Indian stock market: 8 things that changed for market overnight- Gift Nifty, Wall Street rally, India-Pakistan ceasefire

Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open on a tepid note on Tuesday after a sharp rally in the previous session. Upbeat global market cues amid US-China trade deal and optimism over India-Pakistan ceasefire may continue to support positive sentiment in the market.

Asian markets traded higher, while the US stock market jumped overnight, with the S&P 500, the Nasdaq and the Dow Jones all boasting their biggest single-day percentage gains since April 9.

On Monday, the Indian stock market witnessed a stellar rally, with the benchmark indices posting the best single-day rally in four years, as a host of positive news, from India-Pakistan ceasefire to US-China trade deal, lifted investor sentiment.

The Sensex jumped 2,975.43 points, or 3.74%, to close at 82,429.90, while the Nifty 50 settled 916.70 points, or 3.82%, higher at 24,924.70.

“The de-escalation in India-Pakistan tensions over the weekend has significantly helped calm investor’s nerves and improve sentiments. IMD’s forecast of an early monsoon and short covering in derivatives segment, further propelled the market upwards. Positive momentum in Indian markets is likely to continue, driven by easing geopolitical tensions, progress on trade deals, and improving signs of economic stability,” Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded higher on Tuesday, following a sharp overnight rally on Wall Street after the US-China trade deal.

Japan’s Nikkei 225 gained 2.17%, while the Topix index rose 1.77%. South Korea’s Kospi index added 0.13% and the Kosdaq rallied 1.01%. Hong Kong’s Hang Seng index futures indicated a weaker open.

Gift Nifty Today

Gift Nifty was trading around 24,915 level, a discount of nearly 128 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.

Wall Street

US stock market ended sharply higher on Monday, with the S&P 500 marking its highest level since early March, after the US-China agreement to temporarily slash tariffs.

The Dow Jones Industrial Average jumped 1,160.72 points, or 2.81%, to 42,410.10, while the S&P 500 surged 184.28 points, or 3.26%, to finish at 5,844.19. The Nasdaq Composite closed 779.43 points, or 4.35%, higher at 18,708.34.

Apple share price rallied 6.3%, Amazon shares spiked 8.07%, Nvidia stock price soared 5.44%, while Microsoft stock added 2.4% and Advanced Micro Devices shares jumped 5.13%. Tesla share price gained 6.75% and NRG Energy shares skyrocketed 26.2%.

PM Narendra Modi on Operation Sindoor

Prime Minister Narendra Modi said India has only “paused its military action” and will “retaliate on its own terms” if there is any future terror attack on the country. “We will be monitoring every step of Pakistan," Modi said in an address to the nation. Modi also said India won’t “tolerate nuclear blackmailing” by Pakistan and would take stern action for any future terror attack.

India-Pakistan Ceasefire

The Director Generals of Military Operations (DGMOs) of India and Pakistan held high-level talks and the two countries reportedly decided to adhere to a mutual commitment to not fire a single shot or initiate any aggressive and inimical action against each other.

Gold Prices

Gold prices were steady as the US-China trade deal lifted risk appetite, diminishing bullion’s safe-haven appeal. Spot gold prices held its ground at $3,235.37.86 an ounce, while US gold futures rose 0.5% to $3,243.50.

US Dollar

The dollar held strong gains after the US-China trade deal. Against a basket of currencies, the dollar hovered near a one-month high and was last at 101.67. The dollar was last down 0.1% at 148.29 yen, after having jumped 2.1% in the previous session, Reuters reported. The euro was up 0.1% at $1.1095, having tumbled 1.4%, while sterling was little changed at $1.3178, having fallen 1% on Monday.

US Treasury yields rose, with the two-year yield steadying near a one-month high at 3.9977%, while the benchmark 10-year yield was last at 4.4551%.

Crude Oil Prices

Crude oil prices eased from a two-week high. Brent crude futures dropped 0.32% to $64.75 per barrel, while US West Texas Intermediate (WTI) crude fell 0.31% to $61.76. Both benchmarks closed about 1.5% higher on Monday.

(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.