Global Market Cues

The global market sentiment is decidedly bearish following a heavy sell-off on Wall Street overnight. US benchmarks closed lower for the third consecutive session, led by a rout in technology and software stocks. The Dow Jones Industrial Average shed 592.58 points (1.20%) to end at 48,908.72, while the S&P 500 lost 1.23% to close at 6,798.40. The tech-heavy Nasdaq Composite saw the steepest decline, falling 1.59% to settle at 22,540.59.

Asian markets have followed suit this morning, trading deep in the red. Japan's Nikkei 225 opened down 1.22%, and South Korea's Kospi plunged as much as 5% in early trade. Hong Kong's Hang Seng index also opened significantly lower, down 2%, as worries over AI-driven disruption and weak US labor data continue to rattle investors.

• US Markets: Major indices fell 1.2% to 1.6% overnight; tech giants like Microsoft, Nvidia, and Qualcomm saw significant selling pressure.
• Asian Markets: Broad-based declines across Tokyo, Seoul, and Hong Kong; Kospi and Hang Seng are among the worst performers.
• Commodities: Silver prices plummeted 10% on MCX, and gold also faced a sharp decline; Bitcoin fell below the $64,000 mark.

GIFT Nifty and Domestic Cues

GIFT Nifty is currently signaling a weak opening for the Indian domestic indices, trading around the 25,585 level. This reflects a discount of approximately 140 points from the Nifty 50's previous close of 25,642.80. Domestic investors are primarily focused on the RBI’s Monetary Policy Committee (MPC) decision today. The committee, led by Governor Sanjay Malhotra, is widely expected to maintain the status quo on the repo rate at 5.25%.

Institutional activity on Thursday showed a divergence, with Foreign Institutional Investors (FIIs) offloading equities worth ₹2,150.51 crore, while Domestic Institutional Investors (DIIs) provided some support with net purchases of ₹1,129.82 crore.

• GIFT Nifty: Trading at a discount of ~140 points, suggesting a gap-down start for Nifty and Sensex.
• RBI Policy: The repo rate is expected to be held steady; however, the Governor's commentary on inflation and growth will be closely monitored.
• FII/DII Activity: FIIs remain net sellers, adding pressure on domestic liquidity.

Key Stocks in Focus

Several high-profile companies reported their Q3 earnings yesterday, which will likely trigger stock-specific volatility today.

• Bharti Airtel: Reported a 55% year-on-year drop in net profit to ₹6,631 crore for the December quarter, primarily due to a one-time provision related to the labor code.
• Tata Motors: Its Passenger Vehicle (PV) segment posted a consolidated net loss of ₹3,483 crore in Q3, compared to a profit in the same period last year.
• Hero MotoCorp: Reported a 12% rise in net profit to ₹1,349 crore and declared a bumper dividend of ₹110 per share.
• LIC: India's largest insurer saw its Q3 net profit rise 17% to ₹12,958 crore.
• IT Stocks: Companies like TCS, Infosys, and Wipro will be under pressure following the Nasdaq's decline and renewed concerns over AI-led disruption in the sector.

Key Events to Watch Today

• RBI Monetary Policy: The interest rate decision and policy stance announcement are expected at 10:00 AM IST.
• Corporate Earnings: Continued flow of Q3 results from mid-cap and small-cap companies.
• Global Macro Data: Investors will keep an eye on the US dollar index and Treasury yields for further direction.

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

Tags: Pre-Market Stock Market Nifty Sensex Market Update

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