The Indian stock market is poised for a positive opening as global cues and domestic macro triggers align to shape Monday’s trading action.
May 26, 2025: The Indian stock market is expected to open higher on Monday, buoyed by positive global cues and a series of key domestic developments. Here’s a round-up of 10 critical factors that shaped market sentiment over the weekend:
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1. Gift Nifty Signals Positive Start
Gift Nifty traded around the 24,920 level, about 40 points above the Nifty futures’ previous close, indicating a positive bias for Indian indices.
2. Asian Markets Open Higher
Asian markets opened in the green. Japan’s Nikkei 225 rose 0.49%, South Korea’s Kospi climbed 0.55%, and Hong Kong’s Hang Seng futures pointed to a mixed start.
3. Wall Street Wraps With Weekly Loss
US markets ended lower on Friday despite Trump’s tariff delay. The Dow Jones fell 0.61%, the S&P 500 lost 0.67%, and the Nasdaq declined 1%. Apple shares hit a two-week low, down 3%, while Amazon, Meta, and Nvidia also retreated.
4. Trump Delays EU Tariffs
US President Donald Trump agreed to postpone 50% tariffs on EU imports until July 9, citing ongoing trade talks.
5. India Surpasses Japan in Global Economy Rankings
India has overtaken Japan to become the world’s fourth-largest economy, with a $4 trillion GDP, as announced by NITI Aayog CEO BVR Subrahmanyam.
6. RBI Dividend Boosts Fiscal Position
The Reserve Bank of India’s central board has approved a record ₹2.69 lakh crore dividend payout to the government for FY25, a 27% increase from the previous year’s ₹2.1 trillion payout.
7. Forex Reserves Dip
India’s forex reserves fell by $4.888 billion to $685.729 billion as of May 16, still covering 10-12 months of projected imports.
8. Crude Oil Prices Edge Up
Crude oil prices gained after Trump’s tariff delay. Brent crude rose 0.51% to $65.11 a barrel, while US WTI crude added 0.49% to $61.83.
9. Gold Prices Retreat
Spot gold prices fell 0.5% to $3,339.13 an ounce after touching a two-week high, while US gold futures slipped 0.8% to $3,337.40.
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10. Key Domestic Triggers Ahead
This week will see Q4 earnings reports, May F&O expiry, and India’s GDP data, alongside global cues like US fiscal signals and the Russia-Ukraine conflict.
On Friday, Indian markets closed strong. The Sensex surged 769 points to 81,721, while the Nifty 50 climbed 243 points to 24,853. Market expert Prashanth Tapse of Mehta Equities highlighted that short-covering and improved risk appetite supported gains, even as concerns over US debt and interest rates kept volatility high.
Outlook
As domestic and global factors converge, Monday’s trading session will reflect how Indian markets weigh opportunities and risks in this dynamic environment.
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Indian stock market, Nifty 50, Sensex, Gift Nifty, Asian markets, US tariffs, RBI dividend, India forex reserves, Indian economy, global stock markets, oil prices, gold prices, India GDP growth