Indian Shares Hop at Pre-open as Markets Eye Strong Start After TCS Results

Mumbai, July 10: Indian shares jumped at pre-open on Friday signalling a positive start for benchmarks as Tata Consultancy Services exceeded revenue estimates which will likely boost sentiment for IT stocks. 

Nifty 50 rose 0.7% and Sensex advanced 0.8% while Gift Nifty increased 0.7%.  

The Nifty and the BSE Sensex each gained about 0.3% on Thursday, recovering modestly after tumbling nearly 2% in the previous session.  

Spotlight will be falling on IT stocks as well as Mahindra & Mahindra, which reported a 30% year-on-year jump in June production to 110,796 units, compared with 85,232 units in the corresponding month last year. Anand Rathi Wealth reported higher revenue and net profit for the June quarter. Muthoot Microfin said its assets under management expanded 18% year-on-year as of June 30. Havells India announced its entry into the battery energy storage business through a strategic partnership with Norway-based Pixii AS. 

As for global cues, Asian markets traded largely higher on Friday, extending the global rebound after investors judged that the latest flare-up between the US and Iran was unlikely to significantly derail the global economy. 

As for global cues, technology shares led the advance in Asia, supported by optimism over artificial intelligence spending and sustained demand for semiconductors. Softer crude oil prices also improved sentiment by easing concerns that a prolonged spike in energy costs could rekindle inflationary pressures and hurt corporate profitability. 

Despite the upbeat mood, investors remained watchful of geopolitical developments. Japan’s Nikkei climbed 1.8%, while South Korea’s Kospi surged 4.1%. MSCI’s broadest index of Asia-Pacific shares outside Japan, however, slipped 0.19%. 

US stocks ended sharply higher on Thursday, recouping losses from the previous session as investors returned to technology shares. 

The Nasdaq Composite outperformed the broader market, lifted by gains in semiconductor stocks led by Micron Technology, reinforcing optimism over continued artificial intelligence-led capital spending. The S&P 500 and the Dow Jones Industrial Average also closed higher as risk appetite improved. 

Micron Technology rallied 4.5% after unveiling plans to invest more than $250 billion in the US by 2035 to expand memory chip manufacturing and meet surging demand driven by artificial intelligence. 

European equities also ended in positive territory, with the pan-European STOXX 600 index rebounding as technology shares recovered from recent weakness. 

Semiconductor stocks and other growth-oriented companies led gains, mirroring the strength seen on Wall Street. Investors largely looked beyond geopolitical tensions, focusing instead on improving corporate earnings prospects and the long-term growth potential of AI-related businesses. 

The gains reflected investors’ willingness to selectively add risk despite lingering uncertainty over developments in the Middle East. 

Crude oil prices edged lower on Friday after climbing sharply earlier in the week, offering some relief to equity investors. 

Brent crude traded around $76 per barrel, while US West Texas Intermediate hovered below $73. Despite the decline, both benchmarks remained on track to post weekly gains of around 5-6% as concerns over potential supply disruptions in the Middle East continued to support prices. 

The pullback came after no immediate disruption to oil exports materialised despite heightened tensions involving Iran. Nevertheless, traders remained alert, as any escalation affecting the Strait of Hormuz could quickly tighten global supplies. 

The strategic waterway carries nearly one-fifth of the world’s oil shipments, making it a critical chokepoint for global energy markets. Any disruption could send crude prices sharply higher and reignite inflation concerns worldwide. 

Source: Exchanges