Pre-open Trade Signals Weak Start for Nifty, Sensex as Iran, Oil Weigh on Sentiment

Mumbai, June 3: Indian shares traded lower at pre-open signalling a weak start for benchmark indices as reports of hostilities in Iran war dimmed hopes of peace in the Middle East and oil prices climbed further denting sentiment.

Nifty 50 traded 0.3% lower at pre-open while the Sensex was down 0.4%, in step with the Gift Nifty futures which traded at 23,460.50, which is below Nifty 50’s previous close of 23,483.55.

To be sure, foreign investors kept fleeing the Indian markets even yesterday when the benchmarks ended a four-session losing streak to end higher.

Spotlight will be falling on IT companies that have been rising in recent sessions as a wave of AI optimism sweeps global markets. IT companies include TCS, Infosys, Tech Mahindra and Wipro. 

Spotlight will specifically be also falling on Infosys, which expanded its strategic partnership with Norway’s largest lender, DNB Bank, to modernise and strengthen the bank’s financial crime prevention and compliance operations. 

Also in focus will be John Cockerill India and Advait Energy Transitions. John Cockerill India and its subsidiaries secured an order worth Rs 1,250-1,300 crore from JSW Vijayanagar Metallics, providing a boost to the engineering and industrial equipment maker’s order book.

Advait Energy Transitions said its subsidiary has signed an agreement with Gujarat Urja Vikas Nigam for the development of a standalone Battery Energy Storage System (BESS) project with a total capacity of 150 MW/300 MWh.

Asian markets traded largely higher in early deals, led by a 2.6% jump in Japan’s Nikkei. Taiwan’s Taiex climbed 1.8%, South Korea’s Kospi gained 0.15%, while the MSCI Asia Pacific ex-Japan index rose 0.3%. The upbeat sentiment followed a strong overnight session in the United States, where investors shrugged off concerns over geopolitical tensions and elevated oil prices to focus on earnings and technology-led growth prospects. Hong Kong’s Hang Seng was the lone major laggard, slipping 1.5%.

U.S. equities finished modestly higher on Tuesday, with semiconductor and technology stocks driving gains.

Investor sentiment was boosted after Hewlett Packard Enterprise delivered upbeat earnings and highlighted strong demand for AI infrastructure. The commentary reignited enthusiasm for the artificial intelligence theme, triggering broad-based buying in chipmakers and technology companies. The Philadelphia Semiconductor Index surged nearly 6%, emerging as one of the strongest-performing segments of the market.

The rally reinforced expectations that corporate spending on AI infrastructure, data centres and advanced computing technologies will remain robust, supporting growth across the global technology ecosystem.

European equities also ended higher, with the pan-European STOXX 600 index gaining around 0.7%.

Technology shares led the advance after semiconductor company STMicroelectronics raised its outlook for data-centre-related revenues, strengthening confidence in the sustainability of AI-led demand. The optimism spilled over to other technology-linked names, with Infineon Technologies and Schneider Electric among the notable gainers.

The move underscored growing investor conviction that spending on AI infrastructure and digitalisation will remain resilient despite lingering macroeconomic uncertainties.

Source:

• Exchanges