Pre-Open Trade Signals Higher Start For Sensex, Nifty Following Friday’s Crash

Mumbai, June 1:Indian shares traded higher at pre-open signalling a positive start for benchmark indices after the crash on Friday following MSCI’s index rebalancing.

Nifty 50 rose 0.23% at pre-open while the Sensex increased 1% even as Gift Nifty futures traded at 23,707, which is way higher than Nifty 50’s Friday close of 23,547.75.

US President Donald Trump said on Friday that he would soon decide on a proposed agreement to extend the ceasefire with Iran, although significant differences remained between the two sides on key issues at the heart of the conflict.

Spotlight will be falling on the country’s largest airline IndiGo, oil marketing firms and textile companies. On Friday, IndiGo had reported a loss, weighed down by capacity restrictions, rupee weakness and higher operating costs.

Oil marketing companies may remain in the spotlight after the government reduced export duties on petrol, diesel and aviation turbine fuel for the fortnight beginning June 1.

Textile stocks could also see action after the government scrapped customs duties on cotton imports for five months, a move aimed at supporting exporters and easing raw material costs.

As for global cues, Japan’s Nikkei 225 rose nearly 1%, South Korea’s Kospi jumped over 4%, while Taiwan’s benchmark index gained 1.8% as investors piled into technology and semiconductor stocks on expectations of sustained demand for AI infrastructure and advanced chips.

The upbeat sentiment in Asia followed another record-setting session on Wall Street on Friday.

The Dow Jones Industrial Average rose 0.72%, while the S&P 500 and Nasdaq Composite gained 0.22% and 0.21%, respectively, with technology stocks once again leading the charge.

U.S. equity futures were modestly higher during Asian trading hours, indicating a measured continuation of the recent rally.

Dow futures gained 0.7%, while S&P 500 futures rose 0.3% and Nasdaq futures added 0.5%.

Crude oil prices remained firmly in focus after a sharp rally triggered by escalating tensions in the Middle East.

Brent crude climbed above $93 a barrel after Israel expanded military operations in Lebanon, stoking concerns about a broader regional conflict. Reports that Iran had deployed additional naval mines near the Strait of Hormuz, a key global oil transit route, further heightened fears of potential supply disruptions.

The jump in oil prices has prompted investors to reassess inflation risks globally, overshadowing concerns about slowing economic activity in China.

Source:

• Exchanges