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Indian stock market: 8 key things that changed for market over weekend - Gift Nifty, US-China trade talks to gold prices
Indian stock market: The domestic equity market benchmark indices, Sensex and Nifty 50, are expected to open higher on Monday, following upbeat global market cues.
Asian markets gained, while the US stock market ended higher last week, with the S&P 500 hitting its highest in over three months and closing above 6,000 for the first time since February 21. The Dow index also rose to a three-month high.
This week, investors will monitor key stock market triggers, including domestic retail inflation, global tariff announcements, flow of foreign capital, macroeconomic data, and other global market cues.
On Friday, the Indian stock market ended with strong gains after the Reserve Bank of India (RBI) cut repo rate by 50 basis points (bps) to 5.50% and also reduced the Cash Reserve Bank (CRR) by 100 bps to 3%.
The Sensex rallied 746.95 points, or 0.92%, to close at 82,188.99, while the Nifty 50 settled 252.15 points, or 1.02%, at 25,003.05.
'Going forward, the impact of the rate cut is expected to continue influencing market sentiment. Rate-sensitive packs, along with select themes like railways, are likely to stay in focus, while other sectors may contribute on a rotational basis. We continue to recommend a 'buy on dips' strategy with an emphasis on selective stock picking,' said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian markets traded higher on Monday ahead of key US-China trade talks in London today. Japan's Nikkei 225 rallied 0.95%, while the Topix index gained 0.72%. South Korea's Kospi index jumped 1.73% while the Kosdaq rose 0.66%. Hong Kong's Hang Seng index futures pointed at a marginally higher opening.
Gift Nifty was trading around 25,167 level, a premium of nearly 70 points from the Nifty futures' previous close, indicating a positive start for the Indian stock market indices.
US stock market ended higher on Friday after a better-than-expected jobs report calmed worries about the economy.
The Dow Jones Industrial Average surged 442.88 points, or 1.05%, to 42,762.62, while the S&P 500 rallied 61.02 points, or 1.03%, to 6,000.32. The Nasdaq Composite closed 231.50 points, or 1.20%, higher at 19,529.95. For the week, the S&P gained 1.5%, the Dow 1.17% and Nasdaq 2.18%.
Tesla share price rose 3.8%, Nvidia stock price gained 1.24%, Amazon shares added 2.7%, Alphabet stock price rallied 3.25%, and Apple share price advanced 1.64%. Wells Fargo stock price rose 1.9%, Broadcom shares fell 5%, while Lululemon share price slumped 19.8%.
Top US and Chinese officials will sit down in London on Monday for talks aimed at defusing the high-stakes trade dispute between the two superpowers. Gathering there will be a US delegation led by Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer, and a Chinese contingent helmed by Vice Premier He Lifeng.
US nonfarm payrolls increased by 139,000 jobs last month after a downwardly revised rise of 147,000 in April. Economists polled by Reuters had expected the survey of establishments to show 130,000 jobs added after a previously reported gain of 177,000 in April. The unemployment rate stood at 4.2%, in line with expectations.
Gold prices fell after a stronger-than-expected US jobs report and optimism over easing trade tensions between US-China. Spot gold prices fell 0.2% to $3,303.19 an ounce, while US gold futures declined 0.7% to $3,323.40.
Japan's economy contracted in the January-March quarter at a slower pace than initially estimated. Gross domestic product (GDP) shrank an annualised 0.2% in the three months to March, slower than the 0.7% contraction in the initial estimate and economists' median forecast. The revised quarter-on-quarter number translates as flat in price-adjusted terms, compared with a 0.2% shrinkage issued on May 16.
Crude oil prices traded flat as investors waited for US-China trade talks to be held in London later in the day. Brent crude futures eased 0.09% to $66.41 a barrel, while US West Texas Intermediate crude prices fell 0.09% to $64.52.
(With inputs from Reuters)
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
