Several factors have influenced the Indian stock market recently, setting the stage for the week ahead. Here are ten key developments that have shaped market sentiment over the weekend:
Gift Nifty Signals: GIFT Nifty was trading around the 25,167 level, a discount of nearly 38 points from the Nifty futures' previous close, indicating a weak start for the Indian benchmark index. Earlier, at the end of June, Gift Nifty was trading around 25,770, a premium of nearly 20 points from the Nifty futures’ previous close, suggesting a mildly positive opening for Indian stock market indices.
Global Market Cues: Asian markets displayed a mixed performance. Investors are analyzing trade negotiations and key economic data from the region.
Wall Street Performance: The U.S. stock market ended higher on Friday, with the S\&P 500 and Nasdaq recording their all-time closing highs. However, earlier in the week, US stock markets closed in the red due to disappointing corporate earnings and anticipation surrounding the Federal Reserve's policy decision.
US-China Trade: There were no significant breakthroughs in US-China trade talks held in Stockholm. However, the US and China have agreed to extend trade negotiations.
US Economic Data: Investors are closely watching the Fed's future guidance amid economic concerns. Key US economic data, including inflation, consumer spending, and consumer sentiment, will be closely monitored.
Tariff Threats: US President Donald Trump previously hinted at the possibility of imposing tariffs as high as 25% on Indian exports, adding uncertainty to the India-US trade relationship.
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.
Crude Oil Prices: Oil prices surged after warnings of additional penalties on Russia, adding volatility to the energy markets.
Indian Market Performance: The Indian stock market closed higher on Friday, extending gains for the fourth consecutive session, with the Nifty 50 closing above 25,600. 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.
FII and DII Activity: FIIs (Foreign Institutional Investors) and DIIs (Domestic Institutional Investors) were net buyers, while the Indian rupee recovered, contributing to the positive market sentiment.
Additional factors to watch include developments in the Israel-Iran situation, the flow of foreign funds, and upcoming IPOs and listings. Investors will also be closely watching for any potential rate cuts from the U.S. Federal Reserve.
