Gift Nifty signals positive start as investors track Fed decision, US-India trade talks, and Middle East tensions
May 6, 2025 | The Indian stock market is poised for a mildly positive start on Tuesday, May 6, with the Gift Nifty trading around 24,583, indicating a premium of nearly 30 points over the Nifty futures’ previous close. This optimism follows an upbeat Monday session where the Sensex closed at 80,796.84 (+294.85 points) and Nifty 50 at 24,461.15 (+114.45 points).
Also Read: Sensex Rises 295 Points, Nifty Tops 24,450 As Crude Slumps and FIIs Return
However, investors remain cautious amid mixed global cues, geopolitical tensions, and anticipation ahead of the US Federal Reserve’s monetary policy meeting this week.
🔟 Key Market Triggers to Watch Today:
1️⃣ Asian Markets Flat Amid Holiday Closures
Also Read: Rupee Hits Multi-Month High vs US Dollar Amid Crude Price Crash, FPI Inflows
Most Asian stock markets were closed due to public holidays, with Japan and South Korea shut. Hong Kong’s Hang Seng indicated a slightly higher open.
2️⃣ Gift Nifty Indicates Positive Opening
Trading around 24,583, Gift Nifty suggests a marginally positive bias for Indian markets.
3️⃣ Wall Street Retreats
US indices closed lower as the S&P 500 snapped its 20-year record winning streak:
- Dow Jones: -0.24%
- S&P 500: -0.64%
- Nasdaq: -0.74%
Netflix, Amazon, and Apple saw notable drops, while Berkshire Hathaway shares slumped over 5% after Warren Buffett announced plans to step down.
4️⃣ US Services Sector Shows Strength
The ISM services PMI rose to 51.6 in April from 50.8 in March, indicating modest expansion in the US services sector.
5️⃣ US-India Trade Talks Progress
India has reportedly offered zero tariffs on select US goods—steel, auto parts, pharmaceuticals—under reciprocal quotas, boosting hopes of a trade breakthrough.
6️⃣ Israel-Yemen Tensions Escalate
Israel bombed Yemen’s Hodeidah Port in retaliation for a Houthi missile strike near Tel Aviv. Geopolitical instability may influence crude prices and investor sentiment.
7️⃣ Trump Tariff Concerns
The Trump administration is considering tariffs on foreign films and continues to explore new protectionist measures, rattling market nerves.
8️⃣ Gold Prices Edge Up
Gold hit a one-week high:
- Spot Gold: $3,330.16/oz
- US Gold Futures: +0.5% to $3,338.30/oz
9️⃣ Crude Oil Prices Rebound Slightly
After touching four-year lows, oil prices saw a mild recovery:
- Brent: $60.83 (+1%)
- WTI: $57.69 (+0.98%)
🔟 Dollar Weakens Against Majors
The US Dollar Index softened amid trade policy uncertainty:
- Yen: 143.88
- Euro: $1.1316
- GBP: $1.3295
- Taiwan Dollar: 28.815
- Yuan: 7.2014
🏷️ Tags:
Indian stock market, Sensex today, Nifty 50 outlook, Gift Nifty, Federal Reserve policy, US-India trade, Israel Yemen news, gold prices, oil market, Wall Street