Pre-Market Report: Strong Gap-Up Expected as US-Iran Peace Hopes Ignite Global Rally

Global Market Cues

The global financial landscape shifted dramatically overnight following news that U.S. President Donald Trump has called off planned military strikes on Iran, signaling that a peace framework is nearing completion. This de-escalation triggered a broad-based rally on Wall Street and a sharp decline in energy prices.

• Wall Street Performance: U.S. indices recorded their best session in two months. The S&P 500 surged 1.73% to close at 7,393, while the tech-heavy Nasdaq Composite jumped 2.54% to 25,810. The Dow Jones Industrial Average rose 1.86% to 50,848.
• Asian Markets: Asian bourses are witnessing a "sea of green" this morning. South Korea’s Kospi is leading the gains, soaring over 7% at open. Japan’s Nikkei 225 is up 3.36%, and the Hang Seng index is trading 1.48% higher.
• Commodities & Bonds: Brent crude oil tumbled below the $90 mark, currently trading near $88.98 per barrel as supply disruption fears eased. U.S. 10-year Treasury yields dropped to 4.45%, providing further support to equity valuations.
• Economic Data: U.S. Core CPI for May came in at 0.2% Month-on-Month, slightly below the 0.3% estimate, which has cooled fears of an immediate interest rate hike by the Federal Reserve.

GIFT Nifty and Domestic Cues

GIFT Nifty is indicating a blockbuster start for the Indian benchmark indices, reflecting the exuberant mood in the Asia-Pacific region.

• GIFT Nifty Status: As of 8:00 AM IST, GIFT Nifty is trading at approximately 23,523, suggesting a premium of over 320 points relative to the Nifty 50 futures' previous close.
• FII/DII Activity: On June 11, Foreign Institutional Investors (FIIs) remained net sellers, offloading shares worth ₹1,987.09 crore. However, Domestic Institutional Investors (DIIs) provided strong support with net purchases of ₹4,224.51 crore.
• Technical Outlook: After two days of consolidation, the Nifty 50 is expected to break out of its recent range. Support is now firmly placed at the 23,100–23,150 zone, with immediate resistance seen at 23,500.

Key Stocks in Focus

Company-specific action will be high today due to a heavy dividend calendar and significant corporate partnerships.

• Adani Group Stocks: Adani Enterprises, Adani Ports, and Adani Total Gas will turn ex-dividend today. Additionally, AdaniConneX has announced the 100% acquisition of Madhuvanti Build Estate to expand its data center footprint.
• TCS: The IT major has announced a strategic partnership with Anthropic to integrate advanced AI models into enterprise solutions, aiming to accelerate AI adoption across global clients.
• Vedanta: The stock remains in focus as the company moves forward with its demerger plan and seeks to raise ₹2,575 crore through debentures to strengthen its balance sheet.
• Honasa Consumer: Shares are expected to react to the company's Investor Day guidance, where it targeted a 30% growth in focus categories and an EBITDA margin expansion of 500 basis points for the coming fiscal.
• Ex-Dividend Watch: Several large-cap and mid-cap stocks turn ex-dividend today, including Trent (₹6), Ambuja Cement (₹2), PNB (₹3), and Canara Bank (₹4.20).

Key Events to Watch Today

Investors should keep an eye on these global and domestic triggers during the session.

• SpaceX Nasdaq Listing: The world's largest IPO, valued at $1.77 trillion, is set to list on the Nasdaq today. This is expected to cause significant liquidity shifts in global tech portfolios.
• US-Iran Negotiations: Further official announcements regarding the signing of a peace treaty could keep oil prices volatile and sustain the rally in risk assets.
• India’s Industrial Production (IIP): Domestic industrial output data for April is scheduled for release later today, which will provide cues on the health of the manufacturing sector.
• Forex Reserves: The RBI will release the weekly foreign exchange reserve data, which will be monitored for signs of central bank intervention amid global currency fluctuations.

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

Tags: Pre-Market Stock Market Nifty Sensex Market Update