Shares Fall at Pre-open Signalling Weak Start for Dalal Street as Trump Continues to Weigh 

Mumbai, May 20: Indian shares slid at pre-open suggesting a weak start for benchmark indices as fresh comments from U.S. President Donald Trump that United States would end the Iran war “very quickly” failed to reassure investors and oil prices continued to remain elevated.

Nifty 50 was down 0.7% at pre-open while the Sensex was down 0.6%.

Gift Nifty futures reinforced the pessimism trading at 23,406, which is way below Nifty’s previous close of 23,618.

Other economic indicators also signalled weakness as 30-year U.S. treasury yields scaled their highest levels since 2007.

Also, the spotlight will be falling on companies that have released earnings. Aluminium maker Hindalco Industries said its U.S.-based subsidiary Novelis reported a rise in operating profit and expects its Oswego plant to resume operations in the coming weeks. Zee Entertainment Enterprises posted a quarterly loss as advertisers tightened spending following the Middle East crisis, while higher expenses weighed on the broadcaster’s margins.

State-run fuel retailer Bharat Petroleum Corporation Limited reported a rise in adjusted March-quarter profit, supported by demand for fuel.

Oil prices edged lower after Trump said the United States would end the Iran war “very quickly”, raising hopes of progress in negotiations and reducing immediate concerns over prolonged supply disruptions in the Middle East. At the time of writing, oil had edged back up.

Investors across Asian markets remained worried about sticky inflation, elevated oil and global bond yields as well as ongoing geopolitical uncertainty.

Japan’s Nikkei dropped 1.3%, while Hong Kong’s Hang Seng fell 0.7%. South Korea’s Kospi tumbled 2.38%, and MSCI’s broadest index of Asia-Pacific shares outside Japan declined 0.87%.

Market participants also stayed cautious after Trump warned that the U.S. could resume military action if negotiations with Iran break down, keeping geopolitical risks firmly in focus.

U.S. equities ended lower overnight as rising Treasury yields and inflation concerns continued to weigh on technology and semiconductor stocks.

The Dow Jones Industrial Average fell more than 300 points, while the S&P 500 and Nasdaq also closed lower as investors reassessed expectations for Federal Reserve rate cuts. Economists now expect the Fed to keep interest rates unchanged through 2026 amid concerns that war-related energy inflation could keep price pressures elevated.

Technology shares globally remained under pressure as investors reduced exposure to high-growth sectors, fearing that elevated oil prices and geopolitical tensions may prolong inflationary risks. Rising U.S. bond yields further hurt appetite for risk assets.

European markets ended mixed but relatively resilient. Britain’s FTSE 100 inched higher after weak labour market data eased fears of further aggressive rate hikes from the Bank of England.

However, gains remained limited as investors continued to worry about inflation linked to energy prices and geopolitical tensions.

The softer UK jobs data improved sentiment toward rate-sensitive sectors, though central banks remain cautious about the broader inflation outlook and the impact of higher crude prices on consumer inflation.

Source:

• Exchanges