Sensex and Nifty 50 may open in the red as Gift Nifty signals a weak start, despite global cues turning positive after the US Fed maintained rates; geopolitical tension and tech shocks weigh on sentiment.
Mumbai, May 8, 2025:
The Indian stock market is set for a cautious start on Thursday, weighed down by escalating tensions with Pakistan and mixed global cues. Gift Nifty was trading around 24,420, about 41 points below Nifty futures’ previous close, suggesting a negative opening for both Sensex and Nifty 50.
On Wednesday, domestic equities bucked the geopolitical gloom and ended modestly higher. The Sensex rose 105.71 points to 80,746.78, while the Nifty 50 gained 34.80 points, closing at 24,414.40.
Ajit Mishra of Religare Broking noted that volatility from geopolitical risks remains high, but sustained foreign institutional investor (FII) buying and positive global trends continue to provide a cushion to Indian markets.
Also Read: Pakistan Stock Market Crashes 5% After Operation Sindoor Strikes
8 Key Market Triggers for May 8:
1. Gift Nifty Signals Weak Start
Gift Nifty indicates a marginally lower open as it trades at a discount of nearly 41 points.
2. Asian Markets Mixed
Japan’s Nikkei 225 rose 0.28%, while Kospi gained 0.36%. Hong Kong’s Hang Seng futures indicated a stronger open, but Topix remained flat.
3. Wall Street Ends Higher Post-Fed
The Dow Jones rallied 284.97 points, S&P 500 rose 0.43%, and Nasdaq closed 0.27% higher after the US Fed kept interest rates steady between 4.25%–4.50%. Fed Chair Jerome Powell reaffirmed the wait-and-watch stance, citing inflation and trade war uncertainties.
4. Alphabet Slumps, Apple Sparks AI Disruption
Alphabet shares plunged 7.51%, wiping off $150 billion in market value after Apple reportedly explored AI search tools for Safari. Apple fell 1.1%. In contrast, Nvidia and AMD rose over 3% and 1.7% respectively, while Disney jumped 10.8%.
5. India-Pakistan Conflict Escalates
Tensions have risen after India’s Operation Sindoor, with Pakistan threatening retaliation. The conflict’s impact on investor confidence could grow if escalations continue.
6. Gold Prices Edge Up
Spot gold gained 0.6% to $3,384.99/oz, while US gold futures held at $3,392.00, amid safe-haven demand following Fed’s cautious tone and geopolitical worries.
7. Crude Oil Prices Steady
Brent crude held at $61.12/barrel, while WTI crude ticked up 0.1% to $58.12, after falling over $1 in the previous session.
8. US-China Trade Outlook Uncertain
President Donald Trump signaled no immediate tariff relief for China, keeping trade tensions alive and global markets on edge.
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