Global Market Cues

Global markets displayed a mixed performance overnight as investors continued to assess developments surrounding US trade policy and President Donald Trump's latest tariff announcements. In the US, the Dow Jones Industrial Average closed 0.4% lower on Tuesday, July 8, while the S&P 500 saw a marginal decline of less than 0.1%. The tech-heavy Nasdaq Composite, however, managed to eke out a gain of less than 0.1%. This mixed close followed President Trump's decision to extend the deadline for new tariff rates on several countries, including Japan and South Korea, to August 1, allowing for further negotiations. US stock futures were also mixed in early Wednesday trade, with Dow Jones Futures slightly negative, and Nasdaq and S&P 500 futures mildly positive.

European markets largely closed higher on Tuesday. The STOXX Europe 50 Index advanced by 0.59%. Germany's DAX rose 0.2%, and Britain's FTSE 100 edged up 0.2%, while France's CAC 40 shed 0.1%.

Asian markets are trading with a mixed bias on Wednesday morning. Japan's Nikkei 225 gained 0.33%, and the Topix index rose 0.17%. South Korea's Kospi index was flat, while the Kosdaq added 0.29%. Hong Kong's Hang Seng index futures indicated a stronger open, but Australia's S&P/ASX 200 slipped 0.26%. The overall cautious tone in Asia is largely attributed to the looming US tariff threats.

GIFT Nifty and Domestic Cues

The GIFT Nifty futures were trading around 25,596, indicating a marginal decline of 16 points as of 6:31 AM IST, signaling a flat to negative opening for the Indian benchmark indices. Other reports also suggest GIFT Nifty trading around 25,582.50, implying a negative open.

On Tuesday, July 8, the Indian equity market ended with modest gains. The Sensex rose by 270.01 points (0.32%) to close at 83,712.51, and the Nifty 50 settled 61.20 points (0.24%) higher at 25,522.50. This positive sentiment was partly fueled by President Trump's comments hinting at a potential trade agreement with India and the delay in new tariffs.

Despite a nationwide call for a Bharat Bandh on July 9, 2025, both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) will operate as usual, as no special closure notice has been issued. Foreign Institutional Investors (FIIs) continue to show outflows, but strong Domestic Institutional Investor (DII) inflows are expected to provide some cushion against volatility.

Key Stocks in Focus

• Banking & Financials: Kotak Mahindra Bank and HDFC Bank Ltd. were significant contributors to the Nifty's gains on Tuesday.
• Metals: Vedanta and Hindalco could be in focus.
• Pharmaceuticals: Cipla, Lupin, and Dr. Reddy's are among the stocks to watch.
• Infrastructure & Manufacturing: JSW Steel Ltd., Tata Steel Ltd., Seamec Ltd., Dixon Technology Ltd., and Rail Vikas Nigam Ltd. may see activity based on overnight news flow.
• Textiles: Gokaldas Exports and other textile stocks surged on Tuesday following the US imposing a 35% tariff on Bangladesh.
• Market-linked Stocks: Shares of BSE Ltd., CDSL, and WAM fell on Tuesday due to reports that SEBI may consider linking options trading exposure to cash market positions.

Key Events to Watch Today

• US Tariff Developments: Continued uncertainty surrounding President Trump's tariff policies will remain a key global and domestic market driver.
• FII and DII Activity: The trend of foreign and domestic institutional investment will be closely monitored.
• Trade Deal Updates: Any further news regarding the India-US trade deal could influence market sentiment.
• Bharat Bandh Impact: While exchanges are open, potential disruptions from the Bharat Bandh might affect liquidity and volatility in certain regions.
• MCX Electricity Futures: The Multi Commodity Exchange (MCX) is set to debut electricity futures trading on July 10, a significant development for India's energy derivatives market.
• Upcoming Earnings Season: The start of the earnings season, beginning next week, will shift focus to corporate performance.

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

Tags: Pre-Market Stock Market Nifty Sensex Market Update