Pre-Market Report: Flat-To-Positive Start Expected as Wall Street Rebounds and Oil Prices Ease — September 18, 2026

Global Market Cues

Wall Street indices staged a strong recovery on Thursday, brushing aside post-Federal Reserve policy jitters as softening crude oil prices and a pullback in sovereign yields boosted risk appetite. The tech-heavy Nasdaq Composite led gains, surging 1.69% to finish at 26,418.30. The S&P 500 advanced 1.14% to 7,637.76, marking one of its best sessions in recent weeks, while the Dow Jones Industrial Average added 316.14 points (0.62%) to settle at 51,778.04.

The recovery in equity markets was primarily aided by a pullback in benchmark US Treasury yields and crude oil. The 10-year US Treasury yield declined by roughly 7 to 9 basis points to 4.93%, easing back below the 5% threshold. In energy markets, Brent crude retreated toward $104 per barrel as immediate supply disruption concerns cooled and market participants tracked diplomatic developments in the Middle East.

Asian markets were trading predominantly in the green on Friday morning, taking positive leads from Wall Street's overnight rally:

• South Korea's Kospi surged over 2.2%, outperforming regional peers on strong semiconductor buying.
• Japan’s Nikkei 225 climbed 0.89% as investors braced for the Bank of Japan's rate outcome.
• Hong Kong's Hang Seng index gained 0.4%, while mainland Chinese benchmarks traded flat to slightly higher.

GIFT Nifty and Domestic Cues

Early indications from the GIFT Nifty point to a calm and mildly positive start for Dalal Street. The GIFT Nifty futures were hovering between 23,345 and 23,370, indicating a minor positive premium over the Nifty 50 previous settlement.

On Thursday, the domestic benchmark indices consolidated, with the Nifty maintaining ground above key technical support near 23,200. The retreat in global crude oil prices serves as an immediate macro positive for India, given its heavy dependence on imported crude. However, overall upside momentum may face resistance near higher technical levels around 23,450–23,500 due to cautiousness regarding central bank monetary policy cycles and foreign institutional investor (FII) trading action.

Key Stocks in Focus

• IT Sector (TCS, Infosys, HCLTech, Wipro): Information technology stocks are set to be in demand following a sharp rally in US tech counters overnight, where the Nasdaq jumped over 1.6%.
• Oil Marketing Companies & Aviation (IOC, BPCL, HPCL, InterGlobe Aviation): Shares of downstream oil retailers and airline operators will be watched closely as Brent crude prices eased back to around $104 per barrel.
• Banking and Financials (HDFC Bank, ICICI Bank, SBI): Rate-sensitive financial stocks will react to cooling sovereign bond yields and global liquidity cues.
• Automobile Stocks (Tata Motors, Mahindra & Mahindra, Maruti Suzuki): Counter-specific activity is expected amid inventory adjustments and demand trends in the run-up to the peak festive period.

Key Events to Watch Today

• Bank of Japan (BOJ) Policy Outcome: The central bank's rate decision and commentary on its future rate-hiking path remain a key catalyst for global currency and equity markets.
• FII/DII Institutional Flows: Trends in net institutional buying and selling figures will be monitored to gauge foreign appetite amid fluctuating global bond yields.
• Crude Oil & Geopolitics: Movement in international crude benchmarks and ongoing geopolitical developments across key Middle Eastern trade lanes.
• US Dollar Index & Yields: Ongoing behavior of the US Dollar Index (hovering near 100.20) and Treasury yields ahead of the weekend.

Tags: Pre-Market Stock Market Nifty Sensex Market Update