Market Watch: Nikkei Surges 1%, Key Insights on US Markets, India-Pak Tensions, Gold Trends, and 8 Essential Cues for Today's Trading

Indian stock markets are poised for a promising start today, as the Gift Nifty indicates a 0.58% rise in early trading. This upbeat sentiment bodes well for key indices like the Sensex and Nifty, as traders prepare for a new session influenced by both international trends and local developments.

In the previous trading session, which took place on April 25, the Sensex experienced a decline of 588.90 points (or 0.74%), closing at 79,212.53, while the Nifty dropped 207.35 points (or 0.86%) to finish at 24,039.35.

Global Market Influences

Asian Market Overview

Asian markets are showing strength this Monday, buoyed by hopes of new stimulus measures from China and encouraging updates on U.S. trade talks with neighboring economies. Notable movements include:

Japan’s Nikkei 225: Up 0.82%
Topix Index: Increased by 1.11%
South Korea’s Kospi: Edged up by 0.32%
Kosdaq: Gained 0.29%
Australia’s S&P/ASX 200: Rose 0.44%

Geopolitical Concerns: The Pahalgam Attack

The recent terrorist attack in Pahalgam, Kashmir, has raised alarms not just locally but also on a geopolitical scale, particularly affecting relations between India and Pakistan. Investors should pay close attention to the escalating tensions, as India has pointed fingers at Pakistan, leading to a downgrade in diplomatic relations, including suspending the Indus Waters Treaty. Such instability may have significant implications for the Indian market, particularly in sectors sensitive to geopolitical shifts like defense, energy, and commodities.

With Prime Minister Modi committing to pursuing justice for the victims, global investors are advised to monitor these developments closely.

U.S. Market Performance

Wall Street ended the week on a high note, with the S&P 500 climbing 0.74% to 5,525.21 and the Nasdaq Composite surging 1.26% to 17,282.94. Meanwhile, the Dow Jones Industrial Average experienced a modest gain, closing 20 points higher at 40,113.50.

Currency and Commodity Updates

U.S. Dollar Insights

The U.S. Dollar Index (DXY), which assesses the dollar against a basket of six currencies, fell 0.07%, resting at 99.65 on Monday. The Indian rupee also saw an appreciation of 0.20%, closing at 85.44 against the dollar.

Crude Oil Prices

Crude oil prices are on the rise this Monday morning, with key benchmarks recording slight increases:

WTI Crude: Up 0.29% to $63.20 per barrel
Brent Crude: Increased by 0.24% to $67.03 per barrel

Foreign and Domestic Investment Trends

In a notable trend, foreign investors continued their buying spree for the eighth consecutive day on April 25, acquiring shares worth Rs 2,952 crore. Domestic investors also re-entered the market with purchases totaling Rs 3,540 crore.

Gold Price Movements

Gold prices have shown a slight decline, with the cost of 10 grams of 24-karat gold hovering around Rs 98,820, down by nearly Rs 1,000 from the previous week. Over the past three years, gold prices have seen a remarkable increase, doubling from May 2022 to April 2024, briefly surpassing the Rs 1 lakh mark on April 21.

Upcoming Economic Data Releases

This week is set to be eventful as crucial economic updates from the U.S. and the Euro Zone are on the horizon. Key dates to note include:

Wednesday: GDP numbers
Thursday: Manufacturing PMI figures
Friday: Unemployment rate data and Euro Zone core CPI for April

Trade Negotiations

On the trade front, the Trump administration is expected to maintain its momentum by hosting foreign leaders to discuss trade matters, following the recent 90-day tariff pause aimed at facilitating new bilateral agreements.

Corporate Actions to Watch

From April 28, shares of companies like HCL Tech, Tanla Platforms, and 360 ONE WAM will begin trading ex-dividend. This week also marks a significant time for shareholders as various stocks will turn ex-bonus.

Key Data and Earnings Reports

As the month begins, investors should prepare for a busy schedule filled with data releases and earnings reports. Monthly auto sales figures will be released on May 1, alongside macroeconomic indicators like IIP data and HSBC’s final Manufacturing PMI. Major corporations such as BPCL, IOC, Kotak Mahindra Bank, SBI, Bajaj Finance, TVS Motor, and UltraTech Cement are all set to unveil their quarterly results.