Pre-Market Report: Gap-Down Expected as Middle East Tensions Reignite

Global Market Cues

Overnight, Wall Street indices reversed early gains to end lower as optimism over a potential peace deal in the Middle East faded. While the S&P 500 and Nasdaq initially touched fresh all-time highs, they closed in the red due to a volatile "yo-yo" in oil prices and profit-taking in semiconductor stocks. The Dow Jones fell 0.63%, the S&P 500 slipped 0.38%, and the Nasdaq Composite eased 0.13%.

In Asia this morning, markets are trading under pressure. Japan's Nikkei 225 is down 0.62% after hitting record highs yesterday, while South Korea's Kospi has tumbled 1.88% amid reports of an exchange of fire in the Strait of Hormuz.

• Dow Jones: 49,596.97 (-0.63%)
• S&P 500: 7,337.11 (-0.38%)
• Nasdaq: 25,806.20 (-0.13%)
• Brent Crude: $100.06 (+1.2% reclaiming the $100 level)
• US 10-Year Treasury Yield: 4.38%

GIFT Nifty and Domestic Cues

The GIFT Nifty is currently trading around the 24,282–24,299 range, indicating a gap-down start of approximately 40 to 80 points for the Nifty 50. Domestic sentiment remains cautious as Brent crude's move above $100 per barrel threatens to impact marketing margins for oil firms and increase inflationary pressure. On Thursday, FIIs remained net sellers (₹5,835 crore), while DIIs provided support with net purchases of ₹6,837 crore.

• GIFT Nifty: 24,299 (Down 83 points)
• Nifty 50 (Previous Close): 24,326.65
• FII Activity: Net Sellers of ₹5,834.90 crore
• DII Activity: Net Buyers of ₹6,836.87 crore

Key Stocks in Focus

The earnings season remains the primary domestic driver, with the country's largest lender heading today's results calendar.

• State Bank of India (SBI): Q4 results are expected around 1:53 PM IST; the board meets this morning to approve earnings and a potential dividend.
• Tata Consumer Products & Titan: Both heavyweights will report their quarterly results today, likely impacting their respective sectors.
• Oil Marketing Companies (BPCL, HPCL, IOC): Will be under pressure as Brent crude reclaims the $100/barrel mark.
• Kalyan Jewellers: Set to announce Q4 results with a focus on revenue growth and final dividend.
• Kotak Mahindra Bank: In focus after RBI approved its acquisition of 9.99% stakes in Federal Bank and AU Small Finance Bank.

Key Events to Watch Today

Investors will closely monitor geopolitical developments and major economic data releases from North America.

• US Labor Market Data: Release of Non-Farm Payrolls and the Unemployment Rate for April/May.
• Middle East Situation: Further updates on "Operation Epic Fury" and the status of shipping in the Strait of Hormuz.
• Q4 Earnings: Over 45 companies including Bank of Baroda, Bank of India, and Swiggy are scheduled to report today.

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

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