Indian stock market: 10 key things that changed for market overnight- Gift Nifty, India-Pakistan war to US-UK trade deal

Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to open lower on Friday amid escalating military conflict between India and Pakistan.

Asian markets traded mixed, while the US stock market ended higher overnight after the trade agreement between the United States and United Kingdom.

On Thursday, the Indian stock market ended lower, dragged by fag-end selling, on rising tensions between India and Pakistan after the government announced that Indian armed forces had targeted air defence radars and systems at multiple locations in Pakistan.

The Sensex tanked 411.97 points, or 0.51%, to close at 80,334.81, while the Nifty 50 settled 140.60 points, or 0.58%, lower at 24,273.80.

“Ongoing uncertainty continues to make traders cautious, potentially clouding the prevailing trend amid lingering geopolitical tensions. Until the volatility, as indicated by the elevated India VIX, subsides, we recommend maintaining a hedged strategy to navigate the current environment, with focus on stock selection,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded mixed on Friday as investors awaited China’s April trade data and uncertainty over the US-China trade deal.

Japan’s Nikkei 225 rallied 1.17% and the Topix gained 1.06%. South Korea’s Kospi rose 0.3%, while the Kosdaq fell 0.59%. Hong Kong’s Hang Seng index indicated a slightly lower opening.

Gift Nifty Today

Gift Nifty was trading around 23,976 level, a discount of nearly 295 points from the Nifty futures’ previous close, indicating a gap-down start for the Indian stock market indices.

Wall Street

US stock market ended higher on Thursday after a new trade deal between the United States and Britain.

The Dow Jones Industrial Average gained 254.48 points, or 0.62%, to 41,368.45, while the S&P 500 rose 32.66 points, or 0.58%, to 5,663.94. The Nasdaq Composite closed 189.98 points, or 1.07%, higher at 17,928.14.

Delta Air Lines shares surged 7.2%, while Boeing share price rallied 3.3%. Arm stock price slumped 6.2%, Tapestry shares rose 3.7% and Krispy Kreme stock plummeted 24.7%.

India-Pakistan War

Tensions between India and Pakistan escalated after military stations at Jammu, Pathankot and Udhampur were targeted by Pakistani-origin drones and missiles along the International Border in Jammu and Kashmir (J&K). The Defence Ministry said that the threats were swiftly neutralised using kinetic and non-kinetic capabilities.

Moreover, reports said that Indian Army Air Defence Units shot down two Pakistani drones in Naushera sector of J&K. There has been heavy exchange of artillery fire between the two sides in the sector.

US-UK Trade Deal

US President Donald Trump and British Prime Minister Keir Starmer announced a limited bilateral trade agreement that leaves in place Trump’s 10% tariffs on British exports, modestly expands agricultural access for both countries and lowers prohibitive US duties on British car exports, Reuters reported.

US Jobless Claims

The number of Americans filing new applications for unemployment benefits fell more than expected last week. Initial claims for state unemployment benefits dropped 13,000 to a seasonally adjusted 228,000 for the week ended May 3. Economists polled by Reuters had forecast 230,000 claims for the latest week.

Bank of England Rate Cut

The Bank of England cut interest rates, but a surprise three-way split among policymakers cooled expectations that it might speed up future moves. The BoE’s rate-setters voted 5-4 in favour of cutting borrowing costs by a quarter of a percentage point to 4.25%.

Gold Prices

Gold prices firmed, while markets looked ahead to US-China trade talks due this weekend. Spot gold price rose 0.1% to $3,309.39 an ounce, while US gold futures firmed 0.3% to $3,314.20. Spot gold fell nearly 2% in the previous session, when prices hit a low of $3,288.39.

Crude Oil Prices

Crude oil prices extended gains after a nearly 3% rally in the previous session. Brent crude oil rose 0.17% to $62.95 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 0.17% to $60.01.

US Dollar

The US dollar gained against major currencies after the US-UK trade deal. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.77% to 100.66. The euro was down 0.67% at $1.1223, while the pound was down 0.42% at $1.3239. Against the Japanese yen, the dollar strengthened 1.46% to 145.92.

(With inputs from Reuters)

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