7 things that changed for market overnight - Gift Nifty, Nasdaq rally to India-US trade deal hopes
The Indian stock market is poised for a cautious yet optimistic start today as global cues, US market rallies, and potential progress in India-US trade negotiations influence investor sentiment. Here’s a detailed look at the seven key factors shaping the market outlook for Tuesday.
1. Gift Nifty Indicates a Flat-to-Positive Opening
Gift Nifty was trading around 25,709 level, showing a premium of nearly 15 points from the Nifty futures’ previous close. This indicates a flat-to-positive start for the Indian benchmark indices Sensex and Nifty 50 as traders assess global developments and anticipate domestic earnings updates.
2. Sensex and Nifty End Higher on Monday
On Monday, the Indian stock market snapped a three-day losing streak supported by buying in select index heavyweights.
Sensex gained 319.07 points (0.38%) to close at 83,535.35.
Nifty 50 rose 82.05 points (0.32%) to settle at 25,574.35.
According to Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd., “Markets may remain range-bound tracking global cues, but optimism around better-than-expected corporate earnings and any progress in India–US trade talks could provide upside support.”
3. Asian Markets Trade Higher
Asian markets mirrored Wall Street’s positive momentum, showing strong gains across major indices.
Japan’s Nikkei 225 rose 1.06%, while the Topix gained 0.52%.
South Korea’s Kospi rallied 2.72%, and Kosdaq climbed 1.38%.
However, Hong Kong’s Hang Seng Index futures indicated a slightly lower opening.
Overall, the Asian region displayed renewed optimism following the US market surge and easing fears over the government shutdown.
4. Wall Street Rally Lifts Global Sentiment
The US stock market closed sharply higher on Monday, driven by gains in AI and tech-related stocks and positive developments regarding the US government shutdown.
Dow Jones rose 0.81% to 47,368.63.
S&P 500 jumped 1.54% to 6,832.43.
Nasdaq surged 2.27% to 23,527.17, marking its biggest one-day gain since May 27.
AI-focused stocks led the rally:
Nvidia jumped 5.8%, Palantir surged 8.8%, AMD advanced 4.47%, while Amazon and Microsoft rose 1.63% and 1.85%, respectively.
Meanwhile, Tesla gained 3.7%, while airline stocks like United Airlines and American Airlines declined.
5. India–US Trade Deal Hopes
A major highlight for global investors was the potential India-US trade deal.
US President Donald Trump said the two countries were “pretty close” to finalizing a deal, which could lead to a reduction in tariff rates on Indian goods. He added, “We’re getting a fair deal that’s good for everybody.”
This development has boosted market optimism, particularly for export-driven Indian sectors.
6. US Federal Reserve’s Next Move
US Federal Reserve Governor Stephen Miran suggested that weak job data and cooling inflation support the case for another rate cut in December.
He mentioned that a half-point rate cut is still “appropriate,” though at minimum, a quarter-point cut would be necessary.
These remarks fueled investor expectations for continued policy support, driving gains in equity and gold markets.
7. Gold and Crude Oil Market Trends
Gold Prices: Spot gold rose 0.4% to $4,131.83 per ounce, hitting a three-week high, while US gold futures advanced to $4,138.70. The rally reflects growing demand for safe-haven assets amid Fed rate-cut expectations.
Crude Oil Prices: In contrast, oil traded lower. Brent crude fell 0.19% to $63.94 per barrel, while WTI crude slipped 0.23% to $60.01, as investors assessed demand outlook amid global growth concerns.
Market Outlook
With Gift Nifty trading higher, positive global cues, and trade optimism between India and the US, the market may witness a steady start today. However, analysts caution that volatility could persist due to external factors like crude price movement and US economic data.
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