Indian stock market: 7 key things that changed for market overnight- Gift Nifty, Russia-Ukraine war to Election Results

Indian stock market: The domestic market benchmark indices are anticipated to have a positive opening on Monday’s trade with GIFT Nifty up more than 433.3 points from Friday’s close on Nifty Futures amid positive global cues.

Asian stocks rose on Monday, joining the upward trend of US equity futures. Meanwhile, the dollar weakened against other currencies as bond yields fell. This shift followed the announcement that fund manager Scott Bessent would be the next US Treasury Secretary, with investors anticipating that he will advocate for market interests in Washington.

The last trading session in the market concluded with decent gains, providing relief after several weeks of decline.

Despite a negative trend for most of the week due to ongoing selling by foreign institutional investors (FIIs), Friday’s sharp recovery, driven by bargain hunting in major index stocks, enabled the indices to close near their highs.

The Nifty 50 and Sensex each gained nearly 2 percent, finishing at 23,907.20 and 79,117.10, respectively.

“The market witnessed a significant broad based rally, from the oversold territory, predominantly led by large-cap stocks, as their valuations appeared appealing with expectations of improvement in corporate earnings in the second half of the fiscal year,” said Vinod Nair, Head of Research, Geojit Financial Services.

Here are key global market cues for Nifty 50 and Sensex today:

Gifty Nifty

The domestic market benchmark indices are expected to open positively during Monday’s trading, with the GIFT Nifty rising over 433.3 points from Friday’s close on Nifty Futures, supported by encouraging global signals.

Asian Markets

Asian stocks experienced a notable rally alongside US equity futures on Monday, marking a positive turn for the markets. The dollar retreated against other currencies as bond yields declined. This shift followed the announcement of Scott Bessent, a respected fund manager, as the next US Treasury Secretary. Investors are optimistic that his appointment will enable a stronger voice for market considerations in Washington, according to a Reuters report.

MSCI’s broadest index of Asia-Pacific shares increased by 1.6%. U.S. S&P 500 futures rose by 0.5%, approaching a record high after a 0.3% gain in the cash index at the end of last week. Japan’s Nikkei index saw an impressive rise of 1.6%, and South Korea’s Kospi climbed by 1.5%. Australia’s share market also performed well, gaining 0.7% and reaching a new record high. This overall positive sentiment in the markets reflects an encouraging outlook for investors.

Wall Street closed higher on Friday, with all three major indexes achieving significant weekly gains. Investors confidently responded to data demonstrating strong economic activity in the world’s largest economy.

In November, a key measure of business activity skyrocketed to a 31-month high, fueled by expectations of lower interest rates and more business-friendly policies from President-elect Donald Trump’s administration in the coming year.

The Dow Jones Industrial Average increased by 426.16 points, or 0.97%, closing at 44,296.51. The S&P 500 rose by 20.63 points, or 0.35%, finishing at 5,969.34, while the Nasdaq Composite climbed by 31.23 points, or 0.16%, ending at 19,003.65.

Crude Oil

Crude oil prices remained close to two-week highs due to rising geopolitical tensions between Western nations and key oil producers, Russia and Iran, which have increased concerns about potential supply disruptions.

Brent crude futures rose by 0.2%, reaching $75.30 per barrel, while US West Texas Intermediate crude futures also increased by 0.2%, settling at $71.38 per barrel. Both benchmarks experienced a rally of approximately 6% last week, as reported by Reuters.

Russia-Ukraine war

Recent media reports highlight a notable development in the conflict, as Ukrainian forces utilised British-made long-range Storm Shadow missiles to strike military targets within Russia. This action has prompted discussions about the UK’s, along with the US’s, role in the conflict and how Moscow perceives these countries in the context of potential consequences.

In response to the missile launches, Vladimir Putin has indicated a shift in strategy, confirming Russia’s first use of an intermediate-range ballistic missile targeting the Ukrainian city of Dnipro. He also expressed that Russia now considers it within its rights to target “military facilities” in nations supplying Kyiv with long-range weapons. This situation underscores the importance of diplomatic engagement and dialogue to de-escalate tensions and find a constructive path forward.

Maharashtra experienced a significant electoral shift on Saturday, as the ruling ‘Mahayuti’ alliance achieved a remarkable victory, securing 230 of the 288 Assembly seats. The BJP reached its highest tally since 1990 with 132 seats, marking a historic moment as it became the first party in the coalition era to be the single-largest party across every region of Maharashtra.

Gold Prices

According to a Reuters report, gold prices took a slight dip on Monday after reaching a three-week peak earlier in the session. This pullback came as investors secured profits and traders adjusted their forecasts for potential Federal Reserve rate cuts, all while eagerly awaiting key data that could shape the interest rate outlook. Spot gold decreased by 0.6% to $2,695.79 per ounce as of 0246 GMT, while US gold futures fell by 0.5% to $2,697.90.

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