Global markets witnessed a positive start to the week amid signs of easing trade tensions. While US markets remained closed on Monday for a holiday, President Donald Trump expressed readiness to postpone the imposition of a 50 percent tariff on European Union goods until July 9. The move lifted investor sentiment, helping several markets rebound.
Indian equities extended their rally on Monday, reinforcing bullish confidence. Despite ongoing foreign institutional investment, inflows remain modest. The next round of India–US trade negotiations is expected to take place in India, with reports suggesting meaningful progress.
In derivatives trade, Gift Nifty closed at 25,037 on Friday night, briefly rising to 25,062 on Tuesday morning before pulling back. This indicates the likelihood of a mildly positive start to the session.
European markets closed significantly higher on Monday, buoyed by Trump’s decision to delay tariffs on European goods.
US futures surged on Monday: the Dow Jones rose 392 points (0.94 percent), the S&P 500 gained 61.75 points (1.07 percent), and the Nasdaq climbed 260 points (1.23 percent).
Asian markets opened mixed on Tuesday, with key indices in Japan and South Korea trading lower.
Indian benchmarks ended Monday higher by nearly 1 percent but surrendered a considerable portion of intraday gains by the close. The Nifty ended above 25,000 while the Sensex settled above 82,000.
The Nifty rose 148.40 points (0.60 percent) to close at 25,001.15. The Sensex gained 455.38 points (0.56 percent), closing at 82,176.45. Bank Nifty advanced 173.75 points (0.31 percent) to 55,572.00. The Nifty Midcap 100 jumped 379.50 points (0.67 percent) to 57,067.25, while the Smallcap 100 index added 64.45 points (0.37 percent) to finish at 17,707.35.
Market breadth remained in favour of advances. On the BSE, 2,265 stocks gained while 1,816 declined. On the NSE, 1,735 stocks rose and 1,173 fell. Notably, 53 stocks hit 52-week highs, while 25 fell to 52-week lows. A total of 127 stocks hit upper circuits, while 68 reached their lower circuit limits.
Foreign institutional investors (FIIs) were net buyers in the cash market, purchasing shares worth ₹135.98 crore. Domestic institutional investors (DIIs) bought shares worth ₹1,745.72 crore.
Monday’s close signalled that the Nifty remains on an upward trajectory. The index could move towards the 25,200–25,300 range, although resistance is expected in that region. Immediate support is likely at 24,930 and 24,880, with resistance seen at 25,060 and 25,180.
With markets closed in the West on Monday, trading volumes were thin. Gold fell by $10.70 per ounce to close at $3,348.20 and slipped further to $3,340 in early trade on Tuesday.
In Kerala, the price of gold declined by ₹320 per sovereign to ₹71,600 on Monday. Silver is currently priced at $33.38 per ounce.
Amid ongoing trade tensions, the US dollar index declined by 1 percent on Monday to close at 98.80. The euro rose to $1.1404, the pound climbed to $1.358, and the Japanese yen strengthened to 142.15 per US dollar.
The yield on US 10-year Treasury notes dropped to 4.491 percent. The Indian rupee appreciated by 12 paise to close at 85.09 against the US dollar on Monday.
Bitcoin, which had surged to $1,12,000 on Friday, weakened over the weekend. It was trading at around $1,09,000 on Tuesday morning. Ether hovered near $2,565.
