India’s benchmark stock indices, the Sensex and Nifty 50, are likely to open higher on Monday, supported by gains in overnight global markets following fresh developments on US tariffs. The US Supreme Court struck down the sweeping tariff measures, but US President Donald Trump subsequently raised the new global tariff rate to 15%.
Asian markets traded in positive territory, and US equities closed higher last week after the Supreme Court’s ruling on the Trump-era tariffs.
This week, investors will track several key market triggers, including further updates on US tariffs, India’s GDP data, the monthly derivatives expiry, movements in gold and silver prices, foreign fund flows, and other major domestic and global macroeconomic indicators.
Moreover, on Friday, strong buying across most sectors drove the Indian stock market sharply higher, helping the benchmarks close with solid gains.
Domestic Market Recap
On Friday, Indian indices closed in the green:
- Sensex soared by 316.37 points (0.38%) to close at 82,814.71
- Nifty 50 moved up by 116.90 points (0.46%) to settle at 25,571.25
Gift Nifty
Gift Nifty was trading near 25,750, around 167 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.
Overnight Wall Street Performance
The US stock market closed higher on Friday as investors reacted positively to the US Supreme Court’s decision to strike down the tariffs imposed by President Donald Trump.
- The Dow Jones Industrial Average gained by 230.81 points (0.47%) to close at 49,625.97.
- S&P 500 up by 47.62 points (0.69%), ending at 6,909.51.
- The Nasdaq Composite was higher by 203.34 points (0.90%), finishing at 22,886.07.
Crude Oil Prices
- Brent crude tanked by 1.16% to $70.93/barrel
- US West Texas Intermediate (WTI) crude was trading 1.19%higher at $65.68/barrel
Overnight Major Global Events Driving Sentiment
- Trump Tariffs: The US Supreme Court struck down the global tariffs imposed by President Donald Trump, calling them unconstitutional. In response, Trump signed an executive order invoking Section 122 of the Trade Act of 1974 to introduce a temporary 10% global tariff. He later increased this rate to 15%, the maximum permitted under Section 122.
- US–Iran Nuclear Talks: Iranian Foreign Minister Abbas Araghchi told CBS’s Face the Nation that there is a “good chance” of reaching a diplomatic solution based on a win-win framework. He added that a resolution is within reach and confirmed plans to meet US special envoy Steve Witkoff for talks in Geneva.
- US GDP, Inflation Data: The US economy expanded at a slower-than-expected pace in the fourth quarter, with GDP growing at an annualised rate of 1.4%. The economy had grown 4.4% in the third quarter and 2.2% over the full year. Meanwhile, inflation accelerated more than expected in December. The core Personal Consumption Expenditures (PCE) price index, excluding food and energy, rose 0.4%, compared to 0.2% in November. On a year-on-year basis, core PCE inflation climbed to 3.0% in December from 2.8% in November.
- RBI MPC Meeting Minutes: Strong economic growth and subdued inflation prompted the Monetary Policy Committee (MPC) of the Reserve Bank of India to maintain its policy stance in February, according to the meeting minutes. RBI Governor Sanjay Malhotra stated that the current policy rate remains appropriate given the economy’s buoyant growth and benign inflation. He also noted that recent global developments have created room for greater optimism.
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