The Indian stock market is expected to start Monday on a strong note, with benchmark indices Sensex and Nifty 50 likely to open higher. This comes after positive signals from global markets.
Asian stock markets gained ground on Monday, ahead of key US-China trade talks in London. Japan’s Nikkei 225 rose 0.95%, South Korea’s Kospi jumped 1.73%, and Hong Kong’s Hang Seng futures indicated a slightly higher opening. Last week, the US market closed on a high note, with the S&P 500 reaching its highest level in over three months, surpassing 6,000 points for the first time since late February. The Dow Jones also hit a three-month peak.
Investors will be watching several important triggers this week, including India’s retail inflation data, global tariff developments, foreign capital flows, macroeconomic indicators, and ongoing global market trends.
On Friday, the Indian market ended strongly after the Reserve Bank of India (RBI) lowered the repo rate by 50 basis points to 5.50% and cut the Cash Reserve Ratio (CRR) by 100 basis points to 3%. The Sensex gained 746.95 points, or 0.92%, closing at 82,188.99, while the Nifty 50 rose 252.15 points, or 1.02%, to end at 25,003.05.
Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, said the rate cut is expected to continue shaping market sentiment. “Rate-sensitive sectors and select themes such as railways will remain in focus, with other sectors contributing on a rotational basis. We recommend a ‘buy on dips’ strategy with careful stock selection,” he added.
On the Wall Street front, the US stock market climbed after a stronger-than-expected jobs report eased economic concerns. The Dow Jones rose 442.88 points (1.05%) to 42,762.62, the S&P 500 increased 61.02 points (1.03%) to 6,000.32, and the Nasdaq Composite advanced 231.50 points (1.20%) to 19,529.95. For the week, these indices gained between 1.17% and 2.18%. Major stocks like Tesla, Amazon, Alphabet, and Apple saw notable gains.
Looking ahead, US and Chinese officials will meet in London to discuss ways to ease their ongoing trade tensions. The US delegation is led by Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, while China’s team is headed by Vice Premier He Lifeng.
In economic updates, US nonfarm payrolls increased by 139,000 jobs in May, slightly above expectations, and the unemployment rate held steady at 4.2%. Japan’s economy contracted less than initially estimated in the first quarter, with GDP shrinking 0.2% annualized, a slower pace than first reported.
Commodity prices saw mixed movements. Gold prices dropped slightly after the US jobs report and optimism over US-China trade talks. Crude oil prices remained steady as investors awaited the trade discussions.
Overall, the global market momentum and domestic policy moves suggest a positive start for Indian markets this week.
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