Market Insights: GIFT Nifty Rises 0.4% as India Eyes Kashmir Tensions and US Inflation – Top 6 Cues to Watch Today!

In early trading today, the GIFT Nifty is signaling a strong start, gaining 102 points and hovering around 24,738. This positive movement comes on the heels of a tumultuous session on May 13, where the Sensex plummeted by 1,281.68 points (1.55%), and the Nifty fell 346.35 points (1.39%). With optimistic global cues and significant earnings reports on the horizon, let’s dive into the crucial market developments as of May 14, 2025.

Global and Domestic Market Insights

India’s Stance on Kashmir

On Tuesday, India firmly rejected a mediation offer from US President Donald Trump regarding the Kashmir conflict. The Ministry of External Affairs (MEA) reiterated that issues concerning Jammu and Kashmir are solely between India and Pakistan. They emphasized that their policy remains unchanged, stating, “Our position remains unchanged,” and insisted that all matters should be settled through bilateral discussions without third-party interference.

Positive Trends in Asian Markets

Asian markets are predominantly experiencing upward momentum, driven by reducing trade tensions between the US and China. Here’s a snapshot of the performance:

Japan’s Nikkei 225 increased by 0.37%, marking its fifth consecutive gain.
South Korea’s Kospi rose by 0.78%.
Australia’s S&P/ASX 200 remained relatively stable.

Mixed Performance on Wall Street

In the US, market performance was mixed as major indices exhibited varied results. The S&P 500 climbed by 0.72%, closing at 5,886.55, while the Nasdaq Composite surged 1.61% to finish at 19,010.08. Conversely, the Dow Jones Industrial Average fell by 269.67 points (0.64%), ending the day at 42,140.43.

Insights on US Inflation

Inflation in the US remained subdued in April, with prices for essentials like clothing and new vehicles stabilizing. This indicates that businesses have yet to pass the burden of increased tariffs onto consumers. The core consumer price index, which excludes volatile sectors like food and energy, inched up by only 0.2% from March, highlighting a trend of softer-than-anticipated inflation for three consecutive months.

US Dollar Update

The US Dollar Index (DXY), which gauges the dollar’s strength against a selection of six major currencies, dipped slightly by 0.02%, resting at 100.98. This index evaluates the dollar’s performance compared to currencies such as the British Pound, Euro, and Japanese Yen. On May 13, the Indian rupee depreciated by 0.06%, closing at 85.33 against the dollar.

Crude Oil Market Movements

Crude oil prices saw a slight decline in early trading on Wednesday, with both primary benchmarks reflecting modest losses:

West Texas Intermediate (WTI) fell by 0.28%, trading at $63.49 per barrel.
Brent crude decreased by 0.37%, currently priced at $66.39.

Foreign and Domestic Investor Actions

On May 13, foreign investors turned into net sellers, offloading shares worth ₹476.86 crore in Indian markets. In contrast, domestic investors remained optimistic, net buying equities worth ₹4,273.80 crore. Despite recent selling, foreign institutional investors (FIIs) are still net buyers for the month.

Gold Rates Today

In the gold market, prices rebounded quietly on Tuesday after a sharp drop of 3% on Monday. This resurgence can be attributed to global investors recalibrating their perspectives on the easing trade tensions between the US and China.

As per Goodreturns, the current rates for gold are as follows: