Shares Edge Down at Pre-Open Signalling Negative Bias at The Start of Trade

Mumbai, May 27: Indian shares traded lower at pre-open on Wednesday suggesting a negative bias at the start for benchmark indices as Iran accused the US of violating ceasefire with new strikes.

Moreover, Israel launched more than 120 air strikes across Lebanon on Tuesday in one of the most intense bombardments in recent weeks, according to reports. Iran, meanwhile, has pushed for a halt to Israeli attacks in Lebanon as part of any broader agreement.

Nifty 50 traded 0.2% lower at pre-open while the Sensex declined 0.11%, with the Gift Nifty futures trading at 23,897, which is below Nifty’s Tuesday close of 23,913.7 points.

Oil prices slipped to trade at $98 per barrel.

The spotlight will fall on Coal India after the government announced plans to sell up to a 2% stake in the state-run miner through an offer for sale at ₹412 per share, representing a discount of nearly 10% to the stock’s previous closing price.

Spotlight will also fall on Oil and Natural Gas Corporation, Siemens, and Indian Railway Catering and Tourism Corp. Oil and Natural Gas Corporation reported modest earnings while Siemens declared a decline and Indian Railway Catering and Tourism Corp saw a fall in profit.

As for global cues, Asian equities advanced sharply in early trade, with Japan leading the charge after the Nikkei climbed to fresh all-time highs. The rally was powered by strong buying in semiconductor and AI-related counters, with shares of Tokyo Electron and Advantest surging amid continued enthusiasm surrounding the global technology theme.

The bullish momentum spilled over into other regional markets including South Korea and Taiwan, as investors largely looked past lingering geopolitical tensions in the Middle East. MSCI’s broadest index of Asia-Pacific shares outside Japan jumped more than 2%, highlighting a strong revival in risk appetite across the region.

The positive undertone in Asia followed a robust overnight session in the US, where the Nasdaq and S&P 500 closed at record highs. Gains were led by semiconductor companies and heavyweight technology stocks as the AI-driven rally continued to gather pace.

The Philadelphia Semiconductor Index also scaled an all-time high, reinforcing optimism around sustained demand for chips and AI infrastructure.

Investor sentiment in the US was further supported by hopes that diplomatic engagement between Washington and Tehran could continue despite recent military escalation in the region. Reports of possible backchannel peace talks helped calm nerves over the risk of a broader conflict, encouraging investors to rotate back into equities.

Technology shares remained the primary beneficiaries of the improved sentiment globally.

Unlike the sharp rally seen in Asia and the US, European markets remained subdued. Major regional indices traded largely flat as investors weighed geopolitical uncertainties and the inflationary risks associated with elevated crude oil prices.

Source:

• Exchanges