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Informist, Thursday, Jul. 23, 2026

By Arundathi A R

MUMBAI – Indian equity indices are likely to extend losses for a fourth straight session Thursday as the US-Iran conflict continues and crude oil prices climbed to over $96 a barrel, their highest in six weeks. Analysts see the short-term trend for the Nifty 50 negative due to higher crude oil prices and the weakening Indian rupee. Investors are worried about global oil supply due to disruptions to key shipping routes. Shares of Infosys, Cipla, and InterGlobe Aviation will be in focus as they will announce their June quarter results later in the day.

The US military Wednesday announced it was conducting strikes for a 12th consecutive night against Iran as both sides largely targeted civilian infrastructure. According to US Central Command, the attacks were designed to "further degrade Iran's ability to threaten civilian mariners and commercial vessels transiting regional waters," the Associated Press reported. US President Donald Trump said the US will "destroy one bridge or power plant" every time Iran targets a ship transiting the Strait of Hormuz. 

The September futures contract of Brent crude oil was $96.43 a barrel, over 32% higher than its pre-war levels. "Rising crude prices have again become a pain point for Indian equities," Rupak De, senior technical analyst at LKP Securities, said. "As crude sustains above the 50 (day) EMA (exponential moving average), the Indian Nifty is set to break below the 50EMA. It looks like the Nifty and crude oil are again moving inversely to each other."

The July contract of the GIFT Nifty suggested a lower opening for the market Thursday. At 0739 IST, the GIFT Nifty was largely flat from 23880 Wednesday. This was down over 116 points from the Nifty 50's Wednesday close. "On the lower end, the fall might extend towards 23600-23700 if the Nifty falls below 23900. On the higher end, near-term resistance is seen at 24100," Rupak said. He expects the market to open lower and turn volatile, due to the expiry of the Sensex's weekly derivatives contract.

On the earnings front, Cipla is likely to post a sharp fall in its June quarter results due to lower contribution from its US business despite continued strength in its India business. The pharmaceutical major is likely to report an over 34% on-year fall in its bottom line at INR 8.52 billion for the June quarter, while its revenues are expected to rise marginally on year to INR 71.04 billion.

IndiGo airline operator InterGlobe Aviation is likely to report a sharp fall in its June quarter net profit on higher fuel costs due to the US-Iran war. The company is expected to report a net profit of INR 12.30 billion, down 43% on year. Its top line is likely to rise 18% on year to INR 242.64 billion.

Information technology colossus Infosys will also detail its June quarter earnings later in the day. Despite a rise in revenue, Infosys is expected to post a sequential decline in its consolidated net profit for the quarter, due to investments and acquisitions. Its consolidated net profit for the June quarter is expected to decline over 7% sequentially to INR 78.67 billion and revenue is likely to rise over 4% sequentially and nearly 15% on year to INR 484.45 billion.

Shares of Dr. Reddy's Laboratories will also be in the spotlight as the company announced its June-quarter results Wednesday after market hours. It reported a nearly 69% on-year fall in its consolidated net profit to INR 4.44 billion. Revenues were INR 81 billion, down 5.5% on year. Both the metrics of the company failed to meet the Street's view. Brokerages cut their target price on the stock and downgraded their recommendations.

Brokerage Emkay Global Financial Services trimmed Dr. Reddy's target price by 8% to INR 1,200 and retained a 'reduce' recommendation on the stock. Meanwhile, Nirmal Bang Institutional Equities downgraded the stock to 'sell' from 'hold' and cut its target price by 18%. The brokerage turned cautious on the stock after a disruption in the manufacturing of semaglutide. Nuvama also trimmed its target price on Dr. Reddy's by 7% to INR 1,365 and retained its 'buy' recommendation. The company's near-term growth depends on the resumption of semaglutide supply and the approval for Abatacept in the December quarter.

Market participants will closely watch foreign investment flows. Foreign institutional investors resumed their selling and net sold shares worth INR 8.19 billion Wednesday, while domestic investors also turned net sellers for the second session and offloaded shares worth INR 4.18 billion. 

Most Asian equity indices were higher in early trade, with South Korea's KOSPI, up nearly 2%, gaining the most. All three major US indices closed lower Wednesday as investors anticipated earnings of the first of the "Magnificent Seven" mega-cap companies and grappled with concerns over spending on artificial intelligence and rising oil prices.  End

US$1 = INR 96.565

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Himanshi Gupta

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