Global Market Cues

The global backdrop for the Indian market is decidedly bearish this morning. Overnight, Wall Street saw a mixed but cautious session; while the Nasdaq managed a marginal gain of 0.1% thanks to a 9% surge in Oracle, the Dow Jones Industrial Average fell by 289 points (0.6%). The primary concern for global investors is the escalating conflict involving the US, Israel, and Iran, which has directly impacted energy supplies.

• Crude Oil Spike: Brent crude prices have jumped nearly 7% to trade around $98.77 per barrel after reports of attacks on tankers near the Strait of Hormuz and in Iraqi waters.
• Asian Markets: Major Asian indices are trading deep in the red. Japan’s Nikkei 225 is down 1.6%, Australia’s ASX 200 has shed 1.5%, and South Korea’s Kospi is trading 0.75% lower.
• IEA Intervention: The International Energy Agency (IEA) has announced a record release of 400 million barrels of oil from emergency reserves, but the move has so far failed to cool the market as supply disruption fears dominate.

GIFT Nifty and Domestic Cues

GIFT Nifty is currently signaling a weak start for Dalal Street. As of 7:30 AM IST, GIFT Nifty futures were trading around the 23,800 level, indicating a gap-down start of approximately 130 to 150 points for the Nifty 50. This follows a brutal Wednesday session where the Sensex plummeted over 1,300 points and the Nifty 50 closed down 1.63% at 23,867.

• Volatility: The India VIX (Volatility Index) surged by 11% yesterday to 20.99, suggesting that traders expect significant swings in the coming sessions.
• Institutional Flows: Foreign Institutional Investors (FIIs) remain in sell mode, offloading shares worth ₹6,267.30 crore on Wednesday, while Domestic Institutional Investors (DIIs) provided some cushion with a net purchase of ₹4,965.50 crore.

Key Stocks in Focus

• Reliance Industries: The company is in the spotlight following the announcement of a massive $300 billion partnership with the US (Trump administration) to build the "America First Refining" project in Texas, marking the first major new US refinery in 50 years.
• Wipro: The IT major has secured a multi-year contract from a US-based insurance provider to modernize its retirement services business through technology and operations transformation.
• Jindal Saw: Shares will remain in focus after gaining nearly 20% recently, buoyed by the Union Cabinet's approval of the Jal Jeevan Mission 2.0 extension with an enhanced outlay of ₹8.69 lakh crore.
• Dilip Buildcon: The company has received a Letter of Intent (LOI) worth ₹1,850 crore from REC Power Development for a sub-station project in Karnataka.
• Infosys: The tech giant has announced a new collaboration with Incora to provide AI-driven supply chain solutions.

Key Events to Watch Today

• India Macro Data: The government will release the Consumer Price Index (CPI) inflation and Industrial Production (IIP) data for February later today.
• Geopolitical Developments: Any further updates regarding the security of shipping lanes in the Strait of Hormuz will be critical for oil-sensitive markets like India.
• US Economic Sentiment: Investors will continue to digest the US February CPI data (2.4%) as they gauge the Federal Reserve's next move amidst the energy shock.

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

Tags: Pre-Market Stock Market Nifty Sensex Market Update