The Indian stock market opened on a strong note on Monday, with Sensex gaining 72 points or 0.09% during the pre-opening bell, showing significant improvement from earlier expectations. According to latest market data, GIFT Nifty on the NSE IX traded lower by 3 points, or 0.01%, at 24,352, signaling that Dalal Street was headed for a muted start. However, Gift Nifty was trading around 24,129 level, a premium of nearly 130 points from the Nifty futures' previous close, indicating a more positive opening than initially anticipated. This represents a substantial upgrade from the cautious opening outlook reported earlier, with Gift Nifty previously trading around 24,346 level, indicating a discount of nearly 6 points from the Nifty futures' previous close. The trends on Gift Nifty also signal a steady start for the frontline indices, Nifty 50 and Sensex today, building on the positive momentum from Friday's session.
World equity markets remained upbeat with Asian markets trading higher, led by a rally in semiconductor stocks on renewed optimism over AI-driven demand. According to latest reports, Japan's Nikkei 225 gained 2.02%, and the Topix rose 0.77%, while South Korea's Kospi rallied 3.74% and the Kosdaq Index jumped 5.33%. Hong Kong's Hang Seng Index advanced 0.45%, while mainland China's CSI 300 gained 0.33%. US stock market ended with decent gains, fuelled by a rally in chip stocks, with the Dow Jones Industrial Average rising 0.27% to 52,487.41, while the S&P 500 gained 0.81% to 7,543.66 and the Nasdaq closed 1.30% higher at 26,206.89. The rally was driven by a broad-based rebound in semiconductor stocks, with the sector's benchmark ETF gaining more than 2%, as investors looked ahead to South Korean chipmaker SK Hynix's highly anticipated Nasdaq debut.
Metals, power, and auto sectors emerged as the top performers in the pre-opening session, driving the overall market gains. According to latest data, metals jumped by 0.10%, power zoomed by 0.19%, and auto surged by 0.22% during the pre-opening trading. Syrma SGS Technology Ltd, Choice International Ltd, and Voltamp Transformers Ltd emerged as the top gainers on BSE in the pre-opening session. Syrma SGS Technology Ltd surged 4.45% to trade at ₹1,423.40 apiece, while Choice International Ltd gained 2.73% to trade at ₹790.10 apiece and Voltamp Transformers Ltd advanced 2.49% to trade at ₹9,613.50 apiece.
The U.S.-Iran situation has remained stable with diplomatic engagement progressing and no major disruptions reported, as noted by analysts. According to Ponmudi R, geopolitical concerns have continued to recede as the U.S.-Iran situation remains stable, with the easing of tensions having reduced concerns over energy supply risks in the Middle East, underpinning investor confidence across global markets. European markets recovered with the pan-European STOXX 600 rising around 0.8%, as investors assessed the evolving geopolitical situation in the Middle East. Major continental indices ended broadly higher, with Germany's DAX and France's CAC 40 each gaining around 0.9%, while London's FTSE 100 slipped marginally by about 0.2%. The recovery was supported by easing crude oil prices after reports suggested that Iran had called for renewed diplomatic talks, helping to alleviate immediate concerns over potential supply disruptions following the latest US-Iran war escalation.
On the domestic front, Nifty 50 continues to exhibit a cautious near-term technical structure after failing to sustain above its immediate resistance zone. According to Ponmudi R, immediate support for Nifty 50 is placed in the 23,800 – 23,900 zone, while resistance is seen around 24,200 – 24,300. He believes a sustained move above this range could pave the way for a recovery towards the 24,600 level. However, with geopolitical tensions in the Middle East remaining fluid, investors are likely to treat the recent rebound with caution rather than view it as a definitive trend reversal. Crude oil prices and further developments in the region will remain key drivers of market sentiment throughout the session, as noted by Ponmudi R. Momentum indicators also remain supportive, with the Relative Strength Index (RSI) hovering near the 61 mark, indicating strengthening bullish momentum while remaining comfortably below overbought territory.
The Q1 FY27 earnings season commences from July 9, with TCS set to announce on July 9, marking the beginning of the corporate earnings cycle. As reported by Santosh Meena, Head of Research at Swastika Investmart Ltd, investor attention will centre on the commencement of the Q1 FY27 earnings season from July 9, with the initial batch of corporate earnings and management commentary expected to provide valuable insights into demand conditions, margin trends, and earnings visibility. Market participants will closely monitor these developments for directional cues, with last week seeing the Dow Jones rally nearly 2%, while the S&P 500 and Nasdaq Composite surged 1.8% and 2.1% respectively. Several banks reported their Q1FY27 business updates over the weekend, with HDFC Bank's gross advances growing 15.4% and deposits increasing 14.7% YoY, Axis Bank's gross advances rising 18.8% and total deposits growing 18.2%, while Kotak Mahindra Bank reported 15.1% growth in net advances.
