Pre-Market Update: Nifty 50 Likely to Open Higher as GIFT Nifty Gains 116 Pts; L&T, Tata Capital, Graphite India in Focus

Indian benchmark indices, Sensex and Nifty 50, are expected to begin Wednesday, July 29, on a positive note, with GIFT Nifty indicating a gap-up opening. Investors are closely tracking the U.S. Federal Reserve’s interest rate decision, ongoing Q1 FY27 earnings, crude oil movement, and developments around the U.S.-Iran conflict.

Asian markets traded higher on Wednesday, while U.S. stocks ended mostly flat in the previous session. At 7:32 AM, GIFT Nifty was trading around 24,207, up 116 points from the previous close of Nifty futures, signalling a positive start for domestic equities.

Crude oil prices recovered on Wednesday after witnessing a sharp decline in the previous sessions. Brent crude futures gained $2.71, or 3.2 per cent, to $86.80 per barrel, while U.S. West Texas Intermediate (WTI) crude increased by $2.26, or 3.4 per cent, to $81.95 per barrel. The recovery came after the U.S. and Iran suspended hostilities and following a larger-than-expected decline in U.S. crude inventories.

Market participants continue to monitor geopolitical developments as tensions remain elevated in the Middle East. The U.S. military stated that it had intercepted what it described as an Iranian attempted surprise attack targeting American troops in the region. Meanwhile, Iran-backed militias in Iraq reportedly launched drones targeting oil facilities in Saudi Arabia’s Eastern Region for the second consecutive day. Saudi Arabia’s Defence Ministry confirmed interception of the attack but did not disclose any damage to oil facilities. Iran has denied involvement.

The key global trigger for markets today is the U.S. Federal Reserve’s monetary policy decision. Investors will closely watch Fed Chairman Kevin Warsh’s comments during the press conference. According to CME FedWatch data, futures indicate nearly a 70 per cent probability that the Fed will maintain interest rates in the 3.5 per cent–3.75 per cent target range.

More than 100 companies are scheduled to announce their Q1 FY27 earnings on Wednesday. Major companies reporting results include Larsen & Toubro, Adani Enterprises, Adani Ports and Special Economic Zone, Asian Paints, Eicher Motors, Waaree Energies, Bajaj Housing Finance, and Dabur India.

Gold prices slipped ahead of the U.S. Fed decision, with bullion trading near $4,020 per ounce after declining 1.1 per cent in the previous session. Market expectations of interest rate changes remained uncertain, with swaps indicating around a 33 per cent probability of a 25 basis point rate hike. Higher interest rates generally weigh on gold prices as the metal does not provide interest income. Gold has declined nearly 25 per cent since the beginning of the U.S.-Iran conflict but continues to hold above the key $4,000 per ounce level due to buying interest at lower levels.

In derivatives data for the July F&O expiry, the Nifty 50 Put-Call Ratio (PCR) stood at 0.92. On the Put side, major open interest addition was seen at the 24,000 strike, which also witnessed significant open interest concentration. On the Call side, fresh open interest addition was observed between the 24,000 and 24,700 strikes, with the highest concentration at the 24,000 strike.

Technically, the Nifty 50 may face immediate resistance at 24,027, followed by 24,047 and 24,080. A sustained move above 24,050 could push the index towards the 24,200–24,300 zone, with the 200-day EMA near 24,400 acting as the next major hurdle.

On the downside, immediate support is placed at 23,961, followed by 23,940 and 23,907. The broader support zone remains between 23,900 and 23,800. The index continues to trade above its 50-day EMA, indicating that the broader trend remains positive, while a move above the 10-day and 20-day EMAs will be important for further momentum.

Among stocks in focus, Larsen & Toubro reported a 14 per cent year-on-year rise in consolidated profit at Rs 4,123 crore, while revenue increased 7 per cent to Rs 67,942 crore. However, EBITDA declined 3 per cent and margin fell to 9 per cent from 9.9 per cent. The company’s group order inflows increased 14 per cent to Rs 1.08 lakh crore, with the Order Book standing at Rs 7.79 lakh crore.

Tata Capital reported a 56 per cent jump in Q1 profit to Rs 1,547 crore, while total income increased 23 per cent to Rs 4,455 crore. Assets under management grew 22 per cent to Rs 2.90 lakh crore.

Phoenix Mills posted a 23.3 per cent rise in Q1 profit to Rs 296.9 crore, while revenue increased 12.8 per cent to Rs 1,074.9 crore. Paradeep Phosphates reported a 23.9 per cent increase in profit to Rs 392.5 crore, with revenue rising 36 per cent to Rs 6,124.3 crore. The company also approved an investment of around Rs 250 crore for setting up an Aluminium Fluoride plant.

Birlasoft’s Q1 profit surged 51.3 per cent to Rs 161 crore, while revenue grew 7.4 per cent to Rs 1,379.4 crore. DCM Shriram reported more than six-fold growth in profit to Rs 692.8 crore, supported by exceptional gains of Rs 79.42 crore and a Tax write-back of Rs 418.02 crore. Revenue increased 9.5 per cent to Rs 3,784.7 crore.

VST Industries reported a 24.4 per cent decline in Q1 profit to Rs 42.4 crore, while revenue fell 13.9 per cent to Rs 256.5 crore. RPG Life Sciences posted a 17 per cent rise in profit to Rs 30.8 crore, with revenue increasing 15.8 per cent to Rs 195.7 crore. Sanofi Consumer Healthcare India reported a 13.3 per cent rise in Q2 profit to Rs 68.8 crore, while revenue grew 6.7 per cent to Rs 235.7 crore.

Graphite India remains in focus after the U.S. Department of Commerce preliminarily imposed a 3.68 per cent countervailing duty on exports of large-diameter graphite electrodes from the company.

Rail Vikas Nigam (RVNL) received a Rs 358.97 crore EPC contract from East Central Railway for doubling works between Kundawa Chainpur and Raxaul. Life Insurance Corporation of India appointed Shatmanyu Shrivastava as Chief Financial Officer effective July 28. NTPC received a six-month extension for CMD Gurdeep Singh’s tenure from August 1, 2026.

Euro Panel Products commissioned a new 2.2 MW Solar plant in Surat, increasing its total solar capacity to 3.6 MW. The company expects captive solar energy to meet 50 per cent of its factory power requirements.

In bulk deals, Societe Generale sold 5.22 lakh shares of Gandhar Oil Refinery India, representing a 0.53 per cent stake, worth Rs 12.62 crore. Pine Oak Global Fund acquired an additional 0.98 per cent stake in Aqylon Nexus, while Sera Investments & Finance India sold a 0.73 per cent stake. Nova Global Opportunities Fund PCC – Touchstone bought 20 lakh shares of Asian Granito India, representing a 0.67 per cent stake worth Rs 12 crore. Axis Bank sold 34.33 lakh units of Raajmarg Infra Investment Trust at Rs 116.50 per unit in a Rs 40 crore bulk deal.

No stock is under the F&O ban list for Wednesday, July 29.

Foreign Institutional Investors (FIIs) remained net buyers on July 28, purchasing equities worth Rs 755.33 crore. Domestic Institutional Investors (DIIs) also bought shares worth Rs 1,664.16 crore during the session.

On Tuesday, the Nifty 50 and Sensex ended almost flat with a negative bias as investors remained cautious ahead of the Fed decision. The Nifty 50 declined 10.60 points, or 0.04 per cent, to close at 23,987.60, while the Sensex fell 69.86 points, or 0.09 per cent, to settle at 76,765.92. Bank Nifty declined 0.58 per cent, while India VIX dropped 1.74 per cent to close below 12.5.

On Wall Street, the S&P 500 ended slightly higher as gains in Boeing and Coca-Cola offset weakness in Semiconductor stocks. The S&P 500 gained 0.21 per cent to close at 7,428.78, while the Dow Jones Industrial Average advanced 1.03 per cent to 52,747.32. The Nasdaq Composite declined 0.22 per cent to end at 24,876.91.

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