Pre-Market Update: Sensex, Nifty 50 Set to Open Lower as Global Markets Slide; NASDAQ Fell Over 2% on Thursday

Pre-Market Update at 7:53 AM: Indian benchmark indices Sensex and Nifty 50 are likely to open lower on Friday, March 27, 2026, tracking sharp losses in global markets amid rising tensions in the U.S.–Iran conflict and uncertainty over a potential peace agreement.

As of 7:26 am, GIFT Nifty was trading near the 23,125 level, down by nearly 48 points from the previous close of Nifty futures, indicating a negative start for domestic equities.

Global sentiment remained weak, with Asian markets declining significantly and Wall Street ending sharply lower in the previous session. The Nasdaq fell more than 2 per cent, confirming a correction phase in U.S. equities.

Asian markets traded under pressure on Friday. Japan’s Nikkei 225 declined 1.27 per cent, while the Topix slipped 0.28 per cent. South Korea’s Kospi plunged 2.96 per cent and the Kosdaq dropped 1.33 per cent. Hong Kong’s Hang Seng index futures also संकेत a weak opening.

A key trigger for markets remains the ongoing U.S.–Iran tensions. U.S. President Donald Trump stated that attacks on Iran’s energy infrastructure would be paused for 10 days following a request from Tehran, adding that negotiations are progressing “very well.” However, an Iranian official rejected the proposal, calling it one-sided and unfair, keeping geopolitical uncertainty elevated.

Crude oil prices declined after the extension of the negotiation deadline. Brent crude fell 0.76 per cent to USD 107.19 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped 0.43 per cent to USD 94.07.

In Japan, government bond yields surged, with the 5-year yield hitting a record high of 1.77 per cent. The 10-year yield rose to 2.30 per cent and the 2-year yield climbed to 1.35 per cent, nearing a three-decade high, indicating tightening financial conditions.

Goldman Sachs has downgraded Indian equities to ‘marketweight’ from ‘overweight,’ citing weaker macroeconomic conditions and slowing earnings growth. It also reduced the Nifty 50’s 12-month target to 25,900 from 29,300, implying a potential upside of around 13 per cent based on moderate earnings growth and a target PE multiple of 19.5x.

China’s industrial profits rose sharply by 15.2 per cent year-on-year in the first two months, compared to 0.6 per cent growth last year, reflecting improved industrial activity. Meanwhile, the U.S. dollar remained firm near multi-month highs, trading at 99.93 against a basket of currencies and on track for a 2.3 per cent monthly gain.

From a derivatives perspective, the Put-Call Ratio (PCR) stands at 1.25. On the Put side, the 23,000 strike has significant open interest, making it a crucial support level. The 23,300 level also shows notable support. On the Call side, heavy open interest at 23,500 suggests strong resistance, indicating limited upside unless this level is breached.

Technically, Wednesday’s high of 23,465 is expected to act as immediate resistance for Nifty 50. A break below 23,000 could lead to further downside towards 22,800 and 22,650. On the upside, 23,465 remains a key hurdle.

In the F&O segment, SAIL remains under the ban list for March 27.

Institutional flows continue to show divergence. On March 25, Foreign Institutional Investors (FIIs) were net sellers worth Rs 1,805.37 crore, marking their 19th consecutive session of selling. Domestic Institutional Investors (DIIs) bought equities worth Rs 5,429.78 crore, providing some support to the market.

The Indian stock market was closed on Thursday due to Ram Navami. On Wednesday, the indices ended with strong gains, with the Sensex rising 1,205 points or 1.63 per cent to 75,273.45, and the Nifty 50 gaining 394.05 points or 1.72 per cent to close at 23,306.45.

On Wall Street, markets closed sharply lower. The Dow Jones fell 469.38 points or 1.01 per cent to 45,960.11. The S&P 500 dropped 1.74 per cent to 6,477.16, and the Nasdaq declined 2.38 per cent to 21,408.08. Technology stocks led the decline, with Nvidia down 4.16 per cent, AMD falling 7.49 per cent, Meta dropping 7.92 per cent, Alphabet down 3.06 per cent, Microsoft easing 1.37 per cent, and Tesla declining 3.59 per cent.

In commodities, gold steadied around USD 4,400 per ounce after a sharp fall in the previous session, while silver gained 0.5 per cent to USD 68.33.

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