Indian stock market: 10 things that changed for market overnight - Gift Nifty, US-India trade talks to Israel-Yemen war

Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to open on a cautious note Tuesday amid mixed global market cues.

Asian markets traded flat, while the US stock market ended lower overnight, with the S&P 500 snapping its longest winning streak in 20 years.

Investors will closely eye the US Federal Reserve’s monetary policy announcement on Wednesday, in which the central bank is largely expected to keep interest rates unchanged. Markets are pricing in about 75 basis points of rate cuts by the Fed for 2025, with the first easing of at least 25 basis points likely at the central bank’s July meeting, according to LSEG data.

On Monday, the Indian stock market ended higher, with the benchmark Nifty 50 index closing above 24,400 level.

The Sensex gained 294.85 points, or 0.37%, to close at 80,796.84, while the Nifty 50 settled 114.45 points, or 0.47%, higher at 24,461.15.

“We are witnessing rotational buying across sectors, which is helping the index maintain its positive tone despite the consolidation. However, participation from the banking sector is crucial, as it could provide the necessary momentum to drive the Nifty 50 toward the 24,800 mark. Participants are advised to maintain a ‘buy on dips’ approach, focusing on stocks demonstrating relative strength,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded flat, with most stock markets in the region closed for holidays. Hong Kong’s Hang Seng index futures indicated a slightly higher open. Japanese and South Korean markets are closed for public holidays.

Gift Nifty Today

Gift Nifty was trading around 24,583 level, a premium of nearly 30 points from the Nifty futures’ previous close, indicating a mildly positive start for the Indian stock market indices.

Wall Street

US stock market ended lower on Monday as investors assessed President Donald Trump’s latest tariff announcement ahead of the Federal Reserve’s monetary policy decision later this week.

The Dow Jones Industrial Average declined 98.60 points, or 0.24%, to 41,218.83, while the S&P 500 dropped 36.29 points, or 0.64%, to 5,650.38. The Nasdaq Composite closed 133.49 points, or 0.74%, lower at 17,844.24.

Netflix stock price fell 1.9%, Amazon.com shares declined 1.9% and Paramount Global share price lost 1.6%. Class B shares of Berkshire Hathaway stumbled 5.1% after Warren Buffett said he will step down as CEO of the conglomerate. Skechers share price surged 24.3%.

Apple stock price dropped 3.15%, while Tesla share price fell 2.42% and Ford shares eased 1.07%.

US Services PMI

The US services sector’s growth picked up in April. The Institute for Supply Management (ISM) said its nonmanufacturing purchasing managers index (PMI) increased to 51.6 last month from 50.8 in March. Economists polled by Reuters had forecast the services PMI dipping to 50.2.

US-India Trade Talks

India has reportedly proposed to charge zero tariffs on steel, auto components and pharmaceuticals from the US on a reciprocal basis. According to a report by Bloomberg quoting people familiar with the development, the reciprocal tariffs have been offered up to a certain quantity of imports from the US. Beyond the set limit, imported industrial goods would attract the regular level of duties, the report said.

Israel-Yemen War

The Israeli military said it carried out airstrikes against Yemen’s Hodeidah Port, a day after the Iran-aligned Houthis fired a missile that struck near Israel’s main airport. The military said in a statement that it attacked what it called Houthi “terrorist” targets in Hodeidah and its vicinity.

Trump Tariffs

The Trump administration has not yet finalised any decision on foreign film tariffs but is “exploring all options” to fulfill President Trump’s directive to protect the domestic movie industry, White House spokesman Kush Desai said.

Gold Prices

Gold prices rose to a one-week high as rising concerns over Trump’s tariff plans boosted safe-haven demand. Spot gold price was trading flat at $3,330.16, while US gold futures rose 0.5% to $3,338.30.

Crude Oil Prices

Crude oil prices steadied after hitting four-year lows in the previous session. Brent crude futures rose 1% to $60.83 a barrel, while US West Texas Intermediate crude added 0.98% to $57.69 a barrel. Both benchmarks had settled at their lowest since February 2021 on Monday.

Dollar

The US dollar weakened against major currencies amid continued uncertainty from Trump’s tariff policies. The greenback slid to a three-year low against the Taiwan dollar to 28.8150, and was down 0.73% against the Japanese yen at 143.885, Reuters reported. The euro was up 0.15% at $1.131600 and the pound was up 0.21% at $1.32950. The Chinese yuan was last up 0.12% to 7.2014 per dollar.

(With inputs from Reuters)

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