Pre-Market Update: Nifty 50, Sensex to Open Lower on July 13 as U.S.-Iran Tensions Lift Crude Oil Prices

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Monday, July 13, tracking weak global cues. Escalating tensions between the U.S. and Iran have raised concerns over possible disruptions in crude oil supplies through the Strait of Hormuz, impacting investor sentiment.

At around 7:43 AM, the GIFT Nifty was trading near 24,042, indicating a gap-down opening of nearly 200 points compared with the previous close of Nifty futures. Asian markets traded mixed, while U.S. stock futures declined as investors remained cautious over rising inflation concerns and expectations of higher interest rates.

Geopolitical tensions remained elevated after the U.S. reportedly expanded military strikes on multiple locations across southern and western Iran. Meanwhile, uncertainty over the Strait of Hormuz continued, with Iran claiming the key shipping route has been shut, while the U.S. maintained that the waterway remains open.

South Korean memory chip maker SK Hynix made a strong debut on the Nasdaq. Its U.S.-listed shares surged 12.76 per cent to close at USD 168.01 after the company raised more than USD 26 billion through American Depositary Receipts (ADRs), priced at USD 149 each.

U.S. Treasury yields moved higher as rising crude oil prices increased inflation concerns and raised expectations of tighter monetary policy. The 2-year Treasury yield climbed to 4.24 per cent, its highest level since February 2025, while the 10-year yield increased to 4.58 per cent.

Japanese government bond yields declined as investors moved towards safer assets. The 10-year JGB yield fell to 2.735 per cent, the 20-year yield eased to 3.710 per cent, and the 5-year yield declined to 1.970 per cent.

Crude oil prices surged amid concerns over potential supply disruptions through the Strait of Hormuz. Brent crude gained 3.88 per cent to USD 78.96 per barrel, while WTI crude advanced 4.01 per cent to USD 74.27 per barrel.

Gold prices declined as stronger inflation expectations and higher interest rate concerns reduced demand for the precious metal. Spot gold fell 1.2 per cent to USD 4,072.78 per ounce, while U.S. gold futures declined 0.8 per cent to USD 4,081.70 per ounce. Spot silver also dropped 1.6 per cent to USD 58.89 per ounce.

The U.S. dollar strengthened against major currencies amid geopolitical uncertainty and inflation concerns. The U.S. Dollar Index (DXY) stood at 101.07 after gaining 0.2 per cent.

From the derivatives perspective, the Put-Call Ratio (PCR) for the Nifty July series stood at 1.27. On the put side, significant open interest addition was seen at the 24,200 strike, while major open interest concentration remained at 23,000 and 24,000 strikes. On the call side, the highest open interest addition was seen at the 24,700 strike, while maximum open interest was concentrated at the 24,600 strike.

The Nifty 50 closed at 24,206.90 on Friday, extending its recovery and moving above key short- and medium-term moving averages. The index needs to decisively cross 24,400 to confirm a sustained uptrend towards 24,600-24,800. Immediate support is placed at 24,000, followed by the crucial 23,800 level. Technical indicators, including RSI, MACD and bullish candlestick patterns, indicate improving momentum, although range-bound movement may continue until a breakout.

Foreign Institutional Investors (FIIs) remained net buyers on July 10, purchasing equities worth Rs 2,603.72 crore. Domestic Institutional Investors (DIIs) also bought shares worth Rs 2,019.68 crore during the session.

L&T Technology Services (LTTS) reported a 17.05 per cent year-on-year increase in profit to Rs 1,468.6 crore. Revenue grew 17.96 per cent to Rs 11,608 crore, EBIT increased 27.9 per cent to Rs 1,799.3 crore, and EBIT margin improved to 15.5 per cent from 14.3 per cent. Dollar revenue increased 6.1 per cent to USD 1,223.5 million.

Avenue Supermarts (DMart) reported an 11.3 per cent rise in profit to Rs 860.4 crore. Revenue increased 14.9 per cent to Rs 18,794.5 crore, while EBITDA grew 15.4 per cent with margin improving to 7.97 per cent.

L&T Finance posted a 28.7 per cent jump in profit to Rs 902.5 crore, while net interest income increased 28.4 per cent to Rs 2,924.8 crore.

Adani Green Energy's operational capacity increased 27 per cent to 20,142 MW, while energy sales grew 30 per cent to 13,657 MU.

Keystone Realtors reported a 42 per cent decline in pre-sales to Rs 617 crore, while collections increased 4 per cent to Rs 599 crore.

Fino Payments Bank reported a 31 per cent rise in new accounts opened to 3.13 lakh, while average deposits increased 11 per cent to Rs 2,755 crore.

Mankind Pharma approved the sale of its 100 per cent stake in Broadway Hospitality Services for Rs 49 crore as part of its non-core asset divestment strategy.

Lux Industries announced a Rs 600 crore investment to establish a new manufacturing facility at Dankuni, West Bengal.

RITES secured a Rs 79.22 crore consultancy contract from Patna Metro Rail Corporation through a consortium.

JSW Energy's subsidiary JEPEL secured a Rs 443.74 crore Battery Energy Storage System (BESS) order for a 200 MW/400 MWh project from Bondada Renewable Energy.

State Bank of India (SBI) Funds Management reduced its IPO size to Rs 9,812.9 crore after raising Rs 1,880 crore through a pre-IPO placement.

Powerica won a 50 MW wind power project from GUVNL at a tariff of Rs 3.51 per unit.

Innovision received a Letter of Acceptance worth Rs 27.52 crore from NHAI for toll collection and maintenance services in Tamil Nadu.

NTPC board approved an investment of Rs 20,456.7 crore for the Lara Super Thermal Power Project Stage III comprising two 800 MW units.

NMDC revised iron ore prices, with Baila Lump at Rs 5,450 per tonne and Baila Fines at Rs 4,700 per tonne effective July 10.

Sterlite Technologies received a favourable outcome after the European Patent Office revoked Fujikura's patent, resolving the patent dispute in its favour.

Pace Digitek subsidiary Lineage Power signed an MoU with Bondada Renewable Energy for supplying Battery Energy Storage Systems.

Power Grid Corporation received a Letter of Intent for the Krishnagiri REZ Phase-I transmission project under the TBCB route.

Swiggy obtained a modified FSSAI licence after addressing observations related to licence particulars. The company stated there were no food safety concerns.

Jindal Steel CEO Gautam Malhotra resigned, with his resignation effective from July 15.

Hitech Corporation shareholders reappointed Malav Dani as Managing Director for another five-year term.

InterGlobe Aviation (IndiGo) received a warning from DGCA over cargo handling SOP deviations. The company stated there would be no material financial or operational impact.

Kaynes Technology remains under the F&O ban for July 13.

On Friday, Indian equity markets ended with strong gains. The Sensex jumped 827.57 points or 1.08 per cent to close at 77,569.39, while the Nifty 50 gained 244.10 points or 1.02 per cent to settle at 24,206.90.

Wall Street ended higher on Friday, supported by Semiconductor stocks ahead of the quarterly earnings season. The Dow Jones Industrial Average gained 0.29 per cent to 52,637.01, the S&P 500 advanced 0.42 per cent to 7,575.39, and the Nasdaq Composite rose 0.29 per cent to 26,281.61.

For the week, the S&P 500 gained 1.2 per cent, Nasdaq increased 1.7 per cent, while the Dow Jones declined 0.5 per cent. Nvidia gained 4.03 per cent, Advanced Micro Devices rose 2.04 per cent, and Meta Platforms advanced 5.97 per cent. Micron Technology declined 1.24 per cent, while Moderna fell 10.83 per cent.

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