From Gift Nifty, US-Iran talks to FPI outflows: 10 key things that changed for Indian stock market over weekend

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a muted note on Monday, following mixed cues from global markets, as investors remain cautious due to the uncertainties over the US-Iran peace talks.

Asian markets traded mixed, while the US stock market ended at record closing high last week, with the S&P 500 registering its ninth consecutive weekly gain, its longest winning streak since December 2023.

This week, investors will watch out for key stock market triggers, including the RBI monetary policy, developments in US-Iran peace talks, movement in crude oil prices, shipping activity through the Strait of Hormuz, trends in FII flow, and other key domestic and global macroeconomic data releases.

On Friday, the Indian stock market ended sharply lower after sudden dip in the fag end of the session.

The Sensex crashed 1,092.06 points, or 1.44%, to close at 74,775.74, while the Nifty 50 settled 359.40 points, or 1.50%, lower at 23,547.75.

“Benchmark indices are likely to remain range-bound, although select midcap and smallcap stocks could continue to outperform on the back of healthy earnings momentum and strong domestic liquidity. However, investors are expected to remain cautious as mixed signals from the ongoing US-Iran talks and recurring geopolitical flare-ups continue to keep volatility elevated across global financial markets,” said Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded mixed on Monday amid uncertainty around US-Iran peace deal. Japan’s Nikkei 225 gained 0.78%, while the Topix fell 0.3%. South Korea’s Kospi jumped 2.40%, while the Kosdaq declined 1.58%. Hong Kong’s Hang Seng index futures indicated a lower opening. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.2%.

Gift Nifty Today

Gift Nifty was trading around 23,702 level, a discount of nearly 46 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.

Wall Street

US stock market indices hit record closing highs on Friday and posted weekly and monthly gains, led by a rally in tech shares.

The Dow Jones Industrial Average gained 363.37 points, or 0.72%, to 51,032.34, while the S&P 500 rose 16.44 points, or 0.22%, to 7,580.07. The Nasdaq Composite closed 55.15 points, or 0.21%, higher 26,972.62.

For the week, the S&P 500 gained 1.43%, the Nasdaq rallied 2.39%, and the Dow advanced 0.9%. For the month, the S&P 500 jumped 5.15%, the Nasdaq surged 8.36%, and the Dow climbed 2.78%.

Nvidia stock price fell 1.45%, Microsoft shares rallied 5.45%, Dell shares jumped 32.8%, Apple stock price eased 0.14%, Amazon shares declined 1.23%, and Alphabet share price dropped 2.5%. Peers Hewlett Packard Enterprise shares spiked 12.6%, Super Micro Computer share price rallied 11.6% and Tesla stock price fell 1.43%.

US-Iran War

The US and Ira traded messages over the weekend seeking changes to a draft agreement that would extend a ceasefire and open the Strait of Hormuz, but it was unclear if the sides were making much progress, Bloomberg reported. Meanwhile, Israel expanded its ground assault in Lebanon in the battle with the Iranian-backed Hezbollah militant group.

Japan PMI

Japan’s manufacturing sector expanded in May at a slightly slower pace. The final S&P Global Japan Manufacturing Purchasing Managers’ Index (PMI) stood at 54.5 in May, down from April’s more than four-year high of 55.1 and matched the flash reading.

India-US Trade Talks

India and US are all set to begin trade talks in Delhi from June 1 to June 4, as both countries look to finalise the interim trade agreement and take forward negotiations. Last week, US Ambassador to India Sergio Gor said that the bilateral negotiations had reached their final stretch.

FPI Outflows

Foreign Portfolio Investors (FPI) net sold Indian stocks worth ₹32,963 crore in the month of May, NSDL data showed. The total FPI outflows in the five months of 2026 reached ₹2,24,932 crore.

Crude Oil Prices

Crude oil prices rallied after Israel ordered troops to move further into Lebanon in the battle with the Iranian-backed Hezbollah militant group, Reuters reported. US crude futures rose 2.71% to $89.73 a barrel, while Brent futures gained 2.37% to $93.28 a barrel.

Dollar

The US dollar held steady as markets awaited the results of US-Iran peace talks. The dollar index of the greenback against a basket of currencies including the yen and the euro, was flat at 99.00, after last week’s drop of 0.4%. The euro fell 0.08% to $1.165, while Sterling slipped 0.07% to $1.3449. The yen weakened 0.08% to 159.41 per dollar.

Gold Rate Today

Gold prices traded flat, having found little support as a safe haven or as a hedge against inflation. Spot gold price was little changed at $4,535 an ounce.

(With inputs from Agencies)