Pre-Market Report: Cautious Start Expected Amid Global Sell-off and Rising Oil Prices

Global Market Cues

The overnight sentiment from global markets is decidedly bearish following a "double whammy" of hot inflation data and escalating conflict.

• US Markets Slump: All three major US indices closed sharply lower on Wednesday. The Dow Jones Industrial Average tumbled 1.87% (953 points), the S&P 500 fell 1.62%, and the Nasdaq Composite led the decline with a 1.98% drop.
• Inflation Shock: US Consumer Price Index (CPI) for May accelerated to a three-year high of 4.2% YoY, surpassing expectations and fueling fears that the Federal Reserve may pivot toward rate hikes rather than cuts later this year.
• Geopolitical Tensions & Oil: Crude oil prices surged after the US launched fresh military strikes against Iran. Brent crude jumped over 2% to trade above $95 per barrel, while WTI advanced toward $93.
• Tech Sell-off: High-valuation AI and semiconductor stocks faced intense pressure. Super Micro Computer plunged over 12% following a $7 billion equity financing announcement, dragging down peers like Nvidia and Micron.

GIFT Nifty and Domestic Cues

The GIFT Nifty is currently signaling a cautious to negative start for the Indian indices, reflecting the global risk-off mood.

• GIFT Nifty Status: As of 7:50 AM IST, the GIFT Nifty was trading around the 23,186 level, indicating a gap-down start of approximately 30–40 points for the Nifty 50 relative to Wednesday's close of 23,214.95.
• Institutional Activity: On June 10, Foreign Institutional Investors (FIIs) remained net sellers, offloading shares worth ₹2,124.98 crore. Conversely, Domestic Institutional Investors (DIIs) provided a cushion by net purchasing shares worth ₹3,123.95 crore.
• Technical Outlook: Analysts suggest that the 23,000–23,100 zone remains a critical support level for the Nifty, while resistance is expected near the 23,400–23,500 mark.

Key Stocks in Focus

Several stocks are expected to see heavy volume today due to corporate actions and regulatory news.

• Wipro: The IT major will commence its ₹15,000 crore (₹150 billion) share buyback programme today, June 11. The window will remain open until June 17.
• REC & Power Finance Corp (PFC): Both stocks will be in the spotlight after receiving formal approval for their high-profile merger.
• Zomato: The company has reportedly received a fresh GST demand notice, which may weigh on the stock in the early session.
• Banking Sector: Bank of Baroda and Canara Bank have announced hikes in their Marginal Cost of Funds Based Lending Rate (MCLR) by 5 basis points, effective immediately.
• Reliance Industries: In focus following reports of a new strategic partnership for data center expansion and clean energy initiatives.

Key Events to Watch Today

Investors should keep an eye on these critical triggers throughout the session.

• US PPI Data: Following the hot CPI print, the US Producer Price Index (PPI) data for May is scheduled for release today, which will further clarify the inflation trajectory.
• Middle East Conflict: Any further escalation in the US-Iran conflict or updates regarding the Strait of Hormuz could cause immediate volatility in energy stocks and the broader market.
• Weekly F&O Expiry: Expect increased volatility in the latter half of the session due to the weekly options expiry of the Nifty 50.

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

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