Indian stock market: 8 things that changed for market overnight - Gift Nifty, US-Europe trade war to gold, silver rates

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open flat on Tuesday, following weak global market cues.

Asian markets traded lower, while the US stock futures declined, as US President Donald Trump’s announcement of tariffs on eight European countries over Greenland dampened investor sentiment.

On Monday, the Indian stock market ended lower as global trade tensions escalated following US President Donald Trump’s announcement of tariffs on eight European countries.

The Sensex declined 324.17 points, or 0.39%, to close at 83,246.18, while the Nifty 50 settled 108.85 points, or 0.42%, lower at 25,585.50.

“Going ahead, markets are expected to trade sideways, tracking global cues and ongoing earnings, while any escalation on the geopolitical front would remain a key overhang,” 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 lower Tuesday as President Donald Trump’s tariff threats over Greenland stoked concerns of revived trade tensions and weighed on investors’ risk appetite. Japan’s Nikkei 225 fell 0.7%, while the Topix declined 0.52%. South Korea’s Kospi dropped 0.41%, and the Kosdaq traded flat. Hong Kong’s Hang Seng index futures indicated a higher opening.

Gift Nifty Today

Gift Nifty was trading around 25,608 level, a premium of nearly 12 points from the Nifty futures’ previous close, indicating a flat start for the Indian stock market indices.

Wall Street

US stock market was closed for a holiday on Monday, January 19, on account of Martin Luther King, Jr. Day. Stock futures pointed to a negative session on Wall Street on Tuesday.

China LPR

China left benchmark lending rates unchanged for an eighth consecutive month in January. The one-year loan prime rate (LPR) was kept at 3.0%, while the five-year LPR was unchanged at 3.5%.

Citi downgrades European equities

Citi downgraded continental Europe to “neutral” for the first time in over a year, saying the latest step-up in transatlantic tensions and tariff uncertainty dented the near-term investment case for European equities.

Japanese Bond Yield

Japan’s 40-year bond yield rose to 4%, the highest since its debut in 2007. The 40—year rate jumped 5.5 basis points, marking the first time Japanese government bond yields have reached the 4% level since the 20-year yield in December 1995, Bloomberg reported.

Gold, Silver Prices

Gold prices traded near all-time peak, while silver prices hit a record high on US-Europe trade tensions. Silver briefly touched a record of $94.7295 an ounce on Tuesday and gold was near $4,670.

Dollar

The US dollar retreated to its lowest level in a week. The dollar index, which measures the greenback’s strength against a basket of six currencies, slid 0.1% to 99.004 - its lowest level since January 14.

Against the yen, the dollar was flat at 158.175 yen. Against the Chinese yuan trading offshore in Hong Kong, the dollar was holding steady at 6.9536 yuan, Reuters reported. The euro was flat at $1.1640, while the British pound was also steady at $1.3427.

(With inputs from Agencies)