Pre-Open Softness Signals Weak Start for Markets as Infosys Outlook and Oil Weigh on Sentiment 

Mumbai, April 24: The Nifty and Sensex edged lower in the pre-open session on Friday, dipping 0.21 and 0.18 per cent respectively, signalling a soft start for Indian markets which have already seen two consecutive sessions of decline triggered largely by a spike in oil prices amid escalating unrest in the Middle East. 

Investors were hoping for a rebound at the open after recent caution. But the pre-open softness comes as no relief for investors, who have been grappling with volatile global cues and the inflationary implications of surging crude prices. 

Elevated oil prices continue to cast a long shadow over sentiment, particularly for an import-heavy economy like India. Any sustained rally in crude could keep gains in check, especially in sectors sensitive to input costs such as paints, aviation and oil marketing companies. 

To be sure, markets will also have to contend with stock-specific pressures, particularly in the IT pack. Infosys, the country’s second-largest software services exporter, flagged a weaker-than-expected revenue outlook while announcing its earnings, raising concerns about demand softness in key global markets. The cautious guidance could weigh on IT stocks and cap broader upside, especially given the sector’s heavy weightage in benchmark indices. 

Meanwhile, external cues remain mixed but not entirely unsupportive. Asian markets traded with a mild positive bias in early deals, attempting to stabilise after recent volatility, while European markets closed higher overnight, offering a cushion to global sentiment. Wall Street, however, ended on a subdued note, reflecting lingering unease around geopolitical tensions and their impact on energy markets. 

Back home, Gift Nifty futures was slightly out of tune with pre-open signal as the index rose 81 points. 

In essence, the opening bell may whisper and not ring as the market remains on a tentative footing. Investors are likely to stay war amid cautious outlook by Infosys and rising oil prices. Going ahead, the markets may bounce or fade further depending on oil prices and headlines from the geopolitical front. 

Source:

• Exchanges