Pre-Market Update: Nifty 50 Likely to Open Lower; GIFT Nifty Down 25 Points

Indian benchmark indices Sensex and Nifty 50 are likely to open lower on Thursday, August 13, amid mixed Asian markets, weaker U.S. stock futures and continued uncertainty around the U.S.-Iran conflict. As of 7:27 AM, GIFT Nifty was trading around 24,445, indicating a discount of 25 points to the previous Nifty futures close and pointing to a flat-to-negative start.

Investors will track the latest domestic inflation data, crude oil prices, global markets, U.S. inflation, geopolitical developments and the ongoing Q1 FY27 earnings season. India’s July Consumer Price Index (CPI) inflation rose to 4.45 per cent, with food inflation at 5.52 per cent and core inflation at 3.9 per cent. While inflation remained within the RBI’s tolerance band, it was above the central Bank’s 4 per cent target and could keep rate-sensitive sectors under watch.

The Securities and Exchange Board of India (SEBI) has also issued a circular reviewing the use of historical scenarios for stress testing in commodity derivatives. The move is expected to be neutral to positive for commodity-market risk management and related market infrastructure. Separately, SEBI said it found no evidence of manipulation in the recently introduced Closing Auction Session and is seeking broader participation, a development that could support confidence in closing-price discovery.

Global markets received some support from softer-than-expected U.S. inflation. U.S. CPI increased just 0.1 per cent month-on-month in July, easing concerns over an imminent Federal Reserve rate hike. The softer inflation reading could support technology and growth stocks while improving risk appetite toward emerging markets. Wall Street ended mixed on Wednesday, August 12, with the S&P 500 rising 0.3 per cent and Nasdaq gaining 0.5 per cent, while the Dow Jones Industrial Average ended nearly flat.

Crude oil prices declined by more than USD 1 on Thursday as analysts lowered their forecasts for global oil demand in 2026. Brent crude futures fell USD 1.29, or 1.5 per cent, to USD 87.69 a barrel, while WTI crude declined USD 1.30, or 1.6 per cent, to USD 81.97 a barrel. Prices also came under pressure after U.S. commercial crude inventories recorded their biggest weekly increase since January 2023, partly due to a sharp fall in exports. However, concerns over potential supply disruptions linked to the Middle East conflict continued to limit the downside.

OPEC has lowered its 2026 global oil demand growth estimate, while the International Energy Agency has projected a contraction in consumption. Lower crude prices could provide some relief to oil-consuming sectors such as aviation and paints, although prolonged geopolitical tensions remain a key risk for energy markets.

The U.S.-Iran conflict remains another major factor for global markets. There has been limited progress toward reopening the strategic waterway, while U.S. President Donald Trump has claimed Washington has total control over the conduit. U.S.-Iran talks appear to have stalled, with both sides maintaining hardline positions. Pakistan, which has been involved in mediation efforts, said the broader peace process had stalled, although the deadline for a memorandum of understanding could still be extended. The Middle East conflict, alongside the Russia-Ukraine war and attacks on energy infrastructure, ports and refineries, continues to create uncertainty for global crude and refined-product supplies.

The Q1 FY27 earnings season remains active, with more than 570 companies scheduled to report their April-June quarter results on Thursday. Tata Motors Passenger Vehicles, LG Electronics India, Honasa Consumer, Max Financial Services and General Insurance Corporation of India are among the companies scheduled to announce their results.

Gold prices remained largely stable around USD 4,400 an ounce after softer U.S. inflation reduced immediate concerns over a Federal Reserve rate hike. Spot gold was down 0.1 per cent at USD 4,403.02 an ounce in early trading after gaining 0.9 per cent on Wednesday.

In the derivatives market, the Put-Call Ratio for the August 18 expiry stood at 0.75. On the Put side, significant open interest addition was seen at the 24,300 strike, while the highest open interest concentration was at 24,000. On the Call side, notable open interest addition was recorded at 24,400, while significant open interest concentration was seen at 25,000.

For the Nifty 50, immediate support is placed at 24,360, which also coincides with the 20-day EMA. A break below this level could bring 24,250 into focus, while a decisive move below 24,250 may intensify selling pressure toward 24,000. On the upside, the 24,500-24,600 zone is expected to act as an immediate hurdle. Pivot-based resistance levels are placed at 24,471, 24,520 and 24,599, while supports are at 24,312, 24,264 and 24,184. Technically, the Nifty 50 formed a small-bodied red candle with a long lower shadow on Wednesday, indicating buying interest at lower levels. However, weakening momentum indicators suggest that the index could remain range-bound with a cautious bias.

Among stocks to watch, UltraTech Cement could remain in focus as Pilani Investment and Industries Corporation is likely to sell 17 lakh shares, representing a 0.6 per cent stake, through a block deal estimated at around Rs 1,909 crore. The floor price is reportedly set at Rs 11,481 per share.

Jio Financial Services will be in focus after Bank of America Corporation agreed to acquire up to 49.9 per cent in JFSL’s wholly owned NBFC lending subsidiary Jio Credit. The investment could total up to Rs 18,268 crore.

Vascon Engineers has received a Letter of Intent worth Rs 126.39 crore from the Public Works Department for the development of a 300-bed general hospital in Wardha, Maharashtra.

Apollo Hospitals Enterprise reported a 38.4 per cent YoY increase in Q1 profit to Rs 610.4 crore, while revenue rose 20.6 per cent to Rs 7,043.5 crore. Tata Motors reported an 83.2 per cent YoY jump in Q1 profit to Rs 2,560 crore, with revenue increasing 19.3 per cent to Rs 20,667 crore.

GMR Airports reported a Q1 profit of Rs 91 crore against a loss of Rs 211.6 crore a year earlier, while revenue increased 23.7 per cent to Rs 3,964 crore. Gujarat Pipavav Port reported a 41.8 per cent rise in profit to Rs 147.9 crore and a 32.6 per cent increase in revenue to Rs 331.8 crore.

Lenskart Solutions reported a 269.2 per cent YoY surge in Q1 profit to Rs 221.8 crore, while revenue grew 43.3 per cent to Rs 2,714.2 crore. Sun TV Network posted a 16.95 per cent increase in profit to Rs 618.8 crore, with revenue rising 13 per cent to Rs 1,457.9 crore.

Astral reported a 51.8 per cent increase in Q1 profit to Rs 120.2 crore, while revenue rose 15.9 per cent to Rs 1,578 crore. Abbott India reported a 17.1 per cent increase in profit to Rs 428.5 crore, while revenue grew 4.3 per cent to Rs 1,813.7 crore.

Petronet LNG reported a 35.1 per cent increase in Q1 profit to Rs 1,137.1 crore despite a 53.2 per cent decline in revenue to Rs 5,557.8 crore. IRCTC reported broadly flat Q1 profit at Rs 330.2 crore, while revenue increased 18.1 per cent to Rs 1,369.5 crore. IRCON International reported a 43.6 per cent decline in Q1 profit to Rs 92.7 crore despite a 9.5 per cent increase in revenue to Rs 1,955.8 crore.

LICI, Manappuram Finance, SAIL and Bandhan Bank are under the F&O ban for Thursday, August 13.

Institutional activity remained mixed on Wednesday. Foreign Institutional Investors were net sellers of equities worth Rs 1,002.50 crore, while Domestic Institutional Investors bought shares worth Rs 5,841.66 crore.

The Indian market extended its losing streak to a second session on Wednesday, with both benchmark indices witnessing sharp Intraday volatility. The Sensex briefly fell nearly 1 per cent before recovering most of its losses to close 188 points, or 0.24 per cent, lower at 77,966.35. The Nifty 50 ended at 24,435.95, down 36 points, or 0.15 per cent.

Overall, Indian markets are likely to begin Thursday’s session with a cautious to negative bias. Investors will track the 24,360 support level on the Nifty 50, movements in crude oil prices, developments in the U.S.-Iran conflict, global equity cues, institutional flows and the large set of Q1 FY27 earnings due during the day.

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