Pre-market Setup (June 13): GIFT Nifty down 209 pts; markets bracing for gap-down open

Indian markets are expected to witness a gap-down opening on Friday, June 13, as global geopolitical tensions intensify. The GIFT Nifty futures slipped 209 points or 0.8 per cent to trade at 24,750, indicating a weak start for domestic indices. The sharp selloff comes after Israel launched airstrikes on Iran, triggering a broad risk-off sentiment across equity markets worldwide.

Crude oil soars as Middle East conflict deepens

Brent crude futures rallied over 7 per cent to trade above $74 per barrel, while WTI jumped to $73. Analysts warn that any prolonged conflict in the region could push energy prices higher, stoke inflationary pressures, and derail the global recovery. For India, which imports over 80 per cent of its oil needs, this poses a risk to macroeconomic stability.

Wall Street futures plunge; Nasdaq futures fall 1.7%

The Dow Jones Industrial Average futures plunged 558 points or 1.3 per cent in overnight trade. S&P 500 futures fell 1.5 per cent, and Nasdaq 100 futures declined 1.7 per cent. The volatility stems from rising geopolitical uncertainty and a flight to safe-haven assets like the US dollar and gold.

Asian markets under pressure

Major Asia-Pacific indices traded sharply lower in early deals. Japan’s Nikkei 225 dropped 1.28 per cent and South Korea’s Kospi lost 0.83 per cent. The Kosdaq index slid nearly 1.82 per cent. Sentiment remains fragile as markets assess the impact of Middle East tensions and their spillover effects on global trade and inflation.

FII selloff continues but DIIs lend support

According to provisional data from the NSE, FIIs sold shares worth Rs 3,831 crore on Thursday. However, domestic institutional investors (DIIs) stepped in and bought equities worth Rs 9,393 crore, cushioning some of the losses.

Gold nears lifetime high; rupee under pressure

With risk assets under pressure, investors rushed to gold. The 24-carat gold rate surged to Rs 98,540 per 10 grams, just shy of its all-time high. Meanwhile, the rupee weakened slightly to 85.60 per dollar, tracking the broader strength in the US Dollar Index, which rose to 98.09.

Sectoral trends and group movers

On Thursday, defensive pockets like beverages and paints gained modestly. Varun Beverages rose over 1 per cent, while select rubber stocks also saw buying interest. Among business groups, Nagarjuna Group outperformed, with NACL Industries gaining 5 per cent. On the flip side, KK Birla Group stocks were under pressure.

What to watch today

Traders will closely monitor crude oil prices, any further escalation in the Israel-Iran conflict, and cues from European markets. With the India VIX likely to surge, volatility is expected to remain high throughout the session.