Indian stock market: 8 key things that changed for market over weekend - Gift Nifty, Nikkei rally to India-US trade deal

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Monday, following strong cues from global markets.

Asian markets traded higher, with the Japanese stocks hitting record high, while the US stock futures also inched higher.

This week, investors will focus on key stock market triggers, including the India-US trade deal, inflation data, Q3 results, flow of foreign funds, global geopolitical developments, and other key domestic and global macroeconomic data releases.

On Friday, the Indian stock market ended higher amid buying in select heavyweights, after the announcement of the Reserve Bank of India (RBI) policy.

The Sensex gained 266.47 points, or 0.32%, to close at 83,580.40, while the Nifty 50 settled 50.90 points, or 0.20%, higher at 25,693.70.

“Markets may remain range-bound in the near term, with stock specific action on the back of earnings outcomes and lingering global uncertainties. Attention will shift to upcoming US economic data and commentary from Federal Reserve officials for further cues on the global macro environment and interest-rate trajectory,” 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 higher, with the Japanese stocks leading gains in the region after Japanese Prime Minister Sanae Takaichi won a landmark election victory. Japan’s Nikkei 225 jumped 5.6% to cross 57,000 for the first time, while the Topix advanced over 3%, hitting a record high. South Korea’s Kospi surged 4.15%, while the Kosdaq rallied 2.97%. Hong Kong’s Hang Seng Index futures indicated a higher opening.

Gift Nifty Today

Gift Nifty was trading around 25,947 level, a premium of nearly 212 points from the Nifty futures’ previous close, indicating a gap-up start for the Indian stock market indices.

Wall Street

US stock market ended higher on Friday, with the Dow Jones Industrial Average surging above the historic 50,000 mark.

The Dow Jones rallied 2.47% to 50,115.67, its highest close ever, while the S&P 500 gained 1.97% to end at 6,932.30. The Nasdaq closed 2.18% higher at 23,031.21. For the week, the Dow jumped 2.5%, the S&P 500 eased 0.1% and the Nasdaq declined 1.9%.

Nvidia stock price surged 7.8%, Advanced Micro Devices shares jumped 8.3% and Broadcom share price rallied 7.1%. Apple stock price rose 0.80%, Microsoft shares climbed 1.90%, while Amazon shares dropped 5.55%. CrowdStrike and Palantir shares rose more than 4% each.

India - US Trade Deal

India and the United States announced an interim trade framework ahead of their Bilateral Trade Agreement (BTA), with commitment from both sides to broaden trade and reduce the US reciprocal tariffs to 18%.

Japan Election Results

Japanese Prime Minister Sanae Takaichi’s coalition swept to a historic election win on Sunday, handing her a mandate to follow through on a pledge to cut taxes and reflate the economy through spending, Reuters reported. The conservative Takaichi, Japan’s first female leader, delivered 316 seats of the 465 in parliament’s lower house for her Liberal Democratic Party, its best ever result.

Japanese Bond Yields

Japanese stocks jumped to record highs while bonds fell and the yen declined after Prime Minister Sanae Takaichi scored a landslide win in Sunday’s snap election. Benchmark 10-year Japanese government bond futures declined 0.37 yen to 131.22 yen. The 30-year JGB yield climbed as much as 6.5 basis points to 3.615%.

Gold Prices

Gold and silver prices extended gains as the dollar weakened. Spot gold price rose 1.4% to $5,029.09 per ounce after a near 4% climb on Friday. US gold futures for April delivery gained 1.4% to $5,051.0 per ounce. Spot silver price rose 2.5% after a 10% gain in the previous session.

Crude Oil Prices

Crude oil prices declined as tensions in the Middle East eased. Brent crude oil price fell 0.72% to $67.56 a barrel, after losing almost 4% last week, while the US West Texas Intermediate (WTI) crude futures declined 0.71% to $63.09.

(With inputs from Reuters)