Pre-Market Report: Strong Gap-Up Expected as Global Cues Turn Bullish

Global Market Cues

Global sentiment turned overwhelmingly positive over the weekend, providing a strong tailwind for equities. U.S. markets concluded Friday on a high note, with the Dow Jones Industrial Average hitting a fresh record high of 50,579.70, up 0.6%, marking its eighth consecutive winning week. The S&P 500 and Nasdaq also ended in the green, gaining 0.4% and 0.2% respectively. Notably, U.S. markets will remain closed today, Monday, May 25, in observance of Memorial Day.

In Asia, the momentum escalated this morning. Japan's Nikkei 225 surged past the 65,000 mark for the first time in history, gaining over 2.7% as easing oil prices lifted risk appetite. China’s Shanghai Composite also traded higher by 0.6%. Meanwhile, markets in Hong Kong and South Korea are closed for public holidays. A critical driver for this rally is the potential reopening of the Strait of Hormuz, as reports suggest constructive progress in US-Iran peace talks. Consequently, Brent crude prices plunged over 5% to trade near $98 per barrel, easing inflation concerns for major importers like India.

GIFT Nifty and Domestic Cues

GIFT Nifty is currently signaling a robust start for the Indian indices. As of 7:30 AM IST, GIFT Nifty was trading around 23,990, indicating a gap-up opening of approximately 250–280 points for the Nifty 50 relative to Friday's close of 23,719.30.

On the domestic front, sentiment is bolstered by the RBI's record dividend payout of ₹2.87 lakh crore for the fiscal year, which provides the government with significant fiscal headroom. Additionally, comments from US Secretary of State Marco Rubio regarding a potential trade deal between the US and India have added to the optimistic outlook. While FII outflows remain a concern, strong DII buying continues to provide a safety net for the markets.

Key Stocks in Focus

• Suzlon Energy & RVNL: Both companies are scheduled to report their Q4FY26 earnings today, with investors eyeing order book updates.
• Nykaa: The stock will be in focus following strong Q4 results where net profit surged 286% YoY to ₹78.4 crore, driven by growth in the beauty and fashion segments.
• ITC: The board has declared a final dividend of ₹8 per share, which is expected to support the stock in today's session.
• Sugar Stocks: The government has approved the export of 8,606 tonnes of raw cane sugar to the US under a tariff quota, providing a boost to the sector.
• Page Industries: Reported a 9% YoY increase in net profit to ₹1.79 billion, beating several analyst estimates.
• Banking Stocks: Heavyweights like ICICI Bank and HDFC Bank will be closely watched as the Nifty Bank attempts to sustain its position above the 54,000 mark.

Key Events to Watch Today

• Q4 Earnings: A heavy slate of corporate results including Container Corporation of India (CONCOR), Amara Raja Energy, and Rail Vikas Nigam.
• Geopolitical Updates: Further headlines regarding the US-Iran peace negotiations and the status of the Strait of Hormuz.
• Oil Prices: Continued volatility in Brent and WTI crude following the recent sharp sell-off.
• US Market Holiday: Lower global trading volumes expected in the second half of the day due to the Memorial Day holiday in the United States.

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

Tags: Pre-Market Stock Market Nifty Sensex Market Update