Progress in US-China trade negotiations lifted global markets on Tuesday morning. The positive developments also pushed up crude oil prices while gold saw a dip. The Indian market is buoyed with hopes of continuing its rally.
Monday’s six-hour-long trade talks between the US and China in London ended on an optimistic note. The talks will continue today. The US delegation described the discussions as positive and fruitful, although the Chinese side did not issue any statement.
Reports suggest today’s discussions will focus on rare earth minerals and the transfer of advanced technology. The US delegation includes Treasury Secretary Scott Besant, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, while Chinese Vice Premier He Lifeng is leading the Chinese team.
In New Delhi, India-US trade talks have reportedly entered a decisive phase, although the government has not shared any official update. India is keen to reach a consensus before implementing the alternative tariff on July 9.
Crude oil breached the $67 mark, supported by optimism over the US-China discussions.
In the derivatives market, GIFT Nifty closed at 25,232 on Monday night and rose to 25,250 this morning, suggesting a strong opening for Indian equities.
European markets remained slightly subdued on Monday as investors awaited the outcome of US-Japan trade talks. Meanwhile, American chip giant Qualcomm announced its acquisition of chip designer Alphawave for $2.4 billion, leading Alphawave shares to jump 20%. Spectris, a manufacturer of technical instruments, surged 60% after private equity firm Advent International announced its takeover.
US markets remained largely flat on Monday ahead of the trade talks. The Dow Jones closed marginally lower by 1.11 points at 42,761.76. The S&P 100 index rose 5.52 points (0.09%) to 6005.88, while the Nasdaq Composite gained 61.28 points (0.31%) to end at 19,591.24.
Tesla shares rose 4.55% despite Elon Musk’s continued fallout with President Trump.
US futures also showed gains: the Dow was up 0.04%, the S&P up 0.06%, and Nasdaq futures rose 0.08%.
Asian markets too opened strong. Japan’s Nikkei rose 0.5%, and markets in Hong Kong and China were also in the green.
Following the RBI’s monetary policy boost, Indian equities continued their rally on Monday. Bulls in the market are now aiming for higher levels. Despite warnings that corporate earnings for the April-July quarter might not be very strong, the market seems to be shrugging off these concerns.
The Nifty closed 100.15 points higher (0.40%) at 25,103.20. The Sensex gained 256.22 points (0.31%) to settle at 82,445.21. Bank Nifty rose 261.20 points (0.46%) to end at 56,839.60. The Midcap 100 surged 664.65 points (1.13%) to 59,674.95, and the Smallcap 100 jumped 290.95 points (1.57%) to 18,873.40.
Bank Nifty touched a record high in morning trade.
The broader market saw more advances than declines. On the BSE, 2,750 stocks rose while 1,464 declined. On the NSE, 2,064 stocks gained while 904 fell.
On the NSE, 108 stocks hit 52-week highs while only 20 fell to new lows. As many as 133 stocks hit the upper circuit, while 54 stocks hit the lower circuit.
Foreign institutional investors were net buyers of ₹1,992.87 crore in the cash market on Monday. Domestic mutual funds bought stocks worth ₹3,503.79 crore.
With Nifty breaching the 25,100 mark, resistance is expected in the 25,200–25,300 zone. Support levels are seen at 25,075 and 25,030. Resistance may emerge at 25,140 and 25,200.
Gold-loan companies continued their rally. Muthoot Finance rose nearly 4%, pushing its market capitalisation above ₹1 lakh crore. Manappuram Finance gained 7%, and IIFL jumped 11%.
Federal Bank’s stock rose to ₹213.05. Its 52-week high is ₹217.
Following reports that Rapido is entering the food delivery space, shares of incumbents Zomato and Swiggy fell by around 3%.
MCX jumped 6% after SEBI approved trading in electricity derivatives.
Hindustan Zinc surged 4.73% on Monday, tracking silver prices. The stock is up 29% in a month
Gold prices rose slightly on Monday but are expected to fall today due to optimism surrounding US-China trade talks. In early Asian trade, gold opened lower. From Monday’s closing of $3,326.18 per ounce, it dropped to $3,315.
In Kerala, gold fell by ₹200 per sovereign yesterday to reach ₹71,640.
Silver continues its record-breaking run. Demand from industries like solar is increasing, while supply is constrained. Analysts say the shortage may last until 2030. Silver, which usually tracks gold, has outperformed recently. After touching $36.95 per ounce on Monday, silver opened at $36.70 this morning. The market expects it to move toward $40.
Most industrial metals gained on Monday. Copper rose 0.55% to $9,848.65 per tonne. Aluminium was up 1.16% at $2,479. Lead, nickel, and tin also gained, while zinc declined.
Rubber prices in the international market rose 0.31% to 161.50 cents per kg. Cocoa rose 0.34% to $10,207.82 per tonne. Coffee climbed 1.19%, and tea rose 0.88%.
The US dollar weakened further. The dollar index closed at 98.94 and was trading around 99.00 in the morning.
In the forex market, the euro strengthened to $1.1416, while the pound touched $1.3546. The Japanese yen appreciated to 144.69 per dollar.
US 10-year treasury yields fell, with Monday’s returns dropping to 4.48%.
The Indian rupee remained stable, closing at 85.63 per dollar after initial weakness.
China’s currency strengthened to 7.18 yuan per dollar.
Crude oil prices extended gains. Optimism over the US-China talks supported the rally. Brent crude crossed $67 per barrel. This morning, Brent was at $67.21, WTI at $65.46, and Murban at $67.08 per barrel.