Pre-Market Update: Sensex, Nifty 50 Likely to Open Weak; Ola Electric, Wipro, NHPC Among Stocks in Focus

Pre-Market Update at 7:45 AM: Indian benchmark indices Sensex and Nifty 50 are expected to open on a subdued note on Tuesday, June 2, amid mixed global cues and continued uncertainty surrounding U.S.-Iran peace negotiations. Investor sentiment remains cautious despite record highs on Wall Street, as concerns over geopolitical tensions and elevated crude oil prices continue to weigh on market sentiment.

Gift Nifty was trading near the 23,261 level, indicating a cautious start for domestic equities. Most Asian markets traded lower in early deals, while U.S. markets ended higher overnight, with both the S&P 500 and Nasdaq Composite closing at record levels.

Developments in the Middle East continue to influence global market sentiment. While the United States has indicated significant progress toward a potential peace agreement with Iran, reports suggest that Tehran has suspended peace talks following Israel's military operations in Lebanon and southern Beirut. Investors are closely monitoring further developments as any escalation could impact crude oil prices and global risk sentiment.

Commerce and Industry Minister Piyush Goyal stated that India and the United States are close to finalising the first phase of a Bilateral Trade Agreement (BTA). According to the minister, only a few minor issues remain unresolved before the agreement can be concluded, raising hopes of stronger trade ties between the two nations.

India's fiscal deficit stood at Rs 3.62 lakh crore in April, compared to Rs 1.86 lakh crore in the corresponding period last year. The deficit represents 21.4 per cent of the full-year FY27 target of Rs 16.96 lakh crore, reflecting higher government expenditure during the month.

India's Index of Industrial Production (IIP) grew 4.9 per cent year-on-year in April under the revised series with 2022-23 as the base year. However, the growth rate was lower than the 5.7 per cent expansion recorded in April 2025, indicating some moderation in industrial activity.

Gold prices remained largely steady as investors assessed the impact of the partial ceasefire between Hezbollah and Israel while awaiting further clarity on U.S.-Iran peace negotiations. Spot gold traded at USD 4,484.49 per ounce, while spot silver rose 0.2 per cent to USD 74.92 per ounce.

Crude oil prices retained most of their recent gains amid uncertainty over Middle East developments and concerns regarding the Strait of Hormuz. Brent crude was up 0.06 per cent at USD 95.04 per barrel, while WTI crude slipped 0.18 per cent to USD 91.99 per barrel.

The U.S. dollar remained range-bound, with the dollar index holding steady at 99.17 as traders tracked geopolitical developments.

Derivative positioning suggests traders remain cautious ahead of the weekly expiry. The Put-Call Ratio (PCR) for the June series stood at 0.48. On the put side, the highest open interest among the nearest out-of-the-money strikes was concentrated at the 23,000 strike, indicating a key support zone.

On the call side, significant open interest addition was observed at the 23,600 strike, while the highest open interest among the nearest out-of-the-money calls was concentrated at the 24,000 strike. This suggests that 24,000 is likely to act as a major resistance level in the near term.

Technically, the immediate support for Nifty 50 is placed at 23,263, which marks the lower boundary of the index's recent 15-session trading range. A decisive close below this level could trigger further weakness and potentially drag the index towards 22,436.

On the upside, any short-covering rally may face resistance near the 50-day moving average around 23,687. A sustained move above the 20-day moving average near 23,800 would be required to improve the short-term outlook and revive bullish momentum. With weekly expiry scheduled for Tuesday, volatility is expected to remain elevated.

Among stock-specific developments, Force Motors reported a 15.35 per cent year-on-year decline in May total sales to 2,614 units. Domestic sales fell 14.72 per cent, while exports dropped 37.21 per cent. NMDC posted a 19.9 per cent rise in iron ore production to 5.31 million tonnes, although sales declined 6.9 per cent to 4.04 million tonnes.

Alkem Laboratories is likely to remain in focus as promoters Samprada and Nanhamati Family Trust plan to sell up to a 1.5 per cent stake through a block deal at a floor price of Rs 5,200 per share. Ola Electric Mobility launched a Qualified Institutional Placement (QIP) with a floor price of Rs 37.74 per share.

Wipro announced that its subsidiary, Wipro IT Services, will acquire an additional 20 per cent stake in Aggne Global Inc. PNC Infratech received a Letter of Acceptance worth Rs 194.4 crore from the Lucknow Development Authority for a flyover project, while Black Box entered into a strategic partnership with AIONOS to accelerate enterprise AI transformation and infrastructure deployment.

Equitas Small Finance Bank received RBI approval for Mirae Asset Mutual Fund to acquire up to a 9.5 per cent stake in the lender. Canara Bank will also remain on investors' radar after the government appointed Brajesh Kumar Singh as Managing Director and Chief Executive Officer.

NHPC is likely to see action after the government announced plans to sell up to a 6 per cent stake through an Offer for Sale (OFS) at a floor price of Rs 71 per share. Anant Raj unveiled plans to invest around Rs 25,000 crore in data centres and cloud services in Haryana.

SoftTech Engineers partnered with BMC to launch CivitTWIN, India's first AI-powered Digital Approval Twin platform for building permits, while Fino Payments Bank joined hands with Ezee.ai to implement AI-enabled lending and collections solutions. Cochin Shipyard saw the government extend the additional charge of Chairman and Managing Director held by Finance Director Jose V. J. for another three months. Protean eGov Technologies also announced that Ajay Rajan has assumed charge as Managing Director and Chief Executive Officer from June 1.

In the derivatives segment, Amber Enterprises India and Kaynes Technologies remain under the Futures and Options (F&O) ban for June 2.

Institutional activity remained mixed. Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 3,911.68 crore, while Domestic Institutional Investors (DIIs) purchased shares worth Rs 5,109.13 crore.

Indian equity benchmarks extended losses for the fourth consecutive trading session on Monday amid concerns over elevated crude oil prices and the lack of a breakthrough in the U.S.-Iran conflict. The Sensex declined 508.40 points, or 0.68 per cent, to close at 74,267.34, while the Nifty 50 fell 165.15 points, or 0.70 per cent, to settle at 23,382.60.

Meanwhile, Wall Street ended higher overnight. The Dow Jones Industrial Average rose 46.42 points, or 0.09 per cent, to 51,078.88. The S&P 500 advanced 19.90 points, or 0.26 per cent, to 7,599.96, while the Nasdaq Composite gained 114.19 points, or 0.42 per cent, to close at 27,086.81.

Among major technology stocks, Nvidia surged 6.26 per cent and Microsoft gained 2.28 per cent. Amazon declined 3.47 per cent, Apple fell 1.84 per cent, AMD lost 1.16 per cent, Intel dropped 4.67 per cent, Alphabet slipped 1.02 per cent and Meta Platforms declined 5.07 per cent. Elsewhere, Qualcomm plunged 8.8 per cent, while Micron Technology rallied 6.6 per cent. ServiceNow jumped 9.2 per cent, IBM gained 7.6 per cent, and Tesla ended 4.57 per cent lower.

With weekly expiry scheduled for Tuesday, traders are expected to closely monitor developments in the Middle East, crude oil prices, institutional flows and key technical levels for further market direction.