Global markets are once again charging ahead under the influence of the bulls. The momentum was triggered by progress in ending the United States government shutdown, which has lifted investor sentiment across continents. After days of caution surrounding artificial intelligence (AI) firms, investors have returned enthusiastically to the sector. AI-related stocks surged across the US, Europe, and Asia, setting the tone for Indian markets that are now gearing up for a strong session.
While equities rallied, gold and silver climbed even faster. Within just 24 hours, gold rose by 3.5%, and silver soared by 5%. Crude oil prices, however, dipped slightly. Despite reports of a terror attack in Delhi, analysts believe it is unlikely to weigh on Indian market performance. Nifty futures closed Monday night at 25,685.00 and rose to 25,730 in early Tuesday trading — a signal that Indian indices may open significantly higher.
European markets advanced on Monday as optimism over the resolution of the US government deadlock spread. Concerns about overvaluation in the AI sector took a back seat. Spirits giant Diageo gained up to 6.9% after announcing a new CEO, while Swedish pharmaceutical company Camurus rallied 14.6% following successful trials of a new weight-loss drug.
The United States Senate took the first step toward resolving the government shutdown, sending Wall Street soaring. The House of Representatives is expected to vote on the bill later this week. Once passed by both chambers, the shutdown could be officially lifted.
Despite lingering worries about excessive investment in AI, inflated valuations, and the risk of stagflation — a mix of inflation and economic slowdown — markets celebrated a day of strong gains. Nvidia shares jumped 5.8%, leading the charge among AI-related stocks.
The Dow Jones Industrial Average closed 381.53 points (0.81%) higher at 47,368.63. The S&P 500 gained 103.63 points (1.54%) to close at 6,832.43, while the Nasdaq Composite climbed 522.64 points (2.27%) to finish at 23,527.17. US futures were marginally higher in early Tuesday trading, with the Dow up 0.05%, the S&P 0.08%, and the Nasdaq 0.11%.
Asian markets extended the rally. Investor enthusiasm for AI and relief over the improving US fiscal situation fuelled gains across the region. South Korea’s KOSPI, which had surged 2.5% on Monday, rose another 2% on Tuesday morning. Japan’s Nikkei climbed nearly 1%, while Hong Kong’s Hang Seng rose 0.40%, and China’s Shanghai Composite gained 0.10%.
On Monday, Indian markets attempted to ride the global wave of optimism but were restrained by heavy foreign investor selling. After touching an intraday high, the Sensex and Nifty both closed slightly lower. The Sensex fell 219 points from the day’s peak, while the Nifty slipped 79 points.
Despite this, both indices ended in the green — the Nifty up 82.05 points (0.32%) to 25,574.35 and the Sensex up 319.07 points (0.38%) to 83,535.35. The Bank Nifty gained 0.10% to close at 57,937.55. The BSE Midcap Index rose 0.47% to 60,124.25, but the Small Cap Index dipped 0.35% to 18,138.60.
Market breadth remained negative, with 1,918 stocks advancing against 2,423 declines on the BSE. On the NSE, 1,496 shares rose while 1,629 fell. Foreign institutional investors (FIIs) were net sellers to the tune of ₹4,114.85 crore, while domestic funds bought shares worth ₹5,805.26 crore.
Analysts expect Nifty to test 25,700–25,800 levels if today’s rally sustains. Support lies near 25,515 and 25,485, while resistance is seen at 25,645 and 25,675.
A major development unfolded at Britannia Industries as executive vice-chairman, managing director, and CEO Varun Berry resigned. The board accepted his resignation with immediate effect. Rakesh Hargave, who recently stepped down as CEO of Birla Opus Paints, has been appointed as Britannia’s new CEO and MD. Hargave, an FMCG veteran, was earlier expected to join in December under Berry’s mentorship. The company has not yet provided reasons for the accelerated transition.
Several companies are scheduled to release their quarterly results today, including Bajaj Finserv, Balrampur Chini, Bharat Forge, Bikaji, Cera Sanitaryware, Concor, Dhampur Sugar, ESAF, Finolex Cables, Fortis Health, Godrej Industries, Gokaldas Exports, GSFC, HT Media, Jupiter Wagons, PC Jewellers, RVNL, Tata Power, Texmaco Rail, and Thermax.
Tata Motors will list shares of its commercial vehicle business — Tata Motors Commercial Vehicles Ltd — on stock exchanges today, following the earlier listing of its passenger vehicle arm.
Bajaj Finance reported a 22% year-on-year rise in net interest income to ₹10,785 crore and a 21.9% increase in net profit to ₹4,875 crore. The company, however, revised its asset growth guidance from 24–25% to 22–23%.
HUDCO’s net interest income surged 31.8% to ₹1,050 crore, while net profit rose 3% to ₹709.8 crore.
Vodafone Idea narrowed its quarterly loss to ₹5,524 crore — its lowest in 19 quarters — with revenue up 1.6% at ₹11,022 crore and operating profit margin improving to 41.9%.
ONGC’s consolidated profit grew 28.2% to ₹12,615 crore despite a 0.9% decline in revenue. The company announced a dividend of ₹6 per share.
Bharat Electronics secured contracts worth ₹792 crore for drones and communication systems.
CarTrade Tech is reportedly in the final stages of acquiring rival online auto marketplace CarDekho.
Gold prices have surged nearly 3% as optimism over the end of the US shutdown bolstered safe-haven demand. The correction phase now appears to be over, with prices approaching record highs. Though still about 6% below October’s peak, gold’s renewed strength has surprised analysts. Earlier predictions from major banks placed December-end prices between $3,290 and $4,000 per ounce, averaging around $3,400. Those forecasts may now be revised upward, with 2026 targets of $4,500–$5,000 per ounce.
On Monday, gold climbed $115.30 (2.88%) to close at $4,116.90 per ounce, and early Tuesday prices rose 0.60% further to $4,142. In Kerala, 22-carat gold surged ₹1,320 on Monday to reach ₹90,800 per sovereign. The previous record was ₹97,360.
Silver’s spot price jumped 4.5% to $50.56 per ounce and rose further to $50.91 in early trade. Supply shortages, industrial demand, and the US Geological Survey’s classification of silver as a critical mineral are driving prices higher.
Platinum stood at $1,580, palladium at $1,400, and rhodium at $7,825.
Industrial metals extended their rally. Copper gained 0.78% to $10,798.80 per tonne, aluminium rose 0.51% to $2,866.44, while zinc, tin, and nickel advanced modestly. Lead was the only metal to fall.
Global rubber prices edged up 0.24% to 169.10 cents per kg. Cocoa gained 1.08% to $6,078.03 per tonne, coffee rose 1.98%, while tea prices fell sharply by 1.73%. Palm oil prices were almost unchanged.
The dollar index was little changed at 99.59 on Monday, inching up to 99.72 early Tuesday. The dollar strengthened slightly against major currencies — the euro slipped to $1.1556, the pound to $1.3169, and the yen to 154.14 per dollar. The 10-year US Treasury yield stood steady at 4.122%.
In India, the rupee weakened by four paise to close at 88.70, with the Reserve Bank of India continuing active intervention. The Chinese yuan remained stable at 7.12 per dollar.
Crude oil prices showed little movement. Brent crude closed at $63.97 per barrel, edging down to $63.85 in early trade. WTI traded at $59.92 and Murban crude at $66.37. Natural gas rose 1% to $4.38.
Cryptocurrencies moved in mixed directions. Bitcoin traded below $106,000, Ethereum hovered near $3,570, and Solana rose above $167.
