Indian Stock Market Anticipates Bullish Opening on Monday
The Indian stock market benchmark indices, Sensex and Nifty 50, are poised to open higher on Monday, buoyed by robust signals from global markets. Asian markets have been trading positively, with Japanese stocks achieving record highs, while US stock futures have also shown upward momentum. This optimistic sentiment sets the stage for a potentially strong trading session in India.
Key Market Triggers and Investor Focus This Week
This week, investors will closely monitor several critical stock market triggers that could influence market direction. The primary factors include:
- The India-US trade deal, which has announced an interim framework ahead of a Bilateral Trade Agreement, with commitments to expand trade and reduce US reciprocal tariffs to 18%.
- Upcoming inflation data releases, both domestic and global, which will provide insights into economic health.
- Q3 results from companies, driving stock-specific actions based on earnings outcomes.
- The flow of foreign funds, a crucial element for market liquidity and sentiment.
- Global geopolitical developments and other macroeconomic data that could impact market stability.
On Friday, the Indian stock market closed higher, with the Sensex gaining 266.47 points (0.32%) to settle at 83,580.40, and the Nifty 50 rising 50.90 points (0.20%) to close at 25,693.70. This uptick followed the announcement of the Reserve Bank of India (RBI) policy, which spurred buying in select heavyweight stocks.
Expert Insights on Market Outlook
Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services Ltd, commented, "Markets may remain range-bound in the near term, with stock-specific action driven by earnings outcomes and lingering global uncertainties. Attention will shift to upcoming US economic data and commentary from Federal Reserve officials for further cues on the global macro environment and interest-rate trajectory."
Global Market Cues Influencing Sensex Today
Asian Markets: Asian markets traded higher, led by Japanese stocks after Prime Minister Sanae Takaichi's coalition secured a historic election victory. Japan's Nikkei 225 surged 5.6% to cross 57,000 for the first time, while the Topix advanced over 3%, hitting a record high. South Korea's Kospi jumped 4.15%, and the Kosdaq rallied 2.97%. Hong Kong's Hang Seng Index futures indicated a higher opening.
Gift Nifty Today: Gift Nifty was trading around the 25,947 level, representing a premium of nearly 212 points from the Nifty futures' previous close. This suggests a gap-up start for the Indian stock market indices, signaling strong investor confidence.
Wall Street Performance: US stock markets ended higher on Friday, with the Dow Jones Industrial Average surpassing the historic 50,000 mark. The Dow Jones rallied 2.47% to 50,115.67, its highest close ever, while the S&P 500 gained 1.97% to end at 6,932.30. The Nasdaq closed 2.18% higher at 23,031.21. For the week, the Dow jumped 2.5%, though the S&P 500 eased 0.1% and the Nasdaq declined 1.9%.
Notable stock movements included Nvidia surging 7.8%, Advanced Micro Devices jumping 8.3%, and Broadcom rallying 7.1%. Apple rose 0.80%, Microsoft climbed 1.90%, while Amazon dropped 5.55%. CrowdStrike and Palantir shares increased more than 4% each.
Japan Election Impact on Markets
Japanese Prime Minister Sanae Takaichi's coalition achieved a sweeping victory in Sunday's snap election, securing 316 seats out of 465 in parliament's lower house for her Liberal Democratic Party. This historic win, Japan's best-ever result, has fueled market optimism, with stocks jumping to record highs. Concurrently, bonds fell and the yen declined, reflecting investor shifts towards riskier assets.
Benchmark 10-year Japanese government bond futures declined 0.37 yen to 131.22 yen, and the 30-year JGB yield climbed as much as 6.5 basis points to 3.615%.
Commodities Market Updates
Gold Prices: Gold and silver prices extended gains as the dollar weakened. Spot gold price rose 1.4% to $5,029.09 per ounce after a near 4% climb on Friday. US gold futures for April delivery gained 1.4% to $5,051.0 per ounce. Spot silver price increased 2.5% following a 10% gain in the previous session.
Crude Oil Prices: Crude oil prices declined as tensions in the Middle East eased. Brent crude oil price fell 0.72% to $67.56 a barrel, after losing almost 4% last week, while US West Texas Intermediate (WTI) crude futures declined 0.71% to $63.09.
Overall, the Indian stock market is set for a positive opening, driven by a confluence of favorable global cues and key domestic triggers. Investors should stay vigilant on upcoming economic data and geopolitical developments that could shape market trends in the coming days.
