Indian stock market: 8 key things that changed for market overnight - Gift Nifty, India-US trade deal to gold prices

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open with strong gains on Tuesday after the US President Donald Trump announced that India and the US have agreed for a trade deal following a conversation with Prime Minister Narendra Modi.

Trump announced the reduction in reciprocal tariffs on Indian goods to 18% from 25% and that India will also reduce its tariffs and non-tariff barriers against the US to zero. The announcement of the India-US trade deal significantly lifted global risk sentiment.

Asian markets rallied, while the US stock market ended higher overnight, led by technology stocks.

On Monday, the Indian stock market ended with strong gains, recouping partial losses from the previous session.

The Sensex jumped 943.52 points, or 1.17%, to close at 81,666.46, while the Nifty 50 settled 262.95 points, or 1.06%, higher at 25,088.40.

“As markets gradually absorb the Budget impact, yesterday’s rebound highlighted selective value buying in infrastructure, defence, and large-cap stocks. Overall, the trade deal offers a strong near-term sentiment boost, particularly for export-oriented and manufacturing sectors, while continued government focus on capex provides a steady underlying support for the broader market,” said Ponmudi R, CEO of Enrich Money.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded higher on Tuesday after the US and India agreed to a trade deal. Japan’s Nikkei 225 rallied 2.44% and the Topix gained 1.94%. South Korea’s Kospi jumped over 5%, triggering a buy sidecar, while the Kosdaq rose 2.32%. Hong Kong Hang Seng index futures indicated a higher opening.

Gift Nifty Today

Gift Nifty was trading around 25,939 level, a premium of nearly 797 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 Monday, led by gains in chipmakers and other companies related to artificial intelligence.

The Dow Jones Industrial Average rallied 1.05% to 49,407.66, while the S&P 500 gained 0.54% to end at 6,976.44. The Nasdaq closed 0.56% higher at 23,592.11.

Apple stock price surged 4.04%, Nvidia stock price declined 2.89%, AMD shares jumped 4.03%, Microsoft share price fell 1.61%, Alphabet stock rose 1.9% to a record high and Amazon shares added 1.5%. SanDisk share price spiked 15.4% and Micron Technology shares added 5.5%.

India-US Trade Deal

US President Donald Trump said that he spoke with Indian Prime Minister Narendra Modi and announced a series of trade agreements that he said would strengthen ties between the United States and India. He said that the US will reduce the reciprocal tariff it charges on imports from India from 25% to 18%.

US PMI

US factory activity grew for the first time in a year in January. The Institute for Supply Management said its manufacturing PMI rebounded to 52.6 last month, the highest reading since August 2022. The PMI was at 47.9 in December, and had been in contraction territory for 10 straight months. Economists polled by Reuters had forecast the PMI rising to 48.5.

Gold Prices

Gold prices rose, recouping some of the previous session’s losses, while silver prices also advanced. Gold price rose 2.5% to $4,778.16 an ounce, while silver prices advanced 4.3% to $82.69.

Dollar

The dollar held gains on positive economic readings. The dollar index, which measures the greenback against a basket of currencies, was little changed at 97.50, after a two-day advance, Reuters reported. The euro was up 0.1% at $1.1804, and the yen tacked on 0.1% to 155.53 per dollar.

Crude Oil Prices

Crude oil prices held steady as market participants weighed the possibility of a de-escalation in US-Iran tensions. Brent crude futures price rose 0.1% to $66.36 per barrel, while US West Texas Intermediate crude was at $62.24 per barrel, up 0.2%.

(With inputs from Reuters)