Pre-Market Update: Sensex, Nifty 50 Set for Weak Start; Here are the Key Factors Driving Markets Today

Pre-Market Update at 7:45 AM: Indian benchmark indices Sensex and Nifty 50 are expected to open on a weak note on Wednesday, June 3, amid mixed global cues and rising geopolitical tensions in the Middle East. Investor sentiment remains cautious as the renewed conflict between the U.S. and Iran has reduced hopes of a near-term ceasefire, while foreign institutional selling continues to weigh on market mood.

Gift Nifty was trading around 23,468, indicating a softer start for domestic equities despite positive closing trends on Wall Street. Asian markets traded mixed, with Japan's benchmark index touching a record high, while U.S. equities ended marginally higher overnight.

Geopolitical developments remain one of the biggest factors influencing market sentiment. The U.S. military said it intercepted several Iranian missile and drone attacks in the Gulf region and conducted defensive strikes on Iran's Qeshm Island. At the same time, U.S. Central Command dismissed Iranian claims that its forces had targeted major American military installations in the region. The escalation has increased uncertainty across global financial markets and supported higher crude oil prices.

The latest U.S. Job Openings and Labor Turnover Survey (JOLTS) showed a sharp increase in job vacancies during April. Open positions rose by 731,000 to 7.618 million, marking the largest monthly increase in five years and the highest level since May 2024. The stronger labour market data has reinforced expectations that the U.S. Federal Reserve could maintain higher interest rates for a longer period.

Crude oil prices moved higher as geopolitical tensions reduced expectations of any immediate improvement in U.S.-Iran relations. Brent crude advanced 1.13 per cent to USD 97.08 per barrel, while West Texas Intermediate (WTI) crude gained 1.24 per cent to USD 94.92 per barrel. Rising oil prices are closely watched by Indian investors due to their potential impact on inflation and corporate profitability.

Gold prices eased after stronger U.S. economic data reduced expectations of near-term monetary easing. Spot gold declined 0.4 per cent to USD 4,469.13 per ounce, while silver fell 0.9 per cent to USD 74.44 per ounce.

The U.S. dollar traded within a narrow range, with the Dollar Index edging up 0.046 per cent to 99.216. Meanwhile, the Japanese yen remained under pressure, hovering close to the 160-per-dollar level.

Derivatives positioning suggests a largely range-bound market for the near term. The Put-Call Ratio (PCR) stands at 1.06. On the put side, the highest open interest addition was seen at the 23,300 strike, making it a crucial support zone. On the call side, significant open interest concentration remains at the 24,000 strike, indicating a strong resistance level for Nifty 50.

Immediate resistance for Nifty 50 is placed at 23,641, coinciding with the 8-day exponential moving average (EMA). The next hurdle is near 23,689, which aligns with the 50-day moving average (DMA). A sustained move above these levels could push the index towards 23,769, near the 20-day moving average. On the downside, 23,380 remains the first important support, followed by 23,229. The market is expected to remain range-bound unless it breaks above 23,689 or falls below 23,380.

Several stocks are expected to remain in focus due to corporate developments. Infosys expanded its partnership with DNB Bank ASA to strengthen financial-crime management operations. Vedanta clarified that Enforcement Directorate officials visited certain offices of Vedanta and Hindustan Zinc, adding that it is fully cooperating with the ongoing proceedings. InterGlobe Aviation announced the discontinuation of Manchester flights from August 31 and plans to return one Boeing 787-9 Dreamliner amid operational and cost-related challenges.

Canara Bank approved fundraising of up to Rs 8,500 crore through bond issuances during FY27. Power Finance Corporation said the Registrar of Companies struck off subsidiary PFC Projects, while three wholly owned subsidiaries were dissolved as part of a restructuring exercise. NHPC said the Government exercised the oversubscription option in the ongoing offer-for-sale, increasing the total offer size to 6 per cent stake or 60.3 crore shares.

Mankind Pharma acquired the remaining 10 per cent stake in Upakarma, making it a wholly owned subsidiary. Concord Biotech received U.S. FDA approval for its Mycophenolate Mofetil abbreviated new drug application (ANDA), targeting a market opportunity of around USD 30 million. John Cockerill India secured an order worth approximately Rs 1,300 crore from JSW Vijayanagar Metallics for annealing and coating lines. Delhivery approved the incorporation of a new subsidiary, Delhivery Fintech Distribution.

Amber Enterprises India and Kaynes Technologies remain under the futures and options (F&O) ban list for June 3.

Foreign Institutional Investors (FIIs) remained net sellers on June 2, offloading equities worth Rs 8,362.92 crore. Domestic Institutional Investors (DIIs) provided support by purchasing shares worth Rs 9,589.32 crore.

Indian equities snapped a four-session losing streak on Tuesday, supported by gains in information technology stocks and value buying across select sectors. The Sensex rose 382.50 points, or 0.52 per cent, to close at 74,649.84, while Nifty 50 gained 100.95 points, or 0.43 per cent, to settle at 23,483.55.

U.S. markets finished modestly higher despite lingering geopolitical concerns. The Dow Jones Industrial Average climbed 228.91 points, or 0.45 per cent, to 51,307.79. The S&P 500 added 0.13 per cent to close at 7,609.90, while the Nasdaq Composite edged up 0.03 per cent to 27,093.90.

Among major technology stocks, Nvidia fell 0.69 per cent, AMD gained 2.24 per cent, Apple rose 2.90 per cent, Tesla advanced 1.89 per cent, while Microsoft, Amazon and Alphabet ended lower. Marvell Technology surged 32.52 per cent, emerging as one of the session's top performers.

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