Pre-Market Update: Nifty 50 Eyes Muted Start on June 9; NLC India OFS, Grasim Industries, HCL Technologies, Rail Vikas Nigam in Focus

Pre-Market Update at 7:40 AM: Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a subdued note on Tuesday, June 9, amid mixed global cues. Although geopolitical tensions in the Middle East showed signs of easing overnight, investors remain cautious due to elevated crude oil prices and persistent global uncertainty.

Gift Nifty was trading near the 23,130 level, around 44 points below the previous close of Nifty futures, indicating a muted start for domestic equities. Asian markets advanced in early trade, while Wall Street ended mixed on Monday, supported by gains in Semiconductor stocks.

Investor sentiment improved slightly after Iran and Israel indicated that hostilities had paused following an appeal from U.S. President Donald Trump. However, Iran warned that it would respond if Israel resumes strikes against Hezbollah in Lebanon. Iranian President Masoud Pezeshkian also reiterated that Tehran remains open to negotiations despite the recent exchange of missile attacks with Israel.

In another development, a U.S. federal judge struck down the USD 100,000 fee imposed on new H-1B visas by the Trump administration, ruling that the charge amounted to an unauthorized Tax that had not been approved by Congress. The U.S. dollar remained close to a two-month high, with the dollar index holding at 100.03 after touching 100.21 during the previous session.

Gold prices declined for a third straight session as rising U.S. Treasury yields reduced the appeal of the precious metal. Spot gold slipped 0.2 per cent to USD 4,319.98 per ounce, while spot silver fell 0.6 per cent to USD 67.84 per ounce. Crude oil prices edged higher as markets continued to monitor developments in the Middle East. Brent crude futures gained 0.14 per cent to USD 94.38 per barrel, while U.S. West Texas Intermediate crude rose 0.12 per cent to USD 91.41 per barrel.

From a derivatives perspective, the Put-Call Ratio (PCR) stands at 0.64, indicating a cautious market undertone. On the put side, significant open interest concentration was seen at the 23,000 strike, making it an important support level. On the call side, fresh open interest addition was witnessed at the 23,200 strike, while the highest open interest among nearby out-of-the-money strikes was concentrated at 23,500 and 24,000.

Technically, the 23,000-23,100 zone remains a critical support area for the Nifty 50. A decisive break below this range could trigger further weakness towards 22,700 and subsequently 22,550. On the upside, immediate resistance is placed around 23,350, while the key hurdle lies in the 23,550-23,600 zone. A sustained move above this range would be required to revive bullish momentum. Until then, the broader trend remains weak with volatility expected to remain elevated ahead of the weekly expiry.

Among stock-specific developments, NLC India will remain in focus after the Government of India announced plans to sell up to a 3 per cent stake through an offer-for-sale. The floor price has been fixed at Rs 303 per share. The issue opens for non-retail investors on June 9 and retail investors on June 10.

IRB Infrastructure Developers reported a 25 per cent year-on-year rise in toll revenue to Rs 843 crore in May, compared with Rs 672 crore a year earlier. Panacea Biotec launched the DENSTAR project to support licensing and global adoption of its dengue vaccine, DengiAll, with funding support from the EU-backed GH EDCTP3 JU programme.

Grasim Industries approved an investment of Rs 3,094 crore for Phase II expansion of its Lyocell manufacturing capacity at Harihar, Karnataka, adding 110 KTPA capacity. HCL Technologies launched an AI Innovation Zone with Google Cloud in California to help enterprises scale artificial intelligence applications.

Rail Vikas Nigam received a Letter of Acceptance for an EPC contract worth Rs 221.33 crore from South East Central Railway. JNK India secured a large international order valued between Rs 100 crore and Rs 300 crore from CC7 Emirates Engineering Solutions LLC, UAE, for waste gas handling systems.

JSW Energy commissioned its wind blade manufacturing facility at Halol, Gujarat, strengthening its vertical integration strategy in the renewable energy business. Bharti Airtel and Vodafone Idea may see investor attention after the Bombay High Court struck down the Centre's one-time spectrum charge, providing regulatory relief to telecom operators.

Amber Enterprises India and Kaynes Technologies remain under the futures and options ban list for June 9.

Foreign Institutional Investors (FIIs) remained net sellers on June 9, offloading equities worth Rs 5,555.67 crore. Domestic Institutional Investors (DIIs) provided support by purchasing shares worth Rs 5,165.24 crore.

Indian equity benchmarks ended sharply lower on Monday amid renewed Middle East tensions, rising crude oil prices and concerns over a potential U.S. interest rate hike. The Sensex declined 719.08 points, or 0.97 per cent, to close at 73,524.26, while the Nifty 50 fell 243.70 points, or 1.04 per cent, to settle at 23,123.00.

U.S. markets closed on a mixed note on Monday. The Dow Jones Industrial Average fell 80.77 points, or 0.16 per cent, to 50,786.01. The S&P 500 rose 21.99 points, or 0.30 per cent, to 7,405.73, while the Nasdaq Composite gained 220.23 points, or 0.86 per cent, to finish at 25,929.66.

Technology stocks led the gains, with Nvidia rising 1.73 per cent, AMD surging 5.14 per cent, Intel jumping 11.2 per cent and Broadcom advancing 2.82 per cent. Microsoft declined 1.18 per cent, while Apple slipped 1.89 per cent. Tesla outperformed the broader market, rallying 4.59 per cent during the session.

Disclaimer: The article is for informational purposes only and not investment advice.

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