Gift Nifty hints at a 485-point premium; optimism returns with India-Pakistan ceasefire, US-China trade deal, and easing geopolitical tensions.
Mumbai | May 12, 2025:
The Indian stock market is poised for a strong rebound on Monday, driven by easing geopolitical tensions and encouraging global economic cues. Gift Nifty traded around 24,550, indicating a gap-up opening for benchmark indices Sensex and Nifty 50, following last week’s correction amid India-Pakistan conflict.
Here are 10 key developments impacting markets today:
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1. Gift Nifty Signals Strong Start
Gift Nifty is trading nearly 485 points above its previous close, reflecting investor confidence after the weekend’s ceasefire announcement and trade deal resolution.
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2. India-Pakistan Ceasefire
Both nations agreed to halt military operations after “Operation Sindoor.” The move brought immediate relief to market sentiment, which was battered by last week’s cross-border tensions.
3. US-China Trade Breakthrough
US and China reached a tentative deal to reduce the trade deficit. A joint statement is expected today, further boosting global equity sentiment.
4. Wall Street Mixed But Resilient
- Dow: -119 pts | Nasdaq: Flat | S&P 500: -4 pts
- Positive earnings from Tesla (+4.72%), Intel, and AMD partially offset investor caution.
5. Asian Markets in Green
- Nikkei +0.36%, Kospi +0.67%, Topix +0.19%
- Hang Seng futures slightly weak, though sentiment overall remains optimistic.
6. Dollar Mixed; Yen Falls
- Dollar Index: 100.60 (+0.2%)
- USD/JPY: 145.90
- Offshore Yuan firmed slightly despite minor dollar gains.
7. Crude Oil Edges Up
- Brent: $64.02/barrel
- WTI: $61.19/barrel
Trade optimism helped lift crude slightly, although prices remain range-bound.
8. Gold Declines
- Spot Gold: $3,286.86/oz (-1.1%)
- US Gold Futures: $3,291.60/oz (-1.6%)
Safe haven demand dipped after positive trade and ceasefire news.
9. Key Domestic Triggers Ahead
- Retail inflation data, Q4 earnings, and foreign capital flows will guide this week’s trend.
- Market experts advise a hedged and stock-specific strategy amid residual volatility.
10. Global Political Watchlist
- Russia-Ukraine: Zelenskyy calls for ceasefire talks
- US-Iran: Nuclear dialogue resumes in Oman
- Continued geopolitical engagement signals a calmer investment climate
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Indian stock market, Sensex, Nifty 50, Gift Nifty, India-Pakistan ceasefire, US-China trade deal, global market cues, crude oil, gold price, stock market outlook, Asian markets