Pre-Market Report: Indian Markets Eye Volatile Start Amid US-Iran Tensions and Tech Sell-off**

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Global Market Cues

The overnight global sentiment was dominated by a volatile session on Wall Street, where the Nasdaq Composite fell 1% and the S&P 500 slipped 0.3%. High-flying AI and semiconductor stocks, including Nvidia and Apple, faced significant profit-taking, dragging the technology sector lower. In contrast, the Dow Jones Industrial Average managed a slight gain of 0.2%, supported by defensive sectors and a rebound in airline stocks.

Geopolitically, the situation in the Middle East has intensified. The US launched retaliatory strikes on Iranian targets following the downing of an American Apache helicopter near the Strait of Hormuz. This development has pushed Brent crude prices back toward $92 per barrel, raising concerns over energy supply disruptions. In Asia, markets are trading mostly lower this morning, with the Nikkei and Kospi reflecting the weakness seen in US tech giants.

GIFT Nifty and Domestic Cues

GIFT Nifty is currently trading around the 23,280–23,300 mark, suggesting a flat to mildly positive start for the Nifty 50 compared to its previous close of 23,242.10. On Tuesday, domestic markets showed resilience, with the Bank Nifty surging over 2% to close at 55,194.50, led by a sharp rally in PSU and private banking stocks.

Sentiment is further supported by the RBI’s recent unveiling of a concessional forex swap facility to improve foreign currency liquidity. Additionally, the India VIX has cooled down to 15.56, indicating a reduction in immediate market fear. However, the gains may be capped by Foreign Institutional Investors (FIIs) who remain wary of the strengthening US Dollar and the impending US inflation report.

Key Stocks in Focus

• State Bank of India (SBI): The banking giant crossed the psychological milestone of ₹1,000 in the previous session; it remains in focus as it leads the PSU bank rally.
• Reliance Industries & ONGC: These stocks will be sensitive to the fluctuations in crude oil prices following the US-Iran military escalations.
• NLC India: The government’s Offer for Sale (OFS) at a floor price of ₹303 will keep the stock active in today's session.
• IndiGo (InterGlobe Aviation): Benefiting from a recovery in travel demand and a recent shift in aviation turbine fuel (ATF) pricing strategies.
• Tech Mahindra & Infosys: Likely to face pressure following the 1% drop in the Nasdaq and general weakness in global technology sentiment.

Key Events to Watch Today

• US CPI Data (May 2026): Scheduled for release at 6:00 PM IST, this is the most critical event of the week, determining the Fed's future interest rate trajectory.
• US-Iran Conflict: Any further escalation or official statements from Tehran regarding the Strait of Hormuz will impact global oil and equity volatility.
• EIA Crude Oil Inventories: Weekly data from the US will provide further cues on energy demand amid the current supply-side shocks.
• Bank of Canada Interest Rate Decision: A secondary global cue for interest rate trends across major economies.

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

Tags: ** Pre-Market Stock Market Nifty Sensex Market Update