The Indian market is likely to open on a guarded note on Tuesday, after an explosive upsurge in the last session when the benchmark indices recorded their largest single-day gains in four years. A quick summary of 8 major overnight developments investors need to see:
1. Gift Nifty Suggests Soft Start
Gift Nifty was at 24,915, close to 128 points down from Nifty futures' last close, indicating a negative domestic opening in the face of worldwide optimism.
2. Historic Rally on Monday
The market experienced a dramatic surge on Monday:
- Sensex increased by 2,975 points (3.74%) to finish at 82,429.90
- Nifty 50 gained 916.70 points (3.82%) to close at 24,924.70
The rally was caused by softening geopolitical tensions and good global cues.
3. India-Pakistan Ceasefire Eases Nerves
In a major geopolitical development, India and Pakistan DGMOs mutually agreed to abide by a ceasefire, soothing investors. PM Narendra Modi, nonetheless, cautioned that India would hit back on its own terms in case of any future aggressions.
4. US-China Trade Deal Boosts Global Mood
A short-lived tariff truce between China and the US instilled optimism in global markets. This mood has carried over to Asian trading sessions today.
5. Wall Street Roars Back
All three US major indices posted their largest one-day gains since April 9:
- Dow Jones: +2.81% at 42,410.10
- S&P 500: +3.26% at 5,844.19
- Nasdaq: +4.35% at 18,708.34
Technology stocks drove the rally:
- Amazon: +8.07%
- Apple: +6.3%
- Nvidia: +5.44%
- Tesla: +6.75%
6. Asian Markets Open Higher
Asian indices followed Wall Street's lead:
- Nikkei 225: +2.17%
- Topix: +1.77%
- Kospi: +0.13%
- Kosdaq: +1.01%
- Hang Seng futures indicated a weaker opening, defying the trend.
7. Gold, Dollar & Crude Oil Update
Gold: Remained steady at $3,235.37/oz, with risk-on sentiment curtailing safe-haven demand.
- Dollar Index: Remained close to a 1-month high at 101.67.
- Crude Oil: Came off marginally—Brent at $64.75, WTI at $61.76—after recent rises.
8. Short Covering & Early Monsoon Forecast
Markets were again boosted by:
- Short covering in derivatives
- IMD's advance monsoon forecast, boosting sentiments across rate-sensitive and rural economy-linked segments.
Expert View:
"Positive momentum in Indian markets will continue on the back of relaxing geopolitical tensions, trade agreement progress, and strengthening economic stability indicators,"
— Siddhartha Khemka, Head – Research, Motilal Oswal Wealth Management.
Takeaway for Investors:
In spite of strong world cues, short-term weakness is anticipated on account of profit booking and weak Gift Nifty reading. However, medium-term sentiment is bullish on account of a unique convergence of positive macro, geopolitical, and world triggers.
Disclaimer: This blog is for general information purposes only. Investors should refer to certified financial planners before making any investment choices.
