Global Market Cues

Overnight, US markets concluded Monday's trading session at record highs, extending their rally. The Dow Jones Industrial Average climbed 1% to close at 43,819.27, while the S&P 500 advanced 0.5% to 6,173.07, and the tech-heavy Nasdaq Composite gained 0.5% to 20,273.46. This strong performance was primarily driven by optimism surrounding a potential US-China trade deal and encouraging economic data. Technology giants like NVIDIA, Alphabet, and Amazon were among the top performers.

In contrast, European markets largely closed lower on Monday as investors assessed the impact of US tariffs on major trading partners. The Euro Area's main stock market index, the EU50, fell 0.38% to 5305 points. The pan-European Stoxx 600 declined 0.42%, with Germany's DAX losing 0.51%, France's CAC 40 down 0.33%, and the UK's FTSE 100 dropping 0.43%.

Asian markets are set for a cautious open this morning. Equity-index futures pointed to a decline in Tokyo, with the Nikkei 225 falling 0.9% at the open, amid renewed tariff threats against Japan. Hong Kong markets are closed for a public holiday. While some Asian indices advanced on Monday following Wall Street's lead, broader uncertainty over global tariff agendas continues to influence sentiment.

GIFT Nifty and Domestic Cues

GIFT Nifty futures are trading approximately 26 points higher on Tuesday morning, indicating a slightly positive start for the Indian benchmark indices. This comes after the NIFTY50 snapped its four-day winning streak on Monday, closing 120 points lower and slipping below the 25,600 mark, facing resistance at higher levels.

Options data for the current weekly expiry suggests a strong resistance level for NIFTY50 at 26,000, while robust support is observed around the 25,500 mark. Market experts anticipate a period of consolidation for the Nifty following its recent rally. There are no stock market holidays in July 2025, other than the regular weekends.

Key Stocks in Focus

• Technology and Financials: Given the strong performance of AI-centric tech stocks and the positive stress test results for major US banks, Indian counterparts in these sectors could see some positive momentum.
• Infrastructure/Manufacturing: NTPC is scheduled to commence operations of its 660 MW Unit #3 at Barh Stage-I from July 1, 2025, potentially bringing its shares into focus.
• Renewable Energy: Premier Energies has commissioned a 1.2 GW TOPCon solar cell line in Hyderabad, which could draw attention to solar sector stocks.
• Cement: UltraTech Cement has started operations at a new 1.8 mtpa grinding unit, potentially impacting its stock.

Key Events to Watch Today

• Global Trade Developments: Ongoing discussions and potential announcements regarding US trade tariffs will remain a key global and domestic market driver.
• US Jobs Report: The highly anticipated US jobs report is scheduled for release on Thursday, July 3rd, and will be closely watched for cues on global economic health and potential Federal Reserve interest rate decisions.

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

Tags: Pre-Market Stock Market Nifty Sensex Market Update