Pre-Market Report: Positive Opening Likely as GIFT Nifty Signals Recovery

Global Market Cues

The global market setup remains mixed as investors weigh resilient corporate earnings against rising energy costs. On Thursday, Wall Street indices retreated from their recent record highs; while the Dow Jones managed a gain of 0.69%, the S&P 500 and Nasdaq Composite slipped by 0.62% and 1.6% respectively. The pullback was primarily driven by a spike in U.S. Treasury yields and a lack of definitive progress in U.S.-Iran negotiations, despite a three-week extension of the Israel-Lebanon ceasefire.

Asian markets are trading on a mixed note this morning. Japan's Nikkei 225 edged up by 0.71%, supported by technology gains, while South Korea's Kospi saw a marginal decline. Crude oil remains a major pain point for emerging markets like India, with Brent crude hovering around $106.50 per barrel due to supply disruption concerns in the Strait of Hormuz.

GIFT Nifty and Domestic Cues

GIFT Nifty is currently trading at 24,236, indicating a gap-up opening of approximately 100-110 points for the Nifty 50. This comes after a sharp sell-off on Thursday where the Sensex tumbled 852 points to close at 77,664.

On the domestic front, the Indian Rupee remains under pressure, having settled at a record low of 94.01 against the US Dollar. India VIX, the market's fear gauge, rose to 18.59, suggesting that intraday volatility could remain high. Institutional activity shows continued pressure as FIIs remained net sellers in the previous session.

Key Stocks in Focus

• Reliance Industries: The oil-to-telecom major is scheduled to announce its Q4 and full-year results today. Markets will closely watch for updates on retail and Jio's performance.
• Infosys: The IT giant reported a strong Q4 net profit growth of 27.8% QoQ to ₹8,501 crore and announced a final dividend of ₹25 per share. The stock will react to these numbers today.
• IndusInd Bank: The private lender is set to report its quarterly earnings today; credit growth and asset quality will be key monitorables.
• Vedanta: The company has announced the record date for its demerger, where shareholders will receive shares in new entities on a 1:1 basis.
• Adani Energy Solutions: Reported a 5.7% rise in Q4 net profit to ₹684 crore, though EBITDA margins saw a contraction.
• Solar Sector Stocks: Companies like Tata Power and Adani Solar may see impact following the U.S. Commerce Department's announcement of preliminary anti-dumping duties on solar imports from India.

Key Events to Watch Today

• Major Q4 Earnings: Reliance Industries, IndusInd Bank, Hindustan Zinc, Shriram Finance, Adani Green Energy, and Lodha Developers.
• Geopolitical Updates: Continued monitoring of the U.S.-Iran standoff and shipping stability in the Strait of Hormuz.
• Forex Reserves: The RBI is expected to release the weekly Foreign Exchange Reserves data later today.
• Diplomatic Moves: External Affairs Minister S. Jaishankar’s visit to the UAE remains in focus for energy security discussions.

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

Tags: Pre-Market Stock Market Nifty Sensex Market Update