Premarket Report 2-June-2025

Good morning! Here’s a pre-market report for the Indian stock market for Monday, June 2, 2025, taking into account the cues from Friday’s closing and global market sentiment.

I. Key Takeaways from Friday (May 30, 2025):

• Broad-based Selling: Both the Nifty 50 and Sensex ended in the red, indicating a cautious sentiment and profit booking across major sectors.
  • Nifty 50: Closed lower by 81.45 points (-0.33%) at 24,750.70.
  • Sensex: Slipped 182.02 points (-0.22%) to close at 81,451.01.
• Sectoral Performance:
  • Underperformers: IT, auto, pharma, metals, and FMCG sectors saw weakness. IT majors like HCL Technologies, Tech Mahindra, Infosys, and TCS were among the top drags.
  • Outperformers: PSU banks rallied, with the Nifty Bank index closing higher by 0.37% at 55,749.70, led by strong buying in names like Canara Bank, Punjab National Bank, and Bank of Baroda. Financial services overall had a mixed trend.
• Market Breadth: Negative, with more declining shares than advancing ones.
• Key News:
  • India’s Q4 FY25 GDP: Growth came in at a strong 7.4%, marking a four-quarter high. Full-year FY25 GDP growth was estimated at 6.5%. This data was released after market hours on Friday, so its full impact will be seen on Monday.
  • SEBI F&O Rule Changes: SEBI announced significant changes, including raising index options position limits to ₹10,000 crore from ₹1,500 crore and removing intraday limits. These changes aim to improve market stability and risk management.
  • Gold Loan Stocks Rally: Muthoot Finance and Manappuram Finance surged on reports of the Finance Ministry suggesting easier gold loan regulations for small borrowers.
  • US Tariffs: A US federal appeals court reinstated steep tariffs on imports, which had influenced investor sentiment on Friday, leading to some selling in metal stocks.

II. Global Cues for Monday (June 2, 2025):

• Gift Nifty (SGX Nifty): As of Saturday morning, Gift Nifty was trading lower by around 0.41%, hinting at a potentially subdued or negative start for Indian equities.
• U.S. Futures: U.S. futures (Dow, Nasdaq, S&P 500) were showing slight pressure on Friday, suggesting a lack of strong positive cues from Wall Street. However, US markets will be closed on Monday for Memorial Day, so there won’t be fresh cues from their overnight trading.
• European Markets: European indices (DAX, FTSE 100) closed with modest gains on Friday, which could offer some balancing sentiment.
• Asian Markets: Asia broadly saw mixed trends on Friday, with some major indices ending in the red, aligning with the cautious global mood.

III. Pre-Market Outlook for Monday, June 2, 2025:

Given the cues, the Indian stock market is likely to open on a flat to slightly negative note on Monday.

• Cautionary Sentiment: The broad-based selling seen on Friday, coupled with muted global cues and a slight negative indication from Gift Nifty, suggests caution will prevail.
• GDP Impact: While the strong Q4 FY25 GDP growth is a positive fundamental factor, its full impact on market sentiment might be somewhat offset by global uncertainties and previous profit booking. Investors will be watching for how this positive domestic data translates into actual market action.
• F&O Changes: The new SEBI F&O rules might lead to some adjustments in trading strategies, but their immediate impact on the opening would likely be minimal compared to broader market sentiment.
• Sectoral Focus:
  • PSU Banks: Could continue to see interest following their strong performance and positive Q4 results.
  • IT & Metals: Might remain under pressure due to global concerns (e.g., US tariffs affecting metals, overall global tech sentiment for IT).
  • Gold Loan Companies: Could see continued positive momentum after the news regarding easier loan norms.

IV. Key Levels to Watch:

• Nifty 50:
  • Support: 24,584 and 24,488. A break below these levels could indicate further downside.
  • Resistance: 24,892 and 24,988. Crossing these could signal a positive momentum.
• Bank Nifty:
  • Support: 55,417 and 55,208.
  • Resistance: 56,094 and 56,303.

V. Important Factors to Monitor During the Day:

Rupee Movement: The strength or weakness of the Indian Rupee against the US Dollar.

Foreign Institutional Investor (FII) and Domestic Institutional Investor (DII) Flows: Their activity will be crucial in determining market direction.

Global News: Any fresh developments in global trade, inflation, or geopolitical tensions could impact sentiment.

Crude Oil Prices: Fluctuations in oil prices can impact inflation and corporate earnings.