The Indian stock market is expected to open higher today, mirroring positive sentiment from global markets. Several factors have contributed to this outlook, ranging from international trade developments to corporate earnings and movement in commodity prices.
Gift Nifty: The Gift Nifty, an indicator of how the Indian stock market might perform, was trading around 25,297, a premium of approximately 44 points from the previous Nifty futures close. This suggests a positive start for Indian indices. Formerly known as SGX Nifty, it has been rebranded and shifted to the NSE International Exchange in GIFT City, Gujarat. It serves as a tool for tracking and forecasting movements in the Nifty 50.
Global Market Cues: Asian markets displayed an upward trend, buoyed by overnight rallies on Wall Street driven by trade deal optimism. Japan's Nikkei 225 and South Korea's Kospi saw significant gains. In the US, the Dow Jones Industrial Average, S&P 500, and Nasdaq all closed higher. These global cues often impact the Gift Nifty and, consequently, the Indian stock market.
Infosys Q1 Results: Infosys, India's second-largest IT services exporter, announced a 9% year-on-year increase in consolidated net profit, reaching ₹6,921 crore for the first quarter. Revenue from operations also grew by 8% YoY to ₹42,279 crore. The company has revised its revenue growth guidance upward, projecting 1-3% growth in constant currency for FY26. Infosys secured contracts valued at $3.8 billion, with 55% representing new business. These results have led to Infosys' ADR shares jumping over 3% on the NYSE.
Tesla's India Launch: Tesla has officially launched its Model Y in India, with prices starting at ₹61 lakh. While analysts believe the immediate impact on sales and stock may be limited due to high import tariffs, the long-term potential exists within India's expanding EV market. The company has also set up its first showroom in Mumbai and announced the installation of charging stations. Tesla's entry could attract demand from consumers interested in luxury brands.
Gold Prices: Gold prices have climbed to their highest level in over five weeks, supported by a softer US dollar and lower Treasury yields. Spot gold was steady at $3,430.19 per ounce. Fluctuations in gold prices often coincide with shifts in stock market performance, with gold considered a safe-haven asset during economic uncertainty. Some experts suggest that the traditional inverse correlation between gold and equities may not always hold true.
Crude Oil Prices: Crude oil prices have stabilized following the US-Japan trade deal and industry data indicating a decline in US crude inventories. Brent crude futures rose 0.48% to $68.92 a barrel, while US West Texas Intermediate crude futures increased 0.51% to $65.64 per barrel.
US-Japan Trade Deal: The US and Japan have finalized a trade agreement that reduces tariffs on Japanese imports, including automobiles. The new pact lowers US auto tariffs to 15% from the previous 25%. The deal also involves significant Japanese investments in the US.
India-UK Trade Deal: The Union Cabinet has approved a free trade agreement with the United Kingdom, hailed as a "landmark deal".
Overall Market Sentiment: The domestic equity market indices, Sensex and Nifty 50, are expected to open higher following positive cues from global markets. On Wednesday, the Indian stock market ended with strong gains, with the Nifty 50 closing above 25,200. The Sensex surged 539.83 points to close at 82,726.64, and the Nifty 50 settled 159.00 points higher at 25,219.90.
Dollar Movement: The dollar was largely flat against the yen, while the euro and sterling experienced slight declines. The dollar index remained relatively unchanged after a three-day decline.
