Pre-Market Report: Strong Gap-Up Expected Amid Record US Highs and Easing Oil Prices

Global Market Cues

The global backdrop for the Indian markets is predominantly positive as trading resumes after an extended weekend. On Friday, the S&P 500 and Nasdaq Composite hit fresh all-time highs, driven by stellar earnings from tech giants, particularly Apple, which announced a historic $100 billion buyback. While the Dow Jones Industrial Average saw a marginal dip of 0.3%, the broader market sentiment remains buoyed by the "AI capex" narrative and resilient US economic data, including a 2% GDP growth in Q1 2026.

A major relief for global markets comes from the energy sector. Brent crude prices have eased to approximately $108 per barrel, down from midweek highs of $114. This cooling follows reports of a peace proposal from Iran and US President Donald Trump’s announcement of "Project Freedom," a naval effort to guide merchant vessels through the Strait of Hormuz starting Monday morning.

GIFT Nifty and Domestic Cues

GIFT Nifty is currently signaling a strong start for the domestic indices. Trading at approximately 24,245, it indicates a gap-up opening of nearly 150 points over the Nifty 50’s previous close of 23,997.55 on April 30.

On the domestic front, the primary focus will be on the Assembly Election results for West Bengal, Tamil Nadu, Kerala, and Assam, which are being announced today. While global cues are positive, local volatility may spike as investors react to the political outcomes. Additionally, the Q4 earnings season is in full swing, providing plenty of stock-specific triggers.

Key Stocks in Focus

• Kotak Mahindra Bank: The lender reported a 13.3% year-on-year jump in net profit to ₹4,065.55 crore for the March quarter, with net interest income rising 8.1%.
• Avenue Supermarts (DMart): The company posted a strong 19% increase in consolidated net profit at ₹656.6 crore for Q4, driven by robust revenue growth.
• Adani Ports: Reported a 10% increase in Q4 profit, supported by a 26% rise in domestic port revenue and a massive 58% surge in international port revenue.
• Hindustan Unilever (HUL): Revenue from operations rose 8.13% YoY in Q4, led by a 6% growth in underlying volumes.
• Coal India: Shares may face pressure after the company reported a 9.7% drop in coal production for April, totaling 56.1 million tonnes.
• ICICI Bank & HCL Tech: Both stocks remain in the spotlight following strong quarterly performances and positive analyst outlooks.

Key Events to Watch Today

• Assembly Election Results: Counting of votes for five states/UTs will dictate the intraday trend and broader sentiment.
• US-Iran Geopolitical Developments: Market participants will monitor the implementation of "Project Freedom" in the Strait of Hormuz.
• Ongoing Q4 Earnings: A heavy calendar of corporate results will continue to drive individual stock movements throughout the session.

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

Tags: Pre-Market Stock Market Nifty Sensex Market Update