Pre-Market Report: GIFT Nifty Hints at Positive Start Amid Global Tech Rebound

Global Market Cues

Overnight, Wall Street delivered a mixed performance as investors balanced "red-hot" inflation data against a strong rebound in technology shares. The Nasdaq Composite gained 1.2% to reach a record high of 26,402.34, buoyed by AI-driven momentum in stocks like Nvidia and Micron Technology. However, the Dow Jones Industrial Average slipped 0.14%, weighed down by concerns that the US Federal Reserve might keep interest rates higher for longer following a sharper-than-expected rise in producer prices.

• The S&P 500 edged 0.58% higher to close at a record 7,444.25.
• US 10-year Treasury yields remained elevated near 4.47% to 4.5%, reflecting structural inflation worries.
• Brent crude prices hovered around $106-$107 per barrel amid ongoing geopolitical tensions in West Asia and the Iran-Israel conflict.
• Asian markets are trading mostly higher this morning, with Japan’s Nikkei 225 and South Korea’s Kospi gaining between 0.3% and 0.6%.

GIFT Nifty and Domestic Cues

GIFT Nifty is currently trading at approximately 23,577, indicating a gap-up opening of about 65-75 points for the Nifty 50. In the previous session, Indian benchmarks snapped a four-day losing streak to end marginally in the green, with the Nifty closing at 23,412.60 and the Sensex at 74,608.98.

• FII & DII Activity: Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth ₹4,703 crore on May 13. Conversely, Domestic Institutional Investors (DIIs) provided strong support with net buying of ₹5,869 crore.
• Currency & Inflation: The Indian Rupee hit a fresh record low of 95.80 against the US Dollar, pressured by a strengthening greenback and high energy costs. Domestic retail inflation for April rose slightly to 3.48%, driven by jewellery and food prices.
• Gold Duty Impact: The recent hike in import duty on gold and silver to 15% is expected to keep jewellery stocks like Titan and Kalyan Jewellers under pressure.

Key Stocks in Focus

A heavy earnings calendar will dictate the direction of several blue-chip stocks today.

• Tata Motors & HAL: Both companies are scheduled to report their Q4 results today; investors will watch for margin guidance and order book updates.
• JSW Steel: Set to announce quarterly numbers between 2:00 PM and 3:30 PM, with a focus on demand cues and input cost management.
• Bharti Airtel: In focus following news regarding its Africa business and potential tariff hikes.
• Cipla: Likely to see continued momentum after reporting a strong set of numbers, despite a one-time PAT decline.
• InterGlobe Aviation (IndiGo): Highlighted by brokerages like Jefferies as a preferred stock due to shifting ownership from FPIs to DIIs.

Key Events to Watch Today

• US-China Summit: Markets are closely monitoring the high-stakes meeting between US President Donald Trump and Chinese President Xi Jinping in Beijing for any trade or geopolitical breakthroughs.
• Corporate Earnings: Over 50 companies, including Data Patterns, Siemens Energy, and Apollo Tyres, are slated to report their earnings.
• Oil Inventory Data: US crude oil stockpiles, which have declined for four consecutive weeks, will be a key trigger for global energy prices.

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

Tags: Pre-Market Stock Market Nifty Sensex Market Update