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July 23 (Reuters) - Indian equities are likely to open lower on Thursday, as oil prices climbed past $95 a barrel after the U.S. launched fresh strikes on Iran and Yemen's Houthis targeted oil tankers in the Red Sea, hurting global risk appetite.
Higher oil prices pose a key risk for India, the world's third-largest crude importer and consumer, by stoking inflation, widening the trade gap, squeezing growth and corporate margins.
GIFT Nifty futures were at 23,864 as of 8:00 a.m. IST, indicating the benchmark Nifty 50 could open below Wednesday's close of 23,996.25.
Indian blue chips posted their biggest one-day loss in two weeks in the previous session. Foreign institutional investors sold shares worth 8.19 billion rupees, while domestic institutional investors sold 4.18 billion rupees, according to provisional data.
"Selling pressure has intensified as crude oil prices showed a renewed upward bias, with worries about higher inflation and widening deficits keeping sentiment bearish," said Ankur Punj, managing director and business head at Equirus Wealth.
While overall sentiment remains fragile, markets are likely to see sharp earnings-driven moves, analysts said.
Private lender IndusInd Bank could climb after quarterly profit exceeded expectations, helped by lower provisions.
Drugmaker Dr Reddy's could come under pressure after warning about semaglutide supply and missing quarterly profit expectations.
Oil marketing company Hindustan Petroleum posted its first quarterly loss since 2022, as surging crude weighed on profitability.
Nifty constituents Cipla, Infosys and InterGlobe Aviation report results later in the day.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Mrigank Dhaniwala)
