Pre-open Points to Positive Start for Benchmarks After Four-session Rally

Mumbai, July 7: Indian shares rose at pre-open on Tuesday signalling a positive start for benchmarks as business updates boost confidence ahead of the earnings season.

Nifty 50 rose 0.15% and the Sensex advanced 0.13% at pre-open while Gift Nifty increased 0.3%.

Both benchmarks have risen for four sessions in a row, aided by easier oil and business updates.

Among individual stocks, Titan will be in focus after the jewellery-to-watches major reported a robust 41% year-on-year growth in its consumer business for the June quarter, driven by strong festive demand for jewellery. Trent may come under pressure after the apparel retailer posted a 19% rise in standalone revenue for the quarter, missing Street expectations. Brokerages said the growth was weaker than anticipated despite a favourable base.

Meanwhile, Jubilant FoodWorks reported a 14.1% year-on-year increase in consolidated revenue for the June quarter, while its flagship Domino’s India business delivered like-for-like sales growth of 2.5%.

As for global cues, Asian equities came under pressure despite a stronger-than-expected earnings outlook from Samsung Electronics, underscoring investor caution after a sharp rally in global stocks. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.4%, while Japan’s Nikkei declined 1.3%. South Korea’s Kospi tumbled about 6%, weighed down by profit-taking in technology shares.

The subdued sentiment comes even as enthusiasm around artificial intelligence continues to support the broader technology sector. Investors remain wary of elevated valuations in semiconductor stocks and are closely tracking geopolitical developments and the global interest rate outlook. Meanwhile, the Japanese yen hovered near multi-decade lows against the U.S. dollar, adding to uncertainty in regional markets.

U.S. equities ended higher overnight, with technology stocks driving gains as investors grew increasingly optimistic that artificial intelligence-led spending will power a robust second-quarter earnings season.

The Nasdaq Composite climbed 1.12%, outperforming its peers, while the S&P 500 advanced 0.72% and the Dow Jones Industrial Average added 0.29%.

Despite the upbeat session, investors remain cautious ahead of key U.S. economic data and comments from Federal Reserve officials, which could offer fresh clues on the trajectory of interest rates.

European shares ended lower on Monday after briefly scaling fresh record highs, as investors locked in profits following last week’s strong rally.

The pan-European STOXX 600 index fell 0.35% to close at 650.5 after touching an all-time intraday high of 654.44. The decline came despite a sharp rally in easyJet shares following reports of a $7.34 billion take-private proposal.

Crude oil prices edged higher in Asian trading after retreating sharply over the past fortnight. Brent crude traded above $72 a barrel as investors shifted their focus from geopolitical tensions to expectations of higher OPEC+ production and the outlook for global demand.

For India, the world’s third-largest crude importer, the relatively moderate level of oil prices is a positive, helping ease concerns over imported inflation and pressure on the current account.

Source: Exchanges