Indian stock market: The domestic equity market benchmark indices, Sensex and Nifty 50, are expected to open higher on Monday following positive global market cues, amid optimism over US-China trade deal and easing geopolitical tensions in the Middle East as Israel-Iran ceasefire continues to hold.
Asian markets traded higher, while the US stock market rallied last week, with all three major Wall Street indexes posting weekly gains.
This week, investors will focus on key stock market triggers, including US tariffs and trade deals, developments in the Israel-Iran war, a slew of IPOs and listings, flow of foreign funds, trends in crude oil prices, macroeconomic data, among other global cues.
On Friday, the Indian stock market ended higher, extending gains for the fourth consecutive session, with the benchmark Nifty 50 closing above 25,600 level.
The Sensex rallied 303.03 points, or 0.36%, to close at 84,058.90, while the Nifty 50 settled 88.80 points, or 0.35%, higher at 25,637.80.
“The recent geopolitical stability has improved risk sentiment, as seen in the broad-based market participation. Moreover, positive developments around potential trade agreements could further strengthen the bullish bias. We continue to recommend a ‘buy on dips’ strategy on the index, with an emphasis on selective stock picking for better opportunities,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded higher on Monday as investors analyse details on trade negotiations and key economic data in the region.
Japanese Nikkei 225 rallied 1.68%, while the Topix index gained 0.96%. South Korea’s Kospi index advanced 0.85%, while the Kosdaq was flat. Hong Kong’s Hang Seng index futures indicated a stronger opening.
Gift Nifty Today
Gift Nifty was trading around 25,770 level, a premium of nearly 20 points from the Nifty futures’ previous close, indicating a mildly positive start for the Indian stock market indices.
Wall Street
US stock market ended higher on Friday, with the S&P 500 and Nasdaq recording their all-time closing highs.
The Dow Jones Industrial Average surged 432.43 points, or 1.00%, to 43,819.27, while the S&P 500 gained 32.05 points, or 0.52%, to 6,173.07. The Nasdaq Composite closed 105.55 points, or 0.52%, higher at 20,273.46. All three major Wall Street indexes posted weekly gains.
Nvidia share price rose 1.8%, while Amazon shares rallied 2.85%. Micron Technology shares eased 0.98%, while Tesla stock price dropped 1.43%. Nike shares jumped 15.2%.
US Inflation
The US Personal Consumption Expenditures Price Index gained 0.1% in May, matching the rise in April and in line with the consensus estimate in a Reuters poll of economists. In the 12 months through May, PCE inflation increased 2.3% after climbing 2.2% in April.
US-China Trade Deal
US Treasury Secretary Scott Bessent said that the United States and China have resolved issues surrounding shipments of rare earth minerals and magnets. He added that the Trump administration’s trade deals with 18 of the main US trading partners could be done by the September 1 Labor Day holiday.
US Consumer Spending
US consumer spending unexpectedly fell in May. Consumer spending dropped 0.1% last month after an unrevised 0.2% gain in April. Economists polled by Reuters had forecast consumer spending would edge up 0.1%.
US Consumer Sentiment
US consumer sentiment rose sharply in June to a four-month high. The final June sentiment index increased to 60.7 from 52.2 a month earlier, according to the University of Michigan.
Japan Factory Output
Japanese factory output rose at a slower pace than expected in May. Industrial output rose 0.5% in May from the previous month, less than a median market forecast for a 3.5% rise. Manufacturers expect seasonally adjusted output to rise 0.3% in June and fall 0.7% in July.
Crude Oil Prices
Crude oil prices fell 1% on easing geopolitical risks in the Middle East and expectations of another OPEC output hike in August. Brent crude futures fell 0.97% to $67.11 a barrel. US West Texas Intermediate crude dropped 1.31% to $64.66 a barrel.
Gold Prices
Gold prices fell to their lowest in more than a month as easing US-China trade tensions dampened safe-haven demand. Spot gold price fell 0.3% to $3,264.64 per ounce, after hitting its lowest level since May 29. US gold futures declined 0.4% to $3,275.30.
(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.
