Global Market Cues

Overnight, US markets retreated from near-record highs as a selloff in technology shares dominated the session. The Nasdaq Composite dropped 1.43% to 23,255.19, while the S&P 500 fell 0.84% and the Dow Jones Industrial Average slipped 0.34%. Sentiment was dampened by a disappointing sales forecast from Advanced Micro Devices (AMD) and a massive 20% plunge in PayPal shares following weak 2026 profit guidance. Geopolitical risks also resurfaced after the US Navy reported shooting down an Iranian drone in the Arabian Sea, though the early end to the US government shutdown provided some cushion to the indices.

• US indices ended lower; Nasdaq led the decline with a 1.4% drop.
• Tech giants and chipmakers faced pressure following AMD’s weak outlook.
• PayPal shares crashed 20% on disappointing earnings and guidance.
• Crude oil prices edged higher toward $75/barrel on rising Middle East tensions.
• US government shutdown concerns eased as Congress approved a $1.2 trillion funding bill.

GIFT Nifty and Domestic Cues

GIFT Nifty is currently trading around the 25,813 level, indicating a negative start for the Indian benchmark indices with a potential gap-down of about 70-90 points. This follows a historic Tuesday where the Nifty 50 surged 2.55% and the Sensex jumped over 2,000 points to close at 83,739.13. The domestic rally was fueled by the landmark India-US trade deal, which reduced reciprocal tariffs on Indian goods from 25% to 18%. While the long-term outlook remains boosted by this deal, the domestic market may see profit-taking today in line with global peers.

• GIFT Nifty indicates a cautious open, trading down approximately 0.3%.
• Domestic markets are coming off their best single-day performance since May 2025.
• FIIs were net buyers on Tuesday, injecting over ₹5,200 crore into the cash market.
• The Indian Rupee strengthened significantly on Tuesday, closing at 90.27 per dollar.

Key Stocks in Focus

Earnings season continues to be a primary driver for individual stock movements, with several heavyweights slated to report today.

• Bajaj Finserv & Trent: Major players in the financial and retail sectors reporting Q3 results today.
• Adani Enterprises: Infrastructure and energy focus as the group announces its quarterly performance.
• NHPC & Cummins India: Key stocks to watch in the power and engineering space following their earnings release.
• Apollo Tyres: Expected to see volatility as it reports Q3 numbers amid fluctuating raw material costs.
• IT Stocks (TCS, Infosys, Wipro): Likely to trade with a negative bias following the tech rout on the Nasdaq.

Key Events to Watch Today

Market participants will keep a close eye on corporate earnings and further details emerging from the India-US trade agreement.

• Q3 Earnings Slate: High-impact results from Bajaj Finserv, Trent, Adani Enterprises, and NHPC.
• Trade Deal Reaction: Continued sectoral impact on textiles, leather, and manufacturing following the tariff cuts.
• Geopolitical Updates: Monitoring the situation in the Arabian Sea and its impact on global oil supply chains.
• US Macro Data: Investors are looking ahead to labor market data later this week for clues on the Federal Reserve's rate path.

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

Tags: Pre-Market Stock Market Nifty Sensex Market Update