavy Nasdaq Composite lower.

The Nasdaq was the biggest laggard among the three major US indices, while the S&P 500 and Dow Jones Industrial Average also ended in negative territory.

Chipmakers, including Micron Technology, came under renewed selling pressure as investors continued to trim positions in high-valuation AI plays. Traders also remained cautious ahead of the second-quarter earnings season, which is expected to provide fresh insights into corporate profitability and the broader health of the US economy.

European shares ended lower on Tuesday as weakness in technology stocks outweighed gains in defence companies.

Defence stocks remained in focus ahead of key NATO discussions on military spending, while investors also monitored developments in the Middle East. Technology shares mirrored the weakness on Wall Street as concerns over stretched AI valuations continued to weigh on sentiment.

Crude oil prices climbed after the US launched military strikes against Iran following attacks on commercial vessels near the Strait of Hormuz, a critical artery for global oil supplies.

The escalation heightened fears of supply disruptions, lifting Brent crude and adding another layer of uncertainty to global financial markets. Sustained strength in crude prices could put pressure on inflation, corporate margins and India’s external balances.

Source: Exchanges