US markets gained yesterday on hopes that inflation will not increase in a way that could block interest rate cuts. Most Asian markets are trading higher today. Indian markets are also attempting to start the day on a positive note.
The dollar’s weakness and expectations of rate cuts have driven gold to fresh record highs, crossing $3,600 an ounce.
India–US relations remain unchanged. Donald Trump’s trade adviser Peter Navarro continued his criticism against India, though New Delhi has not responded. Indications suggest backchannel talks are still in progress with the Trump administration.
In the derivatives market, Gift Nifty closed at 24,959.50 on Monday night. This morning it rose to 24,962 before easing to 24,927. The signals point to another firm start for Indian equities.
European stocks advanced modestly on Monday. French Prime Minister François Bayrou lost a confidence vote and was forced to resign after facing strong opposition to his austerity proposals.
US markets ended with moderate gains after a volatile session. The Nasdaq Composite hit a record high. Nvidia, which had fallen in recent days, climbed 1% yesterday.
Meanwhile, Tesla’s board is considering a new share award for Elon Musk, which could lift his wealth beyond $300 billion. The grant would only be awarded if the company’s market capitalisation crosses certain thresholds, to secure Musk’s long-term commitment.
The Dow Jones rose 114.09 points (0.25%) to close at 45,514.95. The S&P 500 gained 13.65 points (0.21%) to end at 6,495.15. The Nasdaq Composite advanced 98.31 points (0.45%) to settle at 21,798.70.
US futures were marginally higher this morning, with the Dow up 0.04%, the S&P up 0.03% and the Nasdaq up 0.02%.
Asian markets showed mixed trends. Japan’s Nikkei surged 0.90% to top 44,000 for the first time, marking a record. Korea rose, China and Hong Kong indices gained, while Australia slipped.
Indian equities once again failed to hold on to intraday gains yesterday, with the Sensex ending 384 points below its peak and the Nifty 112 points lower.
A Republican lawmaker in the US Congress has introduced a bill proposing a 25% tax on offshore outsourcing contracts. President Trump has made no comment yet, but the move weighed on Indian IT stocks yesterday.
Infosys Technologies will hold a board meeting on September 11 to consider a share buyback. With the stock down 25% so far in 2025, the move is aimed at restoring investor confidence. Infosys last carried out a ₹9,300 crore buyback in 2022, and has repurchased shares four times in six years.
Auto and auto ancillary stocks provided the market’s lift yesterday as companies cut vehicle prices. Mahindra & Mahindra said it will share losses with dealers caused by older, higher-priced vehicles now being sold at reduced prices. Other firms may follow suit, boosting sales.
The Nifty Auto index jumped 3.3%. Ashok Leyland surged 5.08%, Tata Motors 4.25%, Bajaj Auto 4.08%, and Mahindra & Mahindra 4.01%. Bharat Forge gained 5.81% and Samvardhana Motherson rose 4.31%.
By the close, the Nifty was up 32.15 points (0.13%) at 24,773.15, while the Sensex gained 76.54 points (0.09%) to end at 80,787.30. The Bank Nifty rose 72.35 points (0.13%) to 54,186.90. The Nifty Midcap 100 gained 285.95 points (0.50%) to 57,361.15, while the Smallcap 100 advanced 29.10 points (0.16%) to 17,684.35.
Market breadth was positive, with advances outnumbering declines on both BSE and NSE.
Foreign investors sold equities worth ₹2,170.35 crore in the cash market on Monday, while domestic funds bought shares worth ₹3,014.30 crore.
The Nifty has once again closed above 24,700, with resistance seen at 24,850 and 24,940, and support at 24,750 and 24,675.
Voltamp Transformers’ promoter company will offload 7% of its stake in a bulk deal today.
Brigade Enterprises has signed a joint development agreement for a luxury residential complex in East Bengaluru, spread over 2.5 million sq ft and valued at ₹2,500 crore.
Godrej Consumer Products has launched a capacity expansion plan in Indonesia, aiming for a 15% increase.
RailTel Corporation has won a ₹396 crore ICT project for the education sector in Bihar.
In Kerala, the price of 22-carat gold rose by ₹320 across two increases on Monday, reaching ₹79,880 per sovereign. Prices are heading towards the ₹80,000 mark.
Silver also gained, closing at $41.25 an ounce on Monday before easing slightly to $41.17 this morning.
Base metals mostly fell, with copper slipping 0.71% to $9,810.50 a tonne, while aluminium rose 0.1% to $2,613.78. Nickel, lead, zinc and tin all weakened.
In commodities, natural rubber surged 211% to 178.70 cents per kg. Cocoa fell 5.62% to $6,966.86 a tonne, while coffee rose 2.54% and tea was unchanged. Palm oil rose 0.88%.
The US dollar index fell again, closing at 97.45, and was at 97.38 this morning.
The euro strengthened to $1.1767, the pound to $1.3553, while the Japanese yen weakened to 147.36 per dollar.
US 10-year Treasury bond yields fell to 4.049% as prices rose.
Currency markets in India were closed on Monday. The Chinese yuan remained steady at 7.13 per dollar.
Crude oil swung after OPEC announced a smaller-than-expected output increase. Brent crude touched $66.30 before closing at $66.02 yesterday and was at $66.18 this morning. WTI stood at $62.42, while Murban crude was at $68.87. Natural gas prices edged lower.
Bitcoin dropped to $111,400 this morning, while Ether fell to $4,290. Solana, however, climbed to $214.
