Pre-Market Report: Relief Rally Expected with Massive Gap-Up Following US-Iran De-escalation

Global Market Cues

The global sentiment has shifted from panic to relief after US President Donald Trump announced a five-day pause on military strikes against Iranian infrastructure, citing "productive conversations." This development sparked a sharp late-session rally in the US on Monday.

• US Markets: Wall Street indices staged a robust recovery. The Dow Jones Industrial Average gained 1.38%, the S&P 500 rose 1.15%, and the Nasdaq Composite settled 1.4% higher.
• Asian Markets: Taking cues from the US, Asian markets opened Tuesday on a strong note. Japan's Nikkei 225 surged over 2%, while South Korea's Kospi advanced by more than 1%.
• Commodities: Crude oil prices, which had spiked on Monday, saw a cooling effect. Brent crude slipped below the $100-per-barrel mark, trading near $99.90, providing significant relief to oil-importing nations like India.

GIFT Nifty and Domestic Cues

The GIFT Nifty is currently trading around the 22,900 level, indicating a gap-up start of approximately 380 points for the Nifty 50. This follows a brutal session on Monday where the Sensex plummeted 1,836 points and the Nifty 50 crashed 601 points due to geopolitical fears.

• Volatility: India VIX surged over 17% on Monday to 26.73, but is expected to cool off today as the immediate threat of war recedes.
• Institutional Activity: Foreign Institutional Investors (FIIs) were heavy sellers on Monday, offloading equities worth over ₹10,400 crore, while Domestic Institutional Investors (DIIs) provided some support with net purchases of ₹12,034 crore.

Key Stocks in Focus

Several stocks are expected to see high activity today due to corporate developments and sector-specific news.

• HDFC Bank: The stock hit a 52-week low on Monday and remains in focus following the resignation of its Chairman, Atanu Chakraborty, amid discussions on board governance.
• Coal India: The state-owned major has announced an in-principle decision to dilute up to 25% stake in its subsidiary, South Eastern Coalfields Ltd (SECL), via an Offer for Sale (OFS).
• Tata Motors: The company has announced a price hike for its passenger vehicles effective April 1, 2026, to offset rising input costs.
• InterGlobe Aviation (IndiGo): The board has approved the appointment of Aloke Singh as the Chief Strategy Officer, effective April 6.
• Bonus Issues: Kilitch Drugs (India) and Times Green Energy (India) will trade ex-bonus today in a 1:1 ratio.
• F&O Ban: SAIL and Samman Capital remain in the F&O ban period for today's session.

Key Events to Watch Today

Investors should keep a close eye on these events as they could influence market direction during the session.

• Geopolitical Updates: Any further statements regarding the US-Iran five-day pause will be critical for sustaining the relief rally.
• IPO Activity: Three new IPOs—Amir Chand Jagdish Kumar (Exports), Powerica, and Sai Parenteral—open for subscription today.
• IPO Closures: The IPO of Central Mine Planning & Design Institute (CMPDI) enters its final day of subscription.
• Crude Oil Volatility: Continued monitoring of Brent crude prices as they hover around the psychological $100 mark.

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

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