Indian Shares Fall At Pre-Open As Benchmarks Stare At Weak Start As Oil Tops $100 On Middle East Conflict

Mumbai, July 24: Indian shares fell at pre open signalling a weak start for benchmarks as oil boiled above $100 per barrel amid the war in Middle East and weaker-than-expected earnings from Infosys and IndiGo loomed. 

Nifty 50 declined 0.9% and Sensex fell 0.7% at pre open while Gift Nifty went down 0.9%.  

The Trump administration is set to introduce new tariffs of 10% to 12.5% on imports from 60 trading partners, including India and the European Union, on Friday. The move comes as a temporary 10% global tariff is due to expire.  

Infosys will be in focus after the IT major appointed company veteran Ashiss Kumar Dash as its next CEO and trimmed its FY27 revenue growth outlook.  

Airline IndiGo, meanwhile, expects capacity growth to remain broadly flat in the current quarter after reporting a loss, as higher fuel costs and disruptions linked to the Middle East conflict weigh on its operations. 

Asian Markets Fall As Oil Surge Revives Inflation Fears 

Asian equities fell sharply on Friday, tracking overnight losses on Wall Street and in Europe, as a spike in oil prices fuelled inflation worries and renewed concerns over the outlook for interest rates. 

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1%, while Japan’s Nikkei dropped 2.8% and South Korea’s KOSPI plunged 4.8%. 

The weakness came as renewed tensions in the Middle East disrupted key oil shipping routes, raising concerns that energy prices could remain elevated for an extended period. 

The surge in crude prices is particularly negative for major oil-importing economies such as India, where higher energy costs can put pressure on inflation, the current account deficit and the rupee. A sustained rise in oil prices could also complicate the monetary policy outlook and raise input costs for several industries. 

Wall Street Slides As Big Tech Results Rekindle AI Spending Concerns 

The global risk-off mood was reinforced by a sharp decline on Wall Street. The Nasdaq Composite fell more than 2%, while the S&P 500 declined over 1% as investors reassessed the outlook for technology companies following quarterly results from major firms. 

Concerns over the scale of spending on artificial intelligence infrastructure resurfaced after results from Alphabet and Tesla, with investors questioning whether massive AI-related capital expenditure will generate adequate returns and cash flows. 

Tesla shares plunged 14.5% after the electric vehicle maker reported its first negative free cash flow in more than two years. Alphabet also came under pressure as investors focused on its elevated AI-related capital expenditure plans. 

The technology-led selloff spread across the broader market, although strong results and outlook upgrades from defence companies such as Lockheed Martin and RTX provided some support. 

The surge in oil prices also pushed U.S. Treasury yields higher, adding to concerns that renewed inflationary pressures could limit the scope for monetary easing. The 10-year Treasury yield climbed to its highest level since early 2025 as investors assessed the implications of higher energy costs. 

European Shares Fall As Oil Surge, Rate Concerns Weigh 

European equities also came under pressure, with the pan-European STOXX 600 falling 1.3% as the oil price surge and concerns over the interest rate outlook weighed on investor sentiment. 

While the European Central Bank left interest rates unchanged on Thursday, comments from President Christine Lagarde were interpreted by markets as signalling the possibility of a rate hike in September, adding to pressure on equities. 

Source

•  Exchanges