Indian stock market: 7 key things that changed for market overnight - Gift Nifty, Moody's US downgrade to gold prices

Indian stock market: The benchmark domestic equity indices, Sensex and Nifty 50, are likely to start Monday's trading session in green on positive cues from Asian markets.

Asian stocks climbed for the first time in four sessions, following gains in the U.S. that pushed the S&P 500 index close to entering a bull market.

Traders will monitor some key stock market triggers including Q4 results, developments in global trade agreements and any updates on India-Pakistan tensions.

On Monday, Indian indices — the Sensex and Nifty 50 — closed lower on Monday, May 19, amid negative global signals. The Sensex dropped 271 points (0.33%) to finish at 82,059.42, while the Nifty 50 slipped 75 points (0.30%) to end at 24,944.45.

"Domestic benchmark indices ended lower on Monday, weighed down by weak global cues, heightened volatility, and a sharp sell-off in IT stocks. Negative sentiment was further exacerbated by Moody’s downgrade of the US sovereign credit rating, which triggered risk-off sentiment across equity markets. The Nifty 50 opened on a muted note and attempted an upward move; however, selling pressure emerged at resistance levels near the 25,050 mark, leading to profit booking," said Bajaj Broking Research.

Here are key global market cues for Sensex today:

Asian Markets

Asian stocks climbed for the first time in four sessions, taking cues from gains on Wall Street that pushed the S&P 500 close to entering a bull market.

A regional index rose by 0.4%, supported by advances in markets across Australia, Japan, and South Korea, following the S&P 500’s sixth consecutive day of gains.

Meanwhile, U.S. Treasury yields remained stable in early Asian trading after experiencing volatility on Monday due to the U.S. credit rating downgrade.

GIFT Nifty Today

Gift Nifty was trading around 25,076 level, gaining nearly 85 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.

US Markets

U.S. stock futures showed minimal movement. Futures for the S&P 500 edged up by less than 0.1%, while Nasdaq 100 futures slipped 0.1%. Dow Jones Industrial Average futures rose by 54 points, or 0.14%.

The Nasdaq Composite closed slightly higher, gaining 0.02% to reach 19,215.46. The Dow Jones Industrial Average climbed 137.33 points, or 0.32%, ending at 42,792.07. The 30-stock index was boosted by a strong rebound in UnitedHealth, which surged 8% following a period of significant selling pressure.

Moody’s US’ Credit Rating Downgrade

Moody's downgraded the United States' top-tier sovereign credit rating by one level, pointing to worries over the country's escalating $36 trillion debt. The agency reduced the U.S. government's long-held rating from “Aaa” to “Aa1” and changed its outlook from “negative” to “stable.”

US Dollar

Concerns over trade issues, rising fiscal deficits, and diminishing confidence in the long-term strength of the U.S. economy have put pressure on American assets, with the U.S. dollar notably affected. Investors are increasingly viewing the currency as less attractive, as its value declines from previously high levels.

The U.S. dollar index has dropped by as much as 10.6% from its peak in January — marking one of the steepest three-month declines. According to CFTC data, speculators are now holding net short positions against the dollar totaling $17.32 billion, approaching the most negative sentiment toward the currency since July 2023.

Gold Prices

Gold prices slipped slightly as the initial safe-haven demand triggered by Moody’s downgrade of the US credit rating diminished, shifting focus back to the easing trade tensions between the world’s two biggest economies.

After gaining 0.8% on Monday, bullion was trading near $3,220 per ounce. Financial markets adopted a generally risk-on sentiment, with Asian stocks expected to follow Wall Street’s upward trend—a development that typically weighs on gold, which tends to gain when economic outlooks are bleak.

Crude Oil prices

Oil prices remained mostly steady following a two-day rise, as traders assessed indications that US President Donald Trump is stepping back from his attempts to resolve the conflict between Ukraine and Russia.

(With inputs from agencies)

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