Stock Market Today: Gift Nifty, Asian Markets, US Downgrade

Sensex, Nifty 50 likely to open higher as Gift Nifty climbs 85 pts; traders eye Q4 results, global cues, and India-Pakistan developments.

May 20, 2025: The Indian stock market is expected to open on a positive note Tuesday, bolstered by strong cues from Asian markets and a rise in Gift Nifty. Despite closing in the red on Monday, the Sensex and Nifty 50 may rebound as investor sentiment improves globally.

On Monday, the Sensex fell 271 points to end at 82,059.42, while the Nifty 50 slipped 75 points to close at 24,944.45. The dip was attributed to weak global cues, IT stock selloffs, and the US credit rating downgrade by Moody’s, which triggered risk-off sentiment across equity markets.

Also Read: Gold Prices Rise on Weaker Dollar, Tariff Concerns; MCX Gold Nears This Level

“Profit-booking near the 25,050 resistance mark pulled the Nifty lower after a tentative upward move,” said Bajaj Broking Research.

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7 Key Overnight Developments for the Indian Market:

1. Gift Nifty Jumps:
Gift Nifty was trading around 25,076, up by 85 points, hinting at a positive start for Indian indices.

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

2. Asian Markets Rally:
Asian stocks rose for the first time in four sessions, tracking a strong performance on Wall Street. Gains were seen in Japan, South Korea, and Australia, while regional indices climbed 0.4%.

3. US Market Mixed but Resilient:
The Dow Jones closed up 137 points, the Nasdaq ended marginally higher, and the S&P 500 continued its climb, nearing bull market territory. US stock futures showed minimal overnight movement.

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

4. Moody’s Downgrades US Credit Rating:
Moody’s downgraded the US from Aaa to Aa1, citing concerns over its $36 trillion debt pile. This move sparked short-term volatility and risk aversion in global markets.

5. Weakening US Dollar:
The US dollar index has dropped over 10% from its January peak. With net short positions hitting $17.3 billion, confidence in the dollar has waned amidst fiscal worries and global trade tensions.

6. Gold Prices Ease:
Gold saw a minor retreat after Monday’s 0.8% rise, currently trading near $3,220 per ounce. With easing trade tensions and improved risk appetite, bullion lost some of its safe-haven shine.

7. Crude Oil Prices Hold Steady:
After two days of gains, crude oil prices remained stable. Markets are weighing the implications of US President Donald Trump stepping back from resolving the Russia-Ukraine conflict.

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Market Outlook:

With Q4 earnings, global trade updates, and India-Pakistan geopolitical tensions in focus, volatility may persist. However, Gift Nifty’s rise and global recovery trends offer short-term bullish cues.

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Sensex, Nifty 50, Indian stock market, Gift Nifty, Moody’s US downgrade, gold prices, Asian markets, crude oil, US dollar, market outlook