Pre-Market Update: Nifty 50 to Likely to Open 100 Points Higher; Tata Capital, ITI, Cyient Among 10 Stocks to Watch on June 12

Pre-Market Update at 7:42 AM: Indian benchmark indices Sensex and Nifty 50 are likely to open on a positive note on Friday, supported by strong global cues after reports suggested a possible easing of tensions between the U.S. and Iran. Investor sentiment improved after U.S. President Donald Trump reportedly called off planned military strikes against Iran, boosting risk appetite across global markets.

As of 7:27 AM, GIFT Nifty was trading near the 23,502 mark, around 100 points above the previous close of Nifty futures, indicating a firm start for domestic equities. Asian markets rallied sharply, while Wall Street recorded its strongest single-day gains since April 8.

Geopolitical developments remain in focus after President Trump announced that planned military action against Iran had been suspended following progress in high-level discussions. However, tensions in the Gulf region remain elevated after another tanker, MV Jalveer, was attacked near Oman, marking the third such incident in four days. India also lodged a strong protest with the U.S. after a recent strike on a tanker in the Gulf of Oman led to the death of three Indian seafarers.

On the macroeconomic front, U.S. producer inflation accelerated in May. The Producer Price Index (PPI) rose 1.1 per cent month-on-month, above expectations of 0.7 per cent. On an annual basis, producer prices increased 6.5 per cent, the highest level since November 2022.

The European Central Bank (ECB) raised its key deposit rate by 25 basis points to 2.25 per cent, marking its first interest rate hike in nearly three years and becoming the first major central bank to tighten policy in response to economic disruptions linked to the U.S.-Iran conflict.

According to the World Bank's latest Global Economic Prospects report, India is expected to remain the fastest-growing major economy, with GDP growth projected at 6.6 per cent in FY2026-27. However, this is lower than the estimated 7.7 per cent growth recorded in the previous fiscal year.

Crude oil prices continued to decline after the cancellation of planned military action against Iran. Brent crude futures fell 1.3 per cent to USD 89.17 per barrel, while WTI crude declined 1.4 per cent to USD 86.48 per barrel. For the week, Brent and WTI have fallen 4.2 per cent and 4.4 per cent, respectively.

Gold prices edged lower and were on track for a weekly decline amid persistent inflation concerns and expectations of further Federal Reserve rate hikes. Spot gold slipped 0.3 per cent to USD 4,200.82 per ounce, while U.S. gold futures for August delivery gained 2.6 per cent to USD 4,222.10 per ounce.

The U.S. dollar stabilized after touching a one-week low. The greenback gained 0.1 per cent against the Japanese yen to 160.07, while the euro traded at USD 1.1576. The British pound remained largely unchanged at USD 1.3414.

For the June expiry series, the Put-Call Ratio (PCR) stood at 0.92. On the put side, significant open interest concentration was visible at the 23,000 strike, making it an important support level. On the call side, fresh open interest addition was seen at the 23,600 strike, while the highest open interest remained concentrated at the 24,000 strike.

Technically, the 23,000-23,100 zone remains a crucial support area for the Nifty 50. A decisive close below 23,000 could trigger fresh selling pressure and drag the index towards 22,800 and 22,700 levels. On the upside, immediate resistance is placed at 23,304, which coincides with the 8-day EMA, followed by a stronger hurdle near 23,542, close to the 20-day DMA. The broader trading range remains between 23,070 and 23,560.

Among stock-specific developments, Tata Capital allotted Non-Convertible Debentures worth Rs 2,030 crore through private placement. Ratnaveer Precision Engineering plans to raise Rs 330 crore through a rights issue. ITI Limited received approval from BSE and NSE for listing 19.65 lakh preferential shares issued to promoters.

GNG Electronics remained in focus after a promoter sold a 3.9 per cent stake, reducing shareholding to 74.77 per cent. Cyient fixed June 17 as the record date for its Rs 720 crore share buyback, while Edelweiss Financial Services closed its Rs 3,000 crore NCD issue ahead of schedule due to strong investor demand.

SP Apparels entered into a GBP 4 million loan agreement with its U.K. subsidiary. Shares of Vedanta Iron and Steel, the demerged entity, are scheduled to list on exchanges on June 15. Dabur India informed that the U.S. FDA issued Import Alert 66-40 for its Silvassa facility, though the company expects negligible impact on operations and financial performance. Federal Bank launched 'FCNR Max', a new FCNR(B) deposit product aimed at NRI customers.

Kaynes Technologies remains under the F&O ban for June 12.

Foreign Institutional Investors (FIIs) remained net sellers on June 11, offloading equities worth Rs 1,987 crore. Domestic Institutional Investors (DIIs) were net buyers and purchased shares worth Rs 4,224.51 crore.

Indian equity benchmarks ended lower on Thursday after a highly volatile trading session. The Nifty 50 slipped below the 23,200 mark amid broad-based selling pressure, although pharma, private banking and media stocks managed to outperform. The Sensex declined 150.63 points, or 0.20 per cent, to close at 73,832.55, while the Nifty 50 fell 53.35 points, or 0.23 per cent, to settle at 23,161.60.

U.S. markets ended sharply higher on Thursday after President Trump announced the cancellation of planned military strikes against Iran, easing geopolitical concerns. Investor sentiment was also supported ahead of the expected market debut of Elon Musk's SpaceX.

The Dow Jones Industrial Average surged 929.97 points, or 1.86 per cent, to 50,848.75. The S&P 500 advanced 127.31 points, or 1.75 per cent, to 7,394.30, while the Nasdaq Composite jumped 640.16 points, or 2.54 per cent, to close at 25,809.66.

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

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