Pre-Market Report: GIFT Nifty Signals Positive Start Amid Record US Gains

Global Market Cues

Overnight, the US markets witnessed a historic session as the Dow Jones Industrial Average crossed the 50,000 milestone for the first time, closing at 50,285.66, up 0.55%. The S&P 500 and Nasdaq Composite also ended in the green, gaining 0.17% and 0.09% respectively, fueled by Nvidia’s stellar Q1 FY27 earnings beat and optimism surrounding potential diplomatic progress between the US and Iran.

In Asia, markets opened on a firm note this morning. Japan's Nikkei 225 surged 1.36%, while South Korea's Kospi advanced 0.52%. The Kosdaq index saw a massive jump of over 3%, reflecting strong regional risk appetite. However, crude oil remains a point of concern, with Brent crude trading near $104 per barrel due to ongoing West Asia tensions.

GIFT Nifty and Domestic Cues

The GIFT Nifty is currently trading around the 23,688 mark, indicating a positive start for the Nifty 50, which closed at 23,654.70 on Thursday. Early trends suggest a potential gap-up of 30-50 points. Domestic sentiment remains cautious but resilient; despite heavy selling by Foreign Institutional Investors (FIIs) worth ₹1,891 crore on Thursday, Domestic Institutional Investors (DIIs) provided support with net purchases of ₹2,492 crore.

Technically, the Nifty faces immediate resistance at the 23,850–23,900 zone, while the 23,350–23,400 range continues to act as a crucial support level. The India VIX has eased slightly to 17.82, suggesting a minor reduction in market anxiety.

Key Stocks in Focus

• Central Bank of India: The government has launched an Offer for Sale (OFS) to divest a 4% stake in the bank, with an additional 4% greenshoe option. Bidding for non-retail investors opens today.
• State Bank of India (SBI): The All India State Bank of India Staff Federation has threatened a two-day nationwide strike starting May 25, citing demands for recruitment and pension reforms.
• Sun Pharma: The stock will be in focus following its Q4 FY26 earnings announcement. Investors are closely watching for the final dividend declaration.
• ITC: The company reported a 4.9% increase in net profit for Q4 despite a 7% decline in revenue, with improved EBITDA margins providing some cushion.
• Juniper Hotels: Shares may see volatility after the company reported an 8.3% decline in year-on-year net profit for the fourth quarter.

Key Events to Watch Today

• Economic Data: The Reserve Bank of India (RBI) is scheduled to release Bank Loan and Deposit Growth data for the fortnight ended May 15 at 11:30 AM.
• Geopolitical Developments: Any further updates on US-Iran peace negotiations will be critical for global oil prices and market volatility.
• APO Governing Body Meeting: The 68th session of the Asian Productivity Organization continues in New Delhi, with high-level discussions on regional economic frameworks.
• GDP Forecasts: Markets may react to ICRA’s recent downward revision of India’s FY27 GDP forecast to 6.2%, citing the impact of elevated crude prices.

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

Tags: Pre-Market Stock Market Nifty Sensex Market Update