Indian Stock Market Today: Gift Nifty Dip, US Credit Downgrade, Gold Surge Among Key Cues

Markets may open on a cautious note as global cues remain mixed — from Moody’s downgrade of US sovereign rating to safe-haven gold rally and easing India-Pak tensions

May 19, 2025: The Indian stock market is poised for a cautious start to the week, with Gift Nifty indicating a minor dip and global developments presenting a mixed bag of triggers for investors. Benchmark indices Sensex and Nifty 50 are expected to open lower on Monday, following subdued cues from Asian peers and ongoing concerns about global economic stability.

Also Read: India’s Import Curbs to Cost Bangladesh $770 Million, Hit 42% of Bilateral Trade

Last week, the Indian markets saw mild profit-taking after a sharp rally, with the Sensex falling 200.15 points to close at 82,330.59, while Nifty 50 dipped 42.30 points to 25,019.80.

According to Siddhartha Khemka of Motilal Oswal Financial Services, the market’s overall tone remains positively biased, supported by easing geopolitical tensions, progress on trade negotiations, and signs of macroeconomic recovery.

Also Read: IMF Slaps 11 New Conditions on Pakistan, Flags India Tensions as Economic Risk Post-Operation Sindoor

Key Factors Impacting Markets This Week:

1. Gift Nifty Trends:
Gift Nifty was trading around 25,065 — about 13 points below the Nifty futures close, suggesting a soft start to the trading session.

2. Asian Markets Weaken:
Major Asian indices slipped on Monday ahead of economic data releases. Japan’s Nikkei 225 lost 0.54%, while South Korea’s Kospi and Kosdaq fell 0.47% and 0.77% respectively.

Also Read: Market Cap of 9 Out of Top 10 Indian Firms Soars ₹3.35 Lakh Crore; Reliance Leads the Surge

3. Wall Street Gains on US-China Tariff Truce:
US markets rallied for the fifth consecutive session, driven by the resolution of trade tensions between Washington and Beijing. The Dow gained 0.78%, the S&P 500 rose 0.70%, and the Nasdaq climbed 0.52%. For the week, the S&P jumped 5.3%, while Nasdaq led with a 7.2% surge.

4. Moody’s Downgrades US Credit Rating:
Moody’s downgraded the US from “Aaa” to “Aa1”, citing growing concerns over the $36 trillion national debt. The outlook has been revised to “stable” as uncertainty mounts around long-term fiscal management.

5. Trump Renews Tariff Threats:
US Treasury Secretary Scott Bessent reiterated President Trump’s stance on imposing tariffs on trade partners unwilling to negotiate “in good faith.”

6. Currency Movements:
The US dollar eased against major currencies. It lost 0.3% to the yen and fell against the euro and Swiss franc. The euro climbed to $1.1185 while the pound gained slightly to $1.3299.

7. Gold Prices Climb Sharply:
Gold saw a strong rally with spot prices jumping 1.4% to $3,247.40 an ounce, supported by weakening dollar and renewed demand for safe-haven assets amid tariff threats and credit worries.

8. Crude Oil Steady Ahead of Key Global Events:
Brent crude hovered around $65.43 a barrel, while US crude edged to $62.52 as markets awaited developments on the US-Iran nuclear front and China’s upcoming economic data.

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