Indian Shares Set To Extend Losses On Tariff, Middle East Concerns

(RTTNews) - Indian shares look set to open lower on Friday as investors react to renewed Middle East tensions and Infosys's weak Q1 results.

The company trimmed its constant currency revenue forecast for financial year 2027 after reporting modest revenue growth for the first quarter.

Global bond yields surged on inflation fears and oil prices stormed back above $100 a barrel as the United States launched its 13th consecutive night of strikes on Iranian targets, and Tehran retaliated with missile attacks targeting neighboring Arab countries hosting U.S. military bases.

Iran said it targeted U.S. missile systems, weapons depots and fuel storage facilities in Jordan, along with American military positions in Kuwait.

Adding to investor anxiety, the Trump administration said that it would impose higher tariffs on goods from 60 trading partners, citing forced labor concerns. The tariffs would impact major economies like India, China and the European Union.

Benchmark indexes Sensex and Nifty fell around half a percent each on Thursday to extend losses for a fourth consecutive session as investors fretted about the potential impact of surging oil prices on inflation and the nation's current account deficit.

The rupee settled 20 paise lower at 96.73 against the greenback amid the worsening West Asia crisis.

Foreign institutional investors net sold shares worth Rs. 2,999.23 crore on Thursday, while domestic institutional investors net bought shares to the extent of Rs. 2,947.14 crore, according to provisional exchange data.

Asian markets were moving lower this morning despite Intel smashing Wall Street's targets for the second quarter.

The U.S. dollar strengthened against major currencies as rising oil prices and new trade tariffs fueled inflation concerns globally.

Gold was little changed at $4,046 an ounce after falling nearly 2 percent in the previous session.

Brent crude futures held above $100 a barrel and were on track for a weekly gain of almost 14 percent amid heightened fears of global supply disruptions.

Overnight, U.S. stocks fell sharply as AI-related concerns and surging oil prices amid escalating U.S-Iran tensions sapped investors' appetite for risk.

Both Tesla and Alphabet revealed aggressive AI capex plans, reviving concerns about heavy AI spending and lofty valuations.

Brent crude oil prices surged above $100 per barrel for the first time since May while the 10-year Treasury yield jumped to the highest level since January 2025 as clashes escalated over key shipping routes following Houthi attacks on Saudi tankers. U.S. President Doanld Trump threatened both Iran and Yemen's Houthi rebels with "major military punishment" after Houthis launched missile and drone strikes on oil tankers in the Red Sea to enforce a blockade on Saudi Arabia.

The tech-heavy Nasdaq Composite slumped 2.2 percent, the S&P 500 lost 1.2 percent and the Dow gave up 1 percent.

European stocks ended lower on Thursday as the European Central Bank left interest rates unchanged, but opened the door to another increase in September, saying it anticipates inflation will remain "well above target" until the first half of 2027.

The pan-European STOXX 600 fell 1.2 percent. The German DAX and France's CAC 40 tumbled around 1.6 percent each while the U.K.'s FTSE 100 shed 0.7 percent.