Market Outlook Today: Asia's Cautious Stance, Gold's Steady Trend, and Key US Market Indicators

Indian equities are poised for a momentary pause following a robust start to the week. Early indicators from the GIFT Nifty suggest a slight decline of 0.05%, signaling a flat or subdued opening for major indices such as the Sensex and Nifty. As traders gear up for today’s session, they will closely monitor both international trends and local developments to gauge the market’s next moves.

Market Overview from April 28, 2025

On Monday, April 28, the stock market experienced a significant uptick. The Sensex soared by 1,005.84 points, or 1.27%, concluding the day at 80,218.37. Similarly, the Nifty advanced by 289.15 points, representing a 1.20% increase to finish at 24,328.50.

Global Market Trends

Asian Markets

Asian markets opened with a cautious tone, reflecting investor concerns over two primary factors: the impending implications of U.S. tariffs and a wave of anticipated earnings reports from Wall Street. In this context:

South Korea’s Kospi dipped by 0.13%.
The technology-heavy Kosdaq posted a modest gain of 0.43%.
Australia’s S&P/ASX 200 rose by 0.38%.
Notably, Japanese markets were closed due to a public holiday.

U.S. Market Performance

In a mixed session on Wall Street, the S&P 500 managed a slight rise of 0.06%, closing at 5,528.75, marking its fifth straight day of gains. The Dow Jones Industrial Average saw a stronger performance, climbing 114 points (or 0.28%) to finish at 40,227.59. However, the tech-heavy Nasdaq struggled, dropping 0.1% to end at 17,366.13.

Currency and Commodities

U.S. Dollar Update

The U.S. Dollar Index (DXY), which tracks the dollar against a basket of six major currencies, fell 0.07% to 99.08. This index is pivotal for understanding dollar strength relative to currencies like the British Pound, Euro, and Japanese Yen. Meanwhile, the Indian rupee depreciated by 0.49%, closing at 85.03 to the dollar on April 29.

Crude Oil Prices

Crude oil witnessed a slight decline in early trading on Tuesday. Specifically:

WTI crude edged down 0.08% to $62.00 per barrel.
Brent crude dipped 0.16%, trading at $65.75.

Foreign and Domestic Investment Insights

Foreign institutional investors (FIIs) continued their buying spree in Indian equities, investing ₹2,474 crore on April 28, marking their ninth consecutive session of net buying. This influx has helped FIIs revert to net buyers for the month, reversing earlier outflows of nearly ₹35,000 crore. Domestic institutional investors (DIIs) also remained enthusiastic, adding ₹2,817 crore in stocks for the second day running.

Gold Market Snapshot

Gold prices saw a minor decline during the early hours of Tuesday’s Asian session, trading around $3,335 per ounce. This dip is attributed to a slight recovery in the U.S. dollar and easing diplomatic tensions between the U.S. and China, which has diminished gold’s appeal as a safe haven.

In India, gold maintains its luster for buyers. As per Good Returns, the price for 10 grams of 24-carat gold stands at ₹97,520, while 22-karat gold is priced at ₹89,390. For those considering 18-karat gold, the cost is ₹73,140 for 10 grams.

Upcoming Economic Indicators

As the week progresses, significant economic data is on the horizon. Investors are particularly focused on:

U.S. GDP figures due Wednesday.
Manufacturing PMI data set for Thursday.
Unemployment rate statistics on Friday.
Euro Zone’s core inflation (CPI) data for April.

Earnings Reports and Market Activity

The market will soon be inundated with updates across various sectors. Key auto sales figures are expected on May 1, along with vital macroeconomic indicators such as the Index of Industrial Production (IIP) and HSBC’s final Manufacturing PMI data. Additionally, major companies including BPCL, IOC, Kotak Mahindra Bank, SBI, Bajaj Finance, TVS Motor, and UltraTech Cement are slated to release their quarterly earnings, promising an eventful trading atmosphere.