Investor sentiment is buoyant this morning, supported by India's new status as the world's fourth-largest economy and relief over the postponement of US tariffs on European goods. Despite global markets closing lower on Friday, several overhanging risks appear to have eased over the weekend, setting the stage for a strong start to the week. Asian markets are trading higher, and Indian equities are expected to follow suit.
India is set to release its fourth-quarter GDP data on Friday, with growth expected to come in between 6.8 and 7.0 percent. This would mark a rebound from the third quarter’s 6.2 percent expansion.
In the derivatives segment, Gift Nifty closed at 24,883 on Friday night and climbed to 24,938 on Monday morning, indicating a likely positive open for Indian equities.
European markets ended sharply lower on Friday following Donald Trump’s announcement of 50 percent tariffs on European goods — a move that hit automobile manufacturers and weakened banking stocks. Investors shifted their holdings to safe-haven assets, including government bonds and the Swiss franc.
The announcement of 50 percent tariffs on European goods and 25 percent tariffs on Apple products jolted US markets on Friday. The iPhone-specific tariffs were later extended to cover all smartphones, raising fresh concerns over an intensifying trade war. However, markets were reassured Monday morning by news that the European tariffs have been deferred until 9 July, giving investors some breathing space.
Meanwhile, Trump clarified that the proposed merger of US Steel and Japan’s Nippon Steel will not lead to a foreign takeover. He stated that the company will remain headquartered in the US, with Nippon investing $14 billion and creating 70,000 jobs.
On Friday, the Dow Jones Industrial Average fell 256.02 points (0.61%) to close at 41,603.07. The S&P 500 dropped 39.19 points (0.67%) to 5,802.82, while the Nasdaq slid 188.53 points (1.00%) to 18,737.21.
US futures, however, surged Monday morning: Dow futures were up 0.76%, S&P 500 gained 0.89%, and Nasdaq rallied 1.68% — largely due to the tariff deferral.
Asian markets opened higher as well, with Japan’s Nikkei rising 0.70% and South Korean indices also trading in the green.
Indian equities posted a near one-percent gain on Friday, helping offset some of the week’s earlier losses. Foreign investors continued to add to their positions, albeit modestly. Net foreign inflows for May have reached ₹13,835 crore, up from ₹4,223 crore in April.
The Nifty rose 243.45 points (0.99%) to close at 24,853.15, while the Sensex added 769.09 points (0.75%) to finish at 81,721.08. Bank Nifty climbed 456.95 points (0.83%) to 55,398.25. The Nifty Midcap 100 gained 362.90 points (0.64%) to end at 56,687.75, and the Smallcap 100 advanced 140.25 points (0.80%) to 17,643.35.
Market breadth remained positive, with 2,323 advancing stocks versus 1,639 decliners on the BSE. On the NSE, 1,731 stocks advanced while 1,132 declined. Notably, 50 NSE stocks touched 52-week highs, while 17 hit 52-week lows. A total of 93 stocks hit upper circuits, while 48 hit lower circuits.
Foreign institutional investors (FIIs) were net buyers in the cash segment on Friday, purchasing shares worth ₹1,794.59 crore. Domestic institutional investors (DIIs) bought ₹299.78 crore worth of equities.
Despite Nifty closing higher, selling pressure persists. Immediate support is expected at 24,685 and 24,500, with resistance likely around 24,900 and 25,800.
After closing the week with a sharp uptick, gold prices slipped on Monday. Asian trading saw prices drop by $14 an ounce, with further weakness later. Gold had closed at $3,358.90 per ounce on Friday and fell to $3,331 before rebounding slightly to $3,340.
In Kerala, gold fell ₹280 per sovereign to ₹71,520 on Friday, but recovered ₹400 on Saturday to ₹71,920. Silver is currently trading at $33.35 an ounce.
Rubber prices dropped 1.11% to 169.50 cents per kilogram in the international market. Cocoa fell 4.52% to $9,815.45, and coffee eased by 0.34%. Palm oil rose 0.16%.
The dollar index closed 1% lower on Friday at 99.11 and dropped further to 98.89 on Monday morning amid ongoing trade tensions.
The euro rose to 1.1403 against the dollar, the pound strengthened to 1.3575, and the Japanese yen appreciated to 142.55 per dollar.
US bond prices edged higher, with 10-year Treasury yields falling to 4.509%.
The Indian rupee gained nearly 1% on Friday, with the dollar falling 79 paise to close at ₹85.21. The Chinese yuan remained stable at 7.20 per dollar.
Bitcoin touched $1,12,000 on Friday before easing over the weekend. It is trading at $109,000 on Monday morning. Ether remains near $2,550.
