Pre-Market Report: Indian Markets Set for Sharp Gap-Down Opening Amid Global Tariff Concerns
Published: 2026-01-19 08:00 IST | Category: Markets | Author: Abhi
Global Market Cues
The global sentiment has turned cautious following a volatile Friday on Wall Street and fresh geopolitical tensions. US President Donald Trump has threatened to impose a 10% tariff on eight European countries over their opposition to his plans regarding Greenland, with the rate potentially rising to 25% by June. This has triggered a flight to safety, with gold and silver prices hitting new record highs.
- US Markets: Wall Street ended marginally lower on Friday, January 16. The Dow Jones fell 0.18%, while the S&P 500 and Nasdaq Composite both slipped approximately 0.07%. US markets are closed today, Monday, January 19, in observance of Martin Luther King Jr. Day.
- Asian Markets: Most Asian indices are trading in the red this morning. Japan's Nikkei 225 and Hong Kong’s Hang Seng have seen sharp declines as investors react to the potential for a renewed global trade war.
- Commodities: Silver has surged to a record $89.60 per ounce, gaining 26% so far in 2026, while Brent crude oil is trading around $64.13 per barrel amid ongoing protests in Iran.
GIFT Nifty and Domestic Cues
GIFT Nifty is currently signaling a weak start for the Indian indices. As of 7:30 AM IST, GIFT Nifty was trading around the 25,571 level, indicating a gap-down opening of approximately 180 points or 0.66% relative to the Nifty 50's Friday close of 25,694.35.
- Institutional Activity: Foreign Institutional Investors (FIIs) remained net sellers on Friday, offloading equities worth ₹4,346.10 crore. Domestic Institutional Investors (DIIs) provided some support by purchasing shares worth ₹3,935.30 crore.
- Technical Outlook: Analysts suggest that the Nifty 50 faces immediate support at the 25,600 mark, aligned with its 100-day moving average. A breakdown below this could lead the index toward 25,500.
Key Stocks in Focus
Several stocks are expected to see high volatility today due to earnings reports and corporate developments:
- Hindustan Zinc: The board is meeting today to consider and approve the Q3 FY26 financial results. The stock will also be in focus due to the recent rally in silver prices.
- Wipro & Tech Mahindra: Both IT majors will be in the limelight following recent earnings announcements and positive commentary on the IT spending outlook.
- Bharat Coking Coal: The company is scheduled to make its debut on the NSE and BSE today after its IPO was subscribed over 143 times.
- BPCL & SBI: These stocks have been identified by technical analysts as potential candidates for a reversal or breakout based on recent price action.
Key Events to Watch Today
Investors should keep an eye on these major global and domestic events:
- China’s Macro Data: China is set to release its Q4 GDP growth rate today, along with December industrial production and retail sales data, which will be crucial for assessing the health of the world's second-largest economy.
- World Economic Forum (WEF): The annual meeting begins today in Davos, Switzerland, with global leaders expected to discuss trade policies and geopolitical risks.
- Eurozone Inflation: Final December CPI data for the Eurozone will be released, providing further clarity on the ECB’s potential interest rate path.
- US Holiday: Trading volumes may be thinner in the second half of the day as US cash markets remain closed for Martin Luther King Jr. Day.
TAGS: Pre-Market, Stock Market, Nifty, Sensex, Market Update
Tags: Pre-Market Stock Market Nifty Sensex Market Update