Pre-Market Report: GIFT Nifty Signals Positive Start Amid Global Tech Sell-Off

Global Market Cues

Overnight on Wall Street, major indices finished in the red, primarily weighed down by a sharp retreat in semiconductor and artificial intelligence-related stocks. The Nasdaq Composite fell 0.66% to 26,040.03, while the S&P 500 slipped 0.22% to 7,483.23. The Dow Jones Industrial Average surrendered an intraday gain of over 400 points to close nearly flat at 52,305.24. Key chipmakers like Micron Technology and SanDisk plunged over 10%, while Nvidia and AMD also faced profit-taking.

Asian markets are trading significantly lower this morning, led by a dramatic slump in South Korean equities. The Kospi index dropped as much as 7% intraday, triggering a brief trading halt, following the weakness in U.S. tech stocks. Japan's Nikkei 225 is down over 2%, and Australia’s ASX 200 has slipped roughly 0.5%. However, a decline in Brent crude to near $71 per barrel—its lowest in months—following constructive US-Iran talks in Doha, is acting as a major tailwind for energy-importing nations like India.

GIFT Nifty and Domestic Cues

Despite the global tech rout, the GIFT Nifty is signaling a buoyant start for the Indian market. As of 7:45 AM IST, GIFT Nifty was trading at approximately 24,185, representing a premium of nearly 100 points over the Nifty 50's previous close of 24,005.85.

Domestic sentiment remains resilient following Wednesday’s rebound where the Sensex gained 444 points and the Nifty reclaimed the 24,000 mark. The India VIX has cooled to a multi-session low of 13.24, suggesting lower volatility. Buying interest in banking and FMCG sectors is expected to continue, though the IT sector may face pressure tracking the Nasdaq’s weakness.

Key Stocks in Focus

• Alkem Labs: The company received favorable Income Tax appellate orders for AY2018-19 to AY2022-23, resulting in the deletion of disallowances worth ₹660.77 crore.
• Banking Stocks (South Indian Bank, Canara Bank, Indian Bank): These lenders reported strong Q1 loan growth data. South Indian Bank saw gross advances rise 17% YoY, while Canara Bank reported a 18% jump in global advances.
• Larsen & Toubro (L&T): The company has extended the deadline for its stake disposal in L&T Metro Rail (Hyderabad) to September 30, 2026.
• Vodafone Idea: Remained the most active stock by volume in the previous session; continues to see high retail and institutional interest.
• IT Stocks (TCS, HCL Tech, Infosys): Likely to be under pressure today following the 6.3% decline in the U.S. semiconductor index overnight.
• Devyani International: Announced additional investments in its Thailand operations, increasing its stake to approximately 56.7%.

Key Events to Watch Today

• US Economic Data: The U.S. will release critical labor market data today, including Non-Farm Payrolls (expected 110k), the Unemployment Rate (cons. 4.3%), and Initial Jobless Claims.
• India-Japan Summit: Prime Minister Narendra Modi and Japanese PM Sanae Takaichi are holding the 16th Annual Summit in New Delhi, with a focus on a 10 trillion Yen investment roadmap and semiconductor manufacturing.
• Monsoon Progress: Markets will continue to track the rainfall distribution as the peak sowing season for July begins.

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

Tags: Pre-Market Stock Market Nifty Sensex Market Update