Markets are in a buoyant mood this morning. The release of the framework for the India–US trade agreement has improved global risk appetite and is expected to support Indian equities. A historic election victory for Prime Minister Sanae Takaichi’s party in Japan lifted Japanese stocks sharply, while other Asian markets also moved higher. US markets ended on Friday with a strong rally, pushing the Dow Jones index above the 50,000 mark for the first time, setting the stage for a positive opening in India today.
Goldman Sachs has cautioned investors that the sharp swings seen in US markets last week could persist in the coming sessions. According to the bank, algorithm-driven trading is playing a key role in amplifying market volatility.
In GIFT City derivatives trade, GIFT Nifty closed overnight at 25,837.50.
It rose to around 25,975 in early morning trade before easing slightly.
This indicates a strong positive opening for Indian equities today.
In the US ADR market, Infosys ended marginally higher, while Wipro fell 1.57 percent. However, Wipro recovered in post-market trade.
The framework for the India–US trade agreement has now been unveiled. An interim deal is expected to be finalised by March, after which the exact impact on Indian companies will become clearer.
Talks between the US and Iran, held recently in Oman, are expected to continue later this week.
US markets staged a sharp rebound on Friday, brushing aside concerns around the technology sector.
The Dow Jones Industrial Average surged more than 1,200 points to close above 50,000 for the first time.
The S&P 500 moved back into positive territory for 2026.
Nvidia rose 8 percent, Broadcom gained 7 percent, while Oracle and Palantir climbed around 4 percent each.
Software stocks, however, remained under pressure.
US futures were also pointing higher this morning.
European markets closed with solid gains on Friday, though shares of Stellantis plunged 24 percent after the company announced a $26 billion restructuring plan.
Asian markets are trading sharply higher today.
Japan’s Nikkei index jumped 5.6 percent, crossing the 57,000 mark, after Prime Minister Sanae Takaichi’s LDP secured a landslide victory with a two-thirds majority in Sunday’s parliamentary election.
US President Donald Trump had publicly backed Takaichi.
Australia’s market rose about 2 percent, while South Korea gained nearly 4 percent.
Hong Kong opened around 1.5 percent higher, and Chinese indices were up about 1 percent.
Indian benchmark indices ended Friday with modest gains after a volatile session, while the broader market remained weak.
Advance–decline ratios favoured declines on both the BSE and NSE.
Mid cap and small cap indices underperformed the benchmarks.
Foreign institutional investors were net buyers, while domestic institutions remained net sellers.
Foreign investors invested ₹8,129 crore in Indian equities last week, following large withdrawals earlier this year. Market participants believe improving sentiment around the India–US trade deal could lead to stronger foreign inflows in the coming weeks, potentially pushing markets to higher levels.
From a technical perspective, Nifty is attempting to move into the 26,000–26,300 zone. Failure to hold above 25,450 could drag the index closer to 25,000. Key support levels today are seen around 25,550 and 25,500, while resistance is expected near 25,755 and 25,820.
India’s weight in the MSCI Emerging Markets Index has slipped to fourth place at 13.34 percent, behind China, Taiwan and South Korea, largely due to foreign outflows and weakness in IT stocks. Analysts believe this could reverse if foreign investors return in a meaningful way.
Brokerages believe the India–US trade agreement could benefit several Indian companies:
Samvardhana Motherson, which derives around 20 percent of its revenue from the US.
Sona BLW and Bharat Forge, both of which earn nearly 40 percent of revenue from the US.
Tata Motors’ Jaguar Land Rover business, which accounts for 86 percent of the company’s revenue and could benefit from easing US trade restrictions.
Balkrishna Industries, where US sales accounted for 17 percent of revenue last year.
Kalyan Jewellers reported a 42 percent rise in third-quarter revenue, with gross profit up 74.3 percent and net profit jumping 90 percent.
Sun TV’s revenue rose 4 percent, but net profit fell 10.7 percent as margins narrowed.
Power Finance Corporation acquired a 52.63 percent stake in REC, making it a subsidiary, following the Union Budget announcement.
Bosch reported a 9.4 percent rise in revenue and a 16.1 percent increase in net profit.
Whirlpool India’s revenue rose 4 percent, but net profit declined sharply.
Tata Steel’s net profit surged to ₹2,730 crore, aided by one-off gains from a subsidiary transaction.
SBI posted strong growth in net interest income, operating profit and net profit, with asset quality improving further.
Gold prices remain extremely volatile.
After briefly crossing $5,000 an ounce on Thursday, prices fell sharply before rebounding nearly 4 percent on Friday.
Prices again crossed $5,000 in early trade today before slipping back.
Silver followed a similar pattern.
In Kerala, 22-carat gold fell sharply on Friday before rebounding strongly on Saturday.
Bullion market participants remain divided on the outlook. While some see room for a sharp correction, major global banks such as JP Morgan and Bank of America continue to project significantly higher prices later this year, driven by investor demand and central bank buying.
Industrial metals ended mostly higher on Friday, led by aluminium and copper.
Rubber, cocoa, coffee and tea prices declined.
The dollar index weakened further, while the euro and pound strengthened.
The yen weakened amid expectations that the new Japanese government prefers a softer currency.
US 10-year bond yields edged higher.
The rupee weakened after the RBI’s policy decision, though it recovered slightly in offshore trade this morning.
Crude oil prices remain under pressure, while natural gas prices declined further.
Cryptocurrencies continue to see sharp swings, with Bitcoin slipping below $70,500 this morning after a volatile week.
(As on February 6, Friday)
Sensex 83,580.40 +0.32%
Nifty 50 25,693.70 +0.20%
Bank Nifty 60,120.55 +0.09%
Mid cap 100 59,502.70 -0.02%
Small cap 100 16,938.65 -0.27%
Dow Jones 50,115.67 +2.47%
S&P 500 6,932.30 +1.97%
Nasdaq 23,031.21 +2.18%
Dollar ₹90.65 +0.33
Gold (ounce) $4,968.00 +$189.50
Gold (sovereign) ₹1,12,720 -₹520
Saturday price ₹1,14,840 +₹2,120
Brent crude $68.05 -$0.70