Indian markets open lower as crude, geopolitics weigh; all eyes on Infosys Q4 earnings

NEW DELHI: The Indian stock market opened in the red on Thursday, tracking a cautious mood across Asian peers as elevated crude oil prices and renewed US-Iran tensions dampened investor sentiment. The Nifty 50 slipped around 170 points to 24,200.70 in early deals, down 0.7 per cent, while the BSE Sensex shed over 600 points to hover around 77,850 points.

Most sectoral indices opened lower, with Nifty Auto and Nifty Consumer Durables among the worst hit. The subdued start comes despite record highs in Japan and South Korea, where markets rallied on Wall Street’s overnight gains after President Donald Trump extended the ceasefire with Iran.

Japan’s Nikkei 225 briefly touched an all-time intraday high of 60,013.98 before paring gains and declined 1.13 per cent lower on profit taking. South Korea’s Kospi also scaled a fresh peak of 6,538.72, advancing 1.58 per cent, while the small-cap Kosdaq rose 0.58 per cent. Both Indices lost early gains and fell around 1% each. Early gains were seen after data showed that South Korea’s economy grew 1.7 per cent in the January-March quarter, its fastest pace since December quarter of 2020.

During Thursday’s session, all eyes will be on the Nifty 50 heavyweight Infosys, which will announce its March quarter earnings later in the day. Investors will also watch results from mid- and small-cap names, including Union Bank of India, Adani Energy Solutions, Tata Capital LTM, Aditya Birla Sun Life AMC and Himadri Speciality Chemical for cues on sectoral momentum.

Ponmudi R, CEO of Enrich Money, noted that during Thursday’s trading session, Indian equities are likely to trade with a cautious undertone as geopolitical risks and oil volatility weigh on confidence. “Oil markets remain a key concern, with Brent crude once again breaching the $100 mark and trading in the $100-106 per barrel range”, he said.

The spike reflects stalled US-Iran negotiations and ongoing blockades on Iranian ports, raising fears of a supply disruption. As a major oil importer, India faces significant economic risks if prices stay elevated, though domestic fuel prices have so far been held steady.

Foreign investor flows have turned volatile amid the uncertainty. Both institutional segments were net sellers in the previous session, with FIIs pulling out around Rs 2,080 crore and DIIs offloading roughly Rs 1,050 crore, underscoring a risk-off stance, Ponmudi said, adding that global equities are trading with a mixed to cautious bias, and near-term market direction will remain largely news-driven until there is clarity on the geopolitical front.

Global cues remain mixed. S&P 500 futures slipped 0.1 per cent and Nasdaq 100 futures were flat in early trade, while Dow Jones Industrial Average futures fell 173 points, or 0.4 per cent. In Wednesday’s regular session, the S&P 500 gained 1.05 per cent to close at 7,137.90, and the Nasdaq Composite rose 1.64 per cent to a new intraday high of 24,657.57. The Dow advanced 340.65 points, or 0.69 per cent, to end at 49,490.03.

Oil prices eased slightly after the initial jump, with West Texas Intermediate trading 0.28 per cent lower at $89.42 per barrel and Brent crude down 0.29 per cent at $98.19 per barrel. Still, the elevated levels continue to weigh on sentiment, especially for emerging markets like India.

Investors will also watch for further developments on the U.S.-Iran front. For now, the bias remains cautious, with markets likely to stay range-bound until a clear trigger emerges on either geopolitical or earnings fronts. (ANI)