The market today is expected to open with both optimism and anxiety. Gains in the US and Asian markets, along with yesterday’s positive close, have raised hopes of another rally. At the same time, concerns are mounting over tariff issues.
The American administration has indicated contradictory positions regarding India on the tariff matter. US President Donald Trump posted on his social media that trade agreement discussions with India had been restarted and that he would soon be speaking with Prime Minister Narendra Modi. Meanwhile, media reports suggested that Trump is pressuring the European Union to impose a 100% tariff on India. If this report is accurate, it could place India in a major crisis.
In Qatar, Israeli airstrikes targeting Hamas leaders have heightened fears of further escalation in the West Asian conflict. Crude oil prices surged by one and a half per cent and indications point towards a further rise.
Gold prices, meanwhile, are climbing above 3,600 dollars an ounce on expectations that the US Federal Reserve will cut interest rates next week. In the derivatives market, Gift Nifty closed at 24,924 on Tuesday night but rose to 25,012 this morning, signalling a positive opening for Indian markets today.
Reports claim that US President Donald Trump is pressuring the European Union to impose a 100% tariff on India. He has also demanded that the same tariff be applied to China. According to the Financial Times, confirmed later by CNBC, the United States will impose equivalent tariffs in response to the EU.
Trump’s new strategy comes as Russian President Vladimir Putin shows no willingness to engage in peace talks to end the Ukraine war. After failing to achieve a ceasefire during discussions in Alaska, Trump has now taken a different route: targeting countries that buy crude oil from Russia. By imposing unbearable tariffs, he intends to stop them purchasing Russian oil and thereby force Russia towards a ceasefire.
The US has already imposed a 50% tariff on India. If the European Union also implements such punitive tariffs, India will face a severe crisis. Much of India’s exports go not only to the US but also to the EU. If both markets close their doors, it will be nearly impossible for India to cope.
European stocks ended Tuesday mixed. While the German index declined, others rose. Mining giant Anglo American announced a merger with Canada’s Teck Resources, sending both companies’ shares surging. The combined company will be known as Anglo Teck, headquartered in Canada.
In the US, markets set fresh closing records on Tuesday after heavy fluctuations. Despite data showing that employment growth was only half of what had previously been estimated, markets remained resilient. Figures revised growth for the year ending March from 1.8 million jobs to 911,000. JPMorgan CEO Jamie Dimon commented that while the US economy is weakening, it is too soon to conclude whether it is heading into a recession. He added that such employment data could force the Federal Reserve to reduce rates.
The Dow Jones index climbed 196.39 points (0.43%) to close at 45,711.34. The S&P 500 gained 17.46 points (0.27%) to finish at 6,512.61, while the Nasdaq Composite added 80.79 points (0.37%) to end at 21,879.49. Futures markets were mixed this morning, with the Dow down 0.17%, the S&P down 0.17%, and the Nasdaq up 0.09%.
Meanwhile, the Murdoch family dispute was finally settled. Lachlan Murdoch will retain control of Fox Corporation and its media assets, while the other heirs will receive financial settlements.
Oracle reported an extraordinary 1,529% surge in multi-cloud database revenue generated from deals with Amazon, Google, and Microsoft. CEO Safra Catz said that although revenue had declined in the last quarter, future earnings potential looked extremely promising. Oracle’s shares soared 27% in after-market trading, and its Indian subsidiary is also expected to gain today.
Apple unveiled its new iPhone 17 Air priced from 999 dollars, which will be available in stores from the 19th. The company also launched AirPods Pro 3 with live translation features, priced at 249 dollars, as well as the new Series 11 watches, which will see no price changes.
Asian markets traded mixed today. Japan’s Nikkei rose 0.45%, while indices in Australia, South Korea, China, and Hong Kong also gained. However, weaker-than-expected retail prices in China have raised fears of deflation in the economy.
Unlike in previous sessions, Indian markets held onto their gains yesterday. The Nifty extended its winning streak to a fifth consecutive day. IT stocks rallied strongly despite negative news, while pharmaceuticals, healthcare, and FMCG also contributed. Auto stocks, which had surged earlier, saw some profit-taking.
The Nifty rose 95.45 points (0.39%) to close at 24,868.60. The Sensex climbed 314.02 points (0.39%) to finish at 81,101.32, while Bank Nifty gained 29.20 points (0.18%) to 54,216.10. The Midcap 100 rose 103.20 points (0.18%) to 57,464.35, and the Smallcap 100 advanced 59.95 points (0.34%) to 17,744.30.
Breadth, however, leaned towards declines, with 1,918 stocks rising and 2,211 falling on the BSE. On the NSE, 1,483 shares advanced while 1,514 declined. On the highs and lows front, 121 NSE stocks hit 52-week highs while 51 touched lows. FIIs turned net buyers after several days, purchasing ₹2,050.46 crore worth of equities, while domestic funds bought ₹83.08 crore.
Breaking past the 24,800 resistance has boosted investor sentiment, with bulls now eyeing the 25,000 mark. The Nifty is expected to find support around 24,825 and 24,785, while resistance is seen at 24,905 and 24,935.
Vikram Solar reported an 80% rise in revenue with net profit surging six-fold to ₹133.4 crore in the first quarter.
Sumitomo Mitsui Banking Corporation announced plans to sell its 1.65% stake in Kotak Mahindra Bank in the bulk market today, with a floor price of ₹1,880 per share. The transaction is valued at around ₹6,166 crore.
Blue Jet Healthcare’s promoter Akshay Arora will offload a 10% stake across today and tomorrow.
Meanwhile, Bikaji Foods clarified that the Enforcement Directorate’s search was linked to the Rajasthan Premier League, stressing that the company had no illegal dealings and was merely a sponsor.
After surging to record highs, gold witnessed mild profit booking. Markets are betting that the Federal Reserve will continue cutting rates in the coming meetings. Traders expect interest rates to decline to 2.50% by mid-next year.
In the spot market, gold rose 2.80 dollars to close at 3,639.10 dollars an ounce on Tuesday but dipped to 3,627 dollars this morning. Futures are targeting 3,676 dollars and could test 3,700 dollars soon. In Kerala, the 22-carat gold price jumped by ₹1,000 to reach ₹80,880 per sovereign, crossing the ₹80,000 mark for the first time. Prices have risen by ₹3,240 so far this month.
Silver declined, closing at 40.91 dollars an ounce, compared with Monday’s 41.25. This morning, it traded at 40.88. Copper rose 0.12% to 9,822.40 dollars per tonne, and aluminium climbed 0.62% to 2,630.07 dollars. Nickel, lead, zinc, and tin fell.
Global rubber prices dipped 0.50% to 177.80 cents per kg. Cocoa fell 0.70% to 7,081.42 dollars per tonne, coffee dropped 1.87%, tea slumped 3.18%, and palm oil eased 0.16%.
The dollar index strengthened to 97.74 at Tuesday’s close and rose further to 97.82 this morning. The euro slipped to 1.1696 dollars, the pound to 1.3519 dollars, and the yen weakened to 147.43 per dollar. India’s rupee, which initially gained, ended weaker at 88.10 after touching 87.96 earlier in the day. The Chinese yuan appreciated to 7.12 per dollar, with speculation that the central bank is planning a gradual strengthening.
Crude oil prices edged higher after the Israeli strikes in Qatar. Brent closed at 66.39 dollars a barrel and climbed to 66.83 dollars this morning. WTI stood at 63.10 dollars, while Murban crude rose to 70.02 dollars. Natural gas prices fell slightly.
Cryptocurrencies remain volatile. Bitcoin climbed to 111,520 dollars this morning, Ether traded at 4,310 dollars, and Solana reached 217 dollars.
