Pre-Market Report: Sharp Gap-Down Expected as Geopolitical Tensions Escalate

Global Market Cues

The global environment turned sharply risk-off over the weekend following reports of coordinated US and Israeli military strikes against Iran. This geopolitical shock has sent ripples through financial markets, with Asian peers like the Nikkei 225 tumbling over 2% in early Monday trade.

• US Markets: Wall Street closed Friday in the red, with the Dow Jones dropping 521 points (1.1%) and the Nasdaq falling 0.9%. Persistent inflation concerns were reignited after the US Producer Price Index (PPI) came in at 2.9%, far exceeding the 1.6% consensus.
• Commodities: Crude oil prices have surged, with Brent crude jumping towards $73/barrel and some reports indicating a double-digit spike in early Monday trade due to fears of supply disruptions in the Strait of Hormuz. Gold has also spiked as investors seek safe-haven assets.
• Middle East Crisis: Retaliatory strikes by Iran on regional targets and the closure of UAE stock markets (ADX and DFM) for two days have further heightened global uncertainty.

GIFT Nifty and Domestic Cues

GIFT Nifty is currently signaling a deep cut for the Indian markets. It was last seen trading around the 25,050 mark, suggesting a potential opening drop of approximately 130–200 points for the Nifty 50.

• Market Sentiment: The Nifty 50 closed Friday at 25,178.65, down 1.25%, and is now testing critical psychological support at the 25,000 level.
• Expiry Shift: Investors should note that the weekly Nifty expiry has been shifted to today, Monday, March 2, as Indian markets will remain closed on Tuesday, March 3, for the Holi festival.
• FII/DII Activity: Foreign Institutional Investors (FIIs) remained net sellers on Friday, offloading equities worth ₹4,630 crore, while Domestic Institutional Investors (DIIs) provided some cushion with net purchases.

Key Stocks in Focus

Several stocks and sectors are expected to witness high volatility today based on corporate news and global developments:

• Oil & Gas Stocks: ONGC, Oil India, and Reliance Industries will be in the spotlight as global crude prices surge.
• IT Stocks: TCS, Infosys, and HCL Tech may face continued pressure following the tech-led rout on the Nasdaq and concerns over discretionary spending cuts due to geopolitical instability.
• NBCC (India): The company bagged a large redevelopment order worth approximately ₹7.75 billion from the Delhi Development Authority (DDA).
• Fino Payments Bank: Shares will be under pressure following reports of the arrest of its CEO, Rishi Gupta.
• Foseco India: The stock is in focus after reporting an 8.1% YoY increase in Q3 revenue.

Key Events to Watch Today

• Nifty Weekly Expiry: The shift in expiry is likely to amplify intraday volatility and short-term positioning moves.
• Geopolitical Updates: Any further escalation or signs of de-escalation in the Iran-Israel-US conflict will be the primary driver for market direction.
• Auto Sales Data: Monthly sales figures for February from major automakers like Maruti Suzuki, M&M, and Tata Motors will be monitored.

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

Tags: Pre-Market Stock Market Nifty Sensex Market Update