Indian Stock Market Today: Key Overnight Developments Boost Sensex and Nifty

Global market cues, Gift Nifty trends, and gold prices indicate a positive opening for Indian indices amid optimism over RBI MPC and global trends.

February 5, 2025: The Indian stock market is set for a strong opening today, buoyed by overnight developments in global markets and positive domestic cues. Benchmark indices Sensex and Nifty are expected to open higher on Wednesday following the global rally. Asian markets posted gains, while Wall Street ended in the green amid optimism over US-China trade relations.

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On Tuesday, Indian equity markets recorded substantial gains, with the Sensex surging 1,397.07 points (1.81%) to close at 78,583.81 and the Nifty 50 rising 378.20 points (1.62%) to settle at 23,739.25. Banking, financial, and real estate stocks led the rally ahead of the RBI Monetary Policy Committee meeting, scheduled for February 5-7.

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Key Developments to Watch:

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1. Gift Nifty Signals Positive Start

Gift Nifty traded around the 23,845 mark, reflecting a 60-point premium over the previous Nifty futures close. This indicates a positive opening for Indian indices.

2. Global Markets Rally

• Asian Markets: Japan’s Nikkei 225 gained 0.71%, and South Korea’s Kospi surged 0.93%. Hong Kong’s Hang Seng index futures also pointed to a robust opening.
• US Markets: The Dow Jones added 134.13 points (0.30%) to close at 44,556.04, while the Nasdaq surged 1.35% to 19,654.02. Optimism over US-China trade boosted investor sentiment.

3. Alphabet’s Q4 Results

Alphabet’s Q4 results missed revenue estimates, causing a 7% dip in its share price in extended trading. Total revenue rose 12% to $96.47 billion, slightly below analysts’ expectations. Meanwhile, the Google Cloud business posted a 30% YoY growth.

4. US Job Market Trends

December’s job openings fell sharply to 7.6 million, reflecting cooling labor demand. This comes alongside a drop in US factory orders, which fell 0.9% in December, continuing the contraction trend from November.

5. Japan’s Service PMI

Japan’s service activity expanded for the third consecutive month in January, with the PMI rising to 53.0, marking its highest level since September 2024.

6. Gold Prices at Record High

Gold prices surged to an all-time high on safe-haven demand amid US-China tariff tensions. Spot gold rose 0.2% to $2,847.33 per ounce, briefly touching $2,848.94, while US gold futures steadied at $2,876.10.

Expert Insights:

Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, commented on the upbeat sentiment, citing strong BFSI demand and expectations of interest rate reductions. “We expect a gradual upmove in domestic equities, supported by global markets, Q3 earnings, and RBI’s MPC meeting.”

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Indian stock market, Sensex today, Nifty trends, global market updates, Gift Nifty, gold prices, Alphabet Q4 results, RBI MPC, Asian markets, US-China trade