The GIFT Nifty suggests a cautious start to the trading session, currently resting at 24,920.50, reflecting a decline of 150 points in the early hours. This follows an impressive performance from the Indian stock market yesterday, where the Sensex surged by an impressive 2,975 points, closing at 82,429.90, marking its most significant single-day increase in a year. The Nifty also experienced substantial growth, climbing 916 points to finish at 24,924.70.
Key Market Indicators for May 13, 2025
Prime Minister Modi Addresses the Nation
In his latest address following the ‘Operation Sindoor’, Prime Minister Narendra Modi emphasized India’s resilience against any form of "nuclear intimidation" from Pakistan. He clarified that military actions were merely a temporary measure and future decisions would hinge on Pakistan’s conduct. Modi firmly stated, “Dialogue is impossible unless it focuses on ending terrorism and reclaiming Pakistan-occupied Kashmir (PoK).” His remarks highlight a renewed commitment in India’s ongoing battle against cross-border terrorism.
Positive Trends in Asian Markets
Asian markets experienced a significant upswing on Tuesday, buoyed by a new trade agreement between the US and China. Leading the charge, Japan’s Nikkei 225 surged 2.17%, while the Topix index climbed 1.77%. In South Korea, the Kospi index recorded a modest 0.13% rise, and the Kosdaq, which tracks smaller firms, saw a more robust 1.01% increase. Meanwhile, Australia’s S&P/ASX 200 index added 0.71% to its value.
US and China Reach Tariff Agreement
On Monday, the US and China announced a temporary rollback of tariffs on each other’s goods, alleviating some pressures from their ongoing trade tensions. This breakthrough emerged after extensive discussions in Geneva, with officials indicating substantial progress. The tariff relief, effective for 90 days starting May 14, is expected to provide a boost to global markets.
- The US will reduce tariffs on Chinese imports from 145% to 30%.
- China will cut its tariffs on American goods from 125% to 10%.
- Certain levies, particularly the 20% tariffs on fentanyl-related products established earlier this year, will remain unchanged.
Trump Expresses Interest in Peace Talks
Former US President Donald Trump has offered to participate in the upcoming Ukraine-Russia peace negotiations scheduled in Istanbul this week. This announcement follows Ukrainian President Volodymyr Zelensky’s plan to meet with Russian President Vladimir Putin in the same city. Trump, who has plans to visit Saudi Arabia, the UAE, and Qatar, indicated that he could attend the talks if they proceed as planned.
US Stock Market Rally
US stock indices experienced a significant rally, with the Dow Jones Industrial Average soaring 1,160.72 points or 2.81%, closing at 42,410.10. The S&P 500 jumped 3.26% to settle at 5,844.19, marking a 20% recovery since its April lows as tariff concerns eased. Leading the rally, the Nasdaq Composite surged by 4.35%, closing at 18,708.34, primarily driven by robust performances from technology stocks tied to China.
Dollar and Oil Prices Update
The US Dollar Index (DXY), which gauges the dollar’s strength against a basket of six major currencies, slipped 0.15% to 101.64. The rupee weakened by 0.39%, closing at 85.37 against the dollar on May 12.
In early trading on Tuesday, crude oil prices dipped slightly, with West Texas Intermediate (WTI) falling 0.11% to $61.88 per barrel, while Brent crude decreased by 0.14%, trading at $64.86.
Foreign Institutional Investments
After a brief hiatus, Foreign Institutional Investors (FIIs) returned as net buyers on May 12, breaking a 16-day streak of continuous buying. On that day, FIIs acquired shares worth ₹1,246 crore, while Domestic Institutional Investors (DIIs) also made net purchases of ₹1,448 crore. DIIs recorded gross purchases of ₹14,684 crore against sales of ₹13,235 crore, while FIIs bought equities worth ₹12,775 crore and sold ₹11,528 crore.
Gold Prices Drop
Gold futures on the Multi Commodity Exchange (MCX) experienced a significant decline of over 4% on May 12, 2025, as market sentiment improved following the US-China trade agreement and a ceasefire between India and Pakistan.
- 24-carat gold is priced at ₹96,870 per 10 grams.
- 22-carat gold costs ₹88,790 for the same weight.
- 18-carat gold is available at ₹72,650 for 10 grams.
This market overview highlights the evolving landscape of global trade and investment, emphasizing the interconnectedness of international events and their impact on local economies. Stay informed for further updates!
