Pre-Market Report: Muted Start Expected Amid Mixed Global Signals and Pre-Budget Caution

Global Market Cues

The overnight cues from Wall Street were mixed as investors grappled with a heavy slate of corporate earnings and geopolitical uncertainty. The Nasdaq Composite fell 0.72% and the S&P 500 dipped 0.13%, largely dragged down by a 12% plunge in Microsoft shares due to concerns over high AI-related capital expenditure. However, the Dow Jones managed a slight gain of 0.11%. In Asia this morning, markets are trading mostly higher after U.S. President Donald Trump announced he would name his choice for the next Federal Reserve chair today.

• U.S. Markets: Nasdaq (-0.72%), S&P 500 (-0.13%), Dow Jones (+0.11%).
• Asian Markets: Nikkei 225 (+0.25%), Kospi (+1.05%), ASX 200 (+0.20%).
• Commodities: Brent crude rose toward $67/barrel on U.S.-Iran tensions, while Gold remains near record highs around $5,450/ounce.
• Currency: The U.S. Dollar Index (DXY) rebounded slightly to 96.20 levels.

GIFT Nifty and Domestic Cues

GIFT Nifty is currently trading around the 25,430–25,460 range, suggesting a gap-down opening of approximately 50–80 points for the Nifty 50. Domestic sentiment is supported by the Economic Survey 2026, which projected a robust GDP growth of 7.4% for FY26. However, institutional flow remains a concern as FIIs turned net sellers of ₹394 crore in the previous session, though DIIs provided support with a net purchase of ₹2,638.80 crore.

• GIFT Nifty: Trading at 25,426 (Down ~0.32%).
• Economic Survey: FY26 GDP growth pegged at 7.4%; FY27 growth projected at 6.8–7.2%.
• FII/DII Activity: FIIs net sold ₹394 cr; DIIs net bought ₹2,638.8 cr on Jan 29.
• Market Volatility: India VIX eased slightly to 13.37, indicating a range-bound expectation.

Key Stocks in Focus

Several high-profile companies are slated to report their Q3 earnings today, which will likely drive stock-specific action.

• Earnings Today: Power Grid, SAIL, Welspun Corp, Reliance Power, Relaxo Footwears, and Strides Pharma.
• Tech Stocks: Infosys, TCS, and Wipro may see pressure following the weakness in U.S. software giants like Microsoft.
• Metal Stocks: Tata Steel and JSW Steel remain in focus as metal prices outperform amid global commodity firming.
• Banking: HDFC Bank and ICICI Bank will be watched for stability after supporting the recovery in the previous session.

Key Events to Watch Today

Investors will be closely monitoring global political developments and domestic pre-budget positioning.

• U.S. Fed Chair Nominee: President Trump’s announcement of the next Federal Reserve chief.
• Pre-Budget Positioning: Market participants are expected to adjust portfolios ahead of the Union Budget on Sunday, Feb 1.
• Geopolitical Updates: Any further escalation in U.S.–Iran tensions could further impact crude oil and gold prices.

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

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