Pre-Market Report: Weak Start Likely as Global Ceasefire Optimism Fades

Global Market Cues

The global market sentiment has turned cautious after a wave of euphoria on Wednesday. While Wall Street ended the previous session with massive gains—the Dow Jones Industrial Average surged 2.85%, the S&P 500 rose 2.51%, and the Nasdaq Composite climbed 2.8%—the momentum has stalled in Asia.

On Thursday morning, Asian markets are trading in the red. South Korea’s KOSPI fell 1.43%, Japan’s Nikkei 225 declined 0.71%, and Hong Kong’s Hang Seng dropped 0.88%. This shift comes as reports emerge of potential violations of the two-week ceasefire agreement between the US and Iran. Crude oil prices have also seen a slight rebound, with Brent crude trading near $97–$98 per barrel, adding to the pressure on energy-sensitive markets like India.

GIFT Nifty and Domestic Cues

GIFT Nifty is currently signaling a weak start for the Indian indices. As of 7:45 AM, GIFT Nifty was trading around the 23,994 level, indicating a discount of approximately 50 to 100 points compared to the Nifty 50's previous close.

On Wednesday, the domestic market posted its best single-day performance in nearly a year, with the Sensex rallying over 2,900 points (3.95%) and the Nifty 50 surging 3.78% to close just shy of the 24,000 mark. The rally was fueled by the initial ceasefire news and the Reserve Bank of India’s (RBI) decision to maintain the repo rate at 5.25%. However, technical analysts suggest a period of consolidation or a brief pause is likely today after such an aggressive upward move.

Key Stocks in Focus

• TCS: The IT major remains in focus following dividend announcements and sector-wide relief after global volatility eased.
• Bosch: The company is set to acquire Bosch Chassis Systems India for ₹9,069 crore, making it a wholly-owned subsidiary.
• NHPC: Secured a significant work order from NHAI for toll collection and facility maintenance.
• Info Edge: Reported a strong Q4 business update with its Jeevansathi business growing 20.9% YoY and Recruitment Solutions up 9.5%.
• Lupin: Received US FDA approval for its Dapagliflozin and Metformin tablets.
• Signature Global: Reported a 5% YoY dip in pre-sales value for Q3, which may impact near-term sentiment for the stock.
• ITC Hotels & KEC International: Both are identified as key stocks to watch due to recent corporate developments and sector momentum.

Key Events to Watch Today

• US Economic Data: Investors will closely monitor the release of the Core PCE Price Index, Initial Jobless Claims, and GDP figures from the US, which will influence Fed rate expectations.
• Geopolitical Updates: Any further news regarding the US-Iran ceasefire and the status of the Strait of Hormuz will be the primary driver of market volatility.
• FII/DII Activity: After heavy selling by FIIs earlier in the week, their stance following Wednesday's rally will be crucial for sustaining the 24,000 level on the Nifty.

TAGS: Pre-Market, Stock Market, Nifty, Sensex, Market Update

Tags: Pre-Market Stock Market Nifty Sensex Market Update