Global Market Cues

The global sentiment shifted dramatically overnight as Wall Street staged a powerful comeback. The S&P 500 rose 0.83% and the Nasdaq Composite jumped 1.38% after U.S. President Donald Trump suggested that the conflict in West Asia might be nearing a resolution. This optimism triggered a historic reversal in energy markets, with Brent crude plunging over 9% to settle near $89 per barrel after having spiked toward $120 intraday.

Asian markets are trading with significant gains this morning, tracking the positive cues from the U.S. and the cooling of energy costs. South Korea’s Kospi is leading the pack with a surge of over 5%, while Japan’s Nikkei 225 is up more than 1.6%. The G7's decision to release emergency oil reserves has further stabilized investor nerves regarding global inflation.

GIFT Nifty and Domestic Cues

GIFT Nifty is currently trading at approximately 24,359.5, indicating a gap-up start of nearly 340 points for the Nifty 50. On Monday, the domestic indices ended sharply lower but recovered nearly 50% of their intraday losses as oil began its retreat.

• FII/DII Activity: Foreign Institutional Investors (FIIs) remained net sellers on Monday, offloading shares worth ₹6,345.57 crore, while Domestic Institutional Investors (DIIs) provided a cushion by purchasing shares worth ₹9,013.80 crore.
• Inflation Outlook: Finance Minister Nirmala Sitharaman stated in Parliament that the recent spike in crude is unlikely to have a substantial impact on domestic inflation, as current levels remain near the lower bound of the RBI's tolerance band.
• Currency: The Indian Rupee hit a record low of 92.33 against the Dollar on Monday but is expected to find some relief today following the decline in crude prices.

Key Stocks in Focus

• PSU Banks: Stocks like SBI and Bank of Baroda will be in focus after a sharp 6% decline in the sectoral index yesterday; a relief rally is expected.
• Aviation Stocks: Air India has announced 78 additional international flights to manage passenger flow amidst the West Asia disruptions, which may impact sentiment for the broader aviation sector.
• JK Tyre & Industries: The company has entered the renewable energy space with a 26% stake acquisition in Fourth Partner Energy and Sunpulse Power.
• BMW Industries: The company has partnered with Indian Oil Corporation (IOCL) for natural gas solutions.
• Zaggle Prepaid Ocean Services: Announced a partnership with Blue Star to provide expense management solutions.

Key Events to Watch Today

• West Asia De-escalation: Any further statements regarding the U.S.-Iran situation will remain the primary driver for global volatility.
• Crude Oil Volatility: Investors will monitor if Brent crude sustains its stay below the $90 mark.
• IPO Activity: Subscriptions continue for Innovision Ltd and Rajputana Stainless, while Srinibas Pradhan Constructions' IPO closes today.
• Weekly Expiry Prep: Traders will be positioning themselves for the upcoming weekly options expiry amid heightened volatility (India VIX is currently at 23.36).

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

Tags: Pre-Market Stock Market Nifty Sensex Market Update