As the vibrant celebrations of Holi come to a close, the Indian stock markets are gearing up to reopen today, March 17, 2025. Investors are eager to see whether the extended break will inject new energy into trading or if a cautious attitude will prevail. Initial indications from the Gift Nifty suggest a promising start, hinting at potential gains for the day.
Global Market Influences Affecting Indian Stocks
A variety of global factors, from Wall Street’s performance to significant economic reports, will play a crucial role in shaping market trends today. Here’s a comprehensive look at the key global and domestic cues that could sway Indian markets.
Asian Markets Show Positive Trends
Asian markets are experiencing an upward trend this Monday. Notably:
- Japan’s Nikkei 225 opened 0.99% higher.
- The broader Topix index saw a rise of 1.10%.
- South Korea’s Kospi climbed 1.23%, while the small-cap Kosdaq edged up by 0.32%.
Gold Prices Reach New Heights
Gold prices have soared past the $3,000 threshold for the first time on March 14, marking the 13th all-time high this year. This surge is attributed to investors flocking to this safe-haven asset amid escalating trade tensions and new tariffs introduced by former President Donald Trump, which have added to market volatility.
In India, gold is seeing significant price increases:
- 24-karat gold is now priced at ₹8,966 per gram (or ₹89,660 for 10 grams).
- 22-karat gold is selling for ₹8,219 per gram (or ₹82,190 for 10 grams).
- 18-karat gold is available at ₹6,725 per gram (or ₹67,250 for 10 grams).
U.S. Market Recovery and Fed Policy Outlook
U.S. stocks bounced back on March 14, recovering from earlier setbacks. Highlights include:
- The Dow Jones surged by 674.62 points, closing at 41,488.19 (an increase of 1.65%).
- The S&P 500 rose by 2.13% to settle at 5,638.94.
- The Nasdaq Composite jumped by 2.61% to reach 17,754.09.
With the U.S. Federal Reserve set to commence its two-day FOMC meeting tomorrow, all eyes are on potential interest rate decisions. Analysts expect rates to remain steady within the 4.25%-4.50% range, following a 100 basis point cut since September 2024. Fed Chair Jerome Powell has highlighted the complexities that rising tariffs pose for controlling inflation, with the policy announcement scheduled for March 19.
Tariff Tensions and Market Sentiment
Trade tensions continue to loom large over global markets due to Trump’s tariff policies. In a recent statement, U.S. Secretary of State Marco Rubio reassured G7 ministers that these tariffs are not intended to target allies. However, Tesla has urged the administration to reconsider, warning that retaliatory tariffs could negatively impact U.S. exports.
Currency Movements and Institutional Trading Activity
On Monday morning, the U.S. Dollar Index (DXY) stood at 103.71, reflecting the dollar’s performance against a basket of six major currencies. The Indian rupee closed at ₹87.01 against the dollar on March 13, strengthening by 20 paise from the previous day.
In terms of trading activity, Foreign Institutional Investors (FIIs) sold off shares worth ₹792 crore on March 13. In contrast, Domestic Institutional Investors (DIIs) emerged as net buyers, acquiring shares valued at ₹1,723 crore.
Crude Oil Prices on the Rise
Crude oil prices have seen an uptick this Monday, with WTI crude trading at $68.27, up 1.64%, and Brent crude rising to $71.65, gaining 1.52% in early trading.
Notable Corporate Actions
Several companies will be trading ex-dividend starting today, including Castrol India, Power Finance Corporation, and Indian Railway Finance Corporation. Additionally, some stocks are set to trade ex-split and ex-bonus this week, creating opportunities for investors.
As the markets open, all eyes will be on how these factors play out and what opportunities may arise for savvy investors.
