Nifty, Sensex Hop at Pre-open Suggesting a Jump-Start for Benchmark Indices

Mumbai, June 25: Indian shares rose at pre-opensignalling a higher start for benchmarks as Asian shares hopped on tech optimism and oil continued its slide to trade around pre-Iran war levels.

Nifty 50 rose 0.4% while Sensex increased 0.6% at pre-open. Gift Nifty traded 0.5% higher.

Indian equities have been on a strong run, with the Nifty 50 and Sensex rising in seven of the last nine sessions, supported by lower crude prices.

Spotlight will be falling on Jubilant Pharmova, ICICI Bank and LIC.

Jubilant Pharmova is expected to get a boost after a substantial cut in a tax demand imposed on its subsidiary.

ICICI Bank is seen advancing its insurance ambitions with regulatory approval to increase ownership in its life insurance unit.

LIC faces a leadership change in its finance function as CFO Sunil Agrawal prepares to step down next month.

As for global cues, Asian equities advanced sharply on Thursday after upbeat earnings and forecasts from chipmakers Micron and Qualcomm reinforced optimism around artificial intelligence demand, while falling oil prices added to the risk-on mood.

South Korea’s KOSPI jumped about 5%, while Japan’s Nikkei climbed nearly 4%. MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1.4%, reflecting broad-based buying across regional markets.

Investors largely looked past recent geopolitical tensions and focused instead on improving earnings prospects, resilient technology demand and the prospect of lower energy costs supporting economic growth.

The retreat in crude prices also helped temper inflation concerns, boosting expectations that major central banks could eventually gain room to ease monetary policy.

U.S. equities closed lower overnight as investors reassessed valuations across technology stocks and weighed the outlook for interest rates.

The S&P 500 and Nasdaq Composite both ended in the red, with semiconductor and AI-linked stocks facing pressure amid concerns that heavy spending on artificial intelligence infrastructure could take longer than expected to generate returns.

Investors also remained cautious ahead of key economic data and further guidance from Federal Reserve officials. Uncertainty surrounding the timing of future rate cuts prompted some profit-taking in high-growth sectors that have led much of this year’s market advance.

Despite the weak finish on Wall Street, futures stabilised in Asian trading hours, helping contain negative sentiment.

European equities ended little changed in the previous session as investors assessed developments in U.S.-Iran negotiations and the implications of lower commodity prices.

The pan-European STOXX 600 index closed broadly flat, with gains in rate-sensitive sectors offset by weakness among energy and mining stocks as oil and metal prices retreated.

Source:

• Exchanges