Global Market Cues

Overnight, Wall Street presented a divided front as investors rotated out of high-growth technology names into defensive sectors. The tech-heavy Nasdaq Composite tumbled 1.51% to close at 22,904.58, while the S&P 500 shed 0.51% to finish at 6,882.72. In contrast, the Dow Jones Industrial Average managed a gain of 0.53%, closing at 49,501.30, supported by value and healthcare stocks like Amgen.

• Tech Rout: Advanced Micro Devices (AMD) plunged over 17% following a disappointing revenue forecast, dragging down the semiconductor and broader software sectors.
• AI Disruption: Concerns regarding AI-based automation tools, specifically following recent productivity tool launches by startups like Anthropic, continued to weigh on software and outsourcing-linked stocks.
• Commodities: Brent crude prices remained soft, trading near $68.71 per barrel, providing some relief to oil-importing nations like India. Gold prices hovered around $4,953 per ounce internationally.
• Asian Markets: Early trade in Asia was mixed; Japan’s Nikkei 225 saw marginal gains, while South Korea’s Kospi dropped over 1.3% tracking the U.S. tech weakness.

GIFT Nifty and Domestic Cues

The GIFT Nifty is currently trading around the 25,865.50 level, suggesting a steady to positive start for the Nifty 50 compared to its previous close of 25,776. However, Indian IT ADRs like Infosys and Wipro saw sharp declines of up to 5.5% in the U.S. session, which is expected to exert pressure on the domestic IT index today.

• Institutional Activity: On Wednesday, Foreign Institutional Investors (FIIs) were net buyers to the tune of ₹5,236.28 crore, while Domestic Institutional Investors (DIIs) also remained net buyers with ₹1,014.24 crore.
• RBI Policy: The Reserve Bank of India’s (RBI) three-day monetary policy meeting is in its second day. While a rate hike is not widely expected, investors are closely watching for the Governor’s commentary on inflation and the impact of the recent India-US trade deal.
• Trade Deal Optimism: Goldman Sachs recently upgraded India’s real GDP growth forecast for CY26 to 6.9%, citing the positive impact of reduced reciprocal tariffs between India and the USA.

Key Stocks in Focus

Several heavyweights and mid-cap stocks are expected to see high volatility today based on earnings and corporate developments.

• IT Majors (TCS, Infosys, Wipro): Under pressure following the 1.5% drop in the Nasdaq and a steep sell-off in Indian IT ADRs.
• Tata Power & Trent: In focus as investors react to their quarterly earnings reports and future growth guidance.
• Mahindra & Mahindra: Positive sentiment expected after the company secured a significant export order for 2026.
• Marico: The company is in the news for its recent acquisition of a stake in a prominent wellness brand.
• Apollo Tyres & Cummins India: To be watched following their latest financial results.

Key Events to Watch Today

• RBI MPC Meeting: Day 2 of the rate-setting panel's deliberations; the final decision is due tomorrow.
• U.S. Economic Data: Release of Initial Jobless Claims and the JOLTs Job Openings report later today will provide cues on the U.S. labor market.
• Plastindia 2026: One of the world’s largest plastics exhibitions begins today in New Delhi, which may bring focus to the chemicals and petrochemicals sectors.

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

Tags: Pre-Market Stock Market Nifty Sensex Market Update