The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Friday as an overnight global market sell-off, rising geopolitical tensions in the Middle East, and a sharp surge in crude oil prices dampen investor sentiment and fuel inflation concerns.

Asian markets traded lower, while the US stock market closed sharply lower overnight, with the Nasdaq plunging more than 2% as a broad risk-off sentiment gripped global markets.

The Indian stock market extended its losing streak to a fourth straight session on Thursday as soaring crude oil prices, driven by the escalating Middle East conflict, weighed heavily on investor sentiment.

Domestic Market Recap

On Thursday, Indian indices ended in the red:

• Sensex slumped by 363.66 points (0.47%) to close at 76,391.39.
• Nifty 50 moved down by 126.65 points (0.53%) to settle at 23,869.60

Gift Nifty

Gift Nifty was trading near 23,705, around 169 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Overnight Wall Street Performance

The US stock market closed lower on Thursday, with the Nasdaq tumbling more than 2%, as rising Treasury yields fueled inflation concerns and triggered broad-based selling.

• The Dow Jones Industrial Average slumped by 506.93 points (0.97%) to close at 51,711.65.
• S&P 500 was down by 90.66 points (1.21%), ending at 7.408.30.
• The Nasdaq Composite was lower by 553.21 points (2.15%), finishing at 25,137.69.

Crude Oil Prices

• Brent crude slipped by 0.72% to $99.97/barrel
• US West Texas Intermediate (WTI) crude was trading 0.76% lower at $91.49/barrel

Overnight Major Global Events Driving Sentiment

1. US-Iran War: The US military completed its latest round of airstrikes on Iran, marking the 13th consecutive night of American attacks. According to the US Central Command, the latest operation lasted for more than two hours as Washington continued its military campaign in the region.
2. Trump Tariffs: The US announced new tariff rates of 10% and 12.5% on imports from several countries under Section 301, placing India in the lower 10% tariff bracket. The US Trade Representative (USTR) imposed tariffs on goods from 60 countries, citing inadequate efforts to prevent the import of products allegedly made using forced labour.
3. US Jobless Claims: Fewer Americans filed for unemployment benefits than expected last week, highlighting continued strength in the labour market. Initial jobless claims fell by 22,000 to a seasonally adjusted 187,000 for the week ended July 18, marking the lowest level since September 1969.

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