Indian stock market: The domestic equity market benchmark indices, Sensex and Nifty 50, are expected to open flat amid weak global market cues.
Asian markets traded lower, while the US stock futures declined after a strong performance in May, as the S&P 500 and Nasdaq registered their biggest monthly percentage gains since November 2023.
This week, investors will monitor key stock market triggers, including the Reserve Bank of India (RBI)’s Monetary Policy Committee (MPC) meeting, global tariff announcements, monthly auto sales, flow of foreign capital, macroeconomic data, and other key global market cues.
On Friday, the Indian stock market ended lower, with the benchmark Nifty 50 closing May with gains of 1.7%, its third consecutive month of rise.
The Sensex dropped 182.01 points, or 0.22%, to close at 81,451.01, while the Nifty 50 settled 82.90 points, or 0.33%, lower at 24,750.70.
“Strong institutional inflows and expectations of a positive domestic economic outlook continue to support market sentiment. However, global trade uncertainties and sector-specific challenges may limit upside potential in the near term. Investors are advised to stay diversified and closely track macroeconomic indicators and policy developments as markets transition into June,” said Vikram Kasat, Head – Advisory, PL Capital.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded lower on Monday after US President Donald Trump announced doubling of tariffs on steel imports to 50%, effective from June 4.
Japan’s Nikkei 225 dropped 0.89% and the Topix fell 0.65%. South Korea’s Kospi gained 0.16% while the Kosdaq traded flat. Hong Kong’s Hang Seng index futures indicated a lower opening. Markets in China, Malaysia and New Zealand are closed for the holidays.
Gift Nifty Today
Gift Nifty was trading around 24,870 level, a discount of nearly 1 point from the Nifty futures’ previous close, indicating a flat start for the Indian stock market indices.
Wall Street
US stock market ended volatile session little changed on Friday after President Donald Trump slammed China before sounding upbeat about reaching a trade deal.
The Dow Jones Industrial Average gained 54.34 points, or 0.13%, to 42,270.07, while the S&P 500 eased 0.48 points, or 0.01%, to 5,911.69. The Nasdaq Composite closed 62.11 points, or 0.32%, lower at 19,113.77. The S&P 500 rose about 6.2% in May, while the Nasdaq surged 9.6% for the month.
Nvidia share price fell 2.92%, Tesla stock price declined 3.34%, while Apple shares gained 0.45% and Microsoft stock rose 0.37%. Ulta Beauty shares jumped 11.8%.
Russia-Ukraine War
A Ukrainian drone attack has destroyed more than 40 Russian planes deep in Russia’s territory, while Moscow pounded Ukraine with missiles and drones just hours before a new round of direct peace talks in Istanbul.
Trump Tariffs
US President Donald Trump announced that the United States would double steel tariffs from 25% to 50% effective Wednesday, June 4. Trump also promoted the partnership between Japan’s Nippon Steel and US Steel.
US PCE Price Index
The Personal Consumption Expenditures (PCE) Price Index rose 0.1% last month after being unchanged in March. In the 12 months through April, PCE prices increased 2.1% after advancing 2.3% in March. Stripping out the volatile food and energy components, the PCE price index gained 0.1% last month.
India GDP
India’s economic growth slowed to 7.4% in the March quarter of FY25, bringing down the annual growth rate to 6.5% during 2024-25. The GDP growth in the January-March period was lower than the 8.4% expansion in the year-ago quarter.
Fiscal Deficit
India’s fiscal deficit for FY25 stood at ₹15.77 lakh crore, slightly higher than the ₹15.70 lakh crore estimated for the year. The latest figure is lower than the ₹16.54 lakh crore registered in FY24, which was 95.3% of the estimates for the year. The government’s fiscal deficit target was 4.8% of the GDP for FY25, with a further reduction to 4.4% targeted for 2025-26.
GST Collections
The gross Goods and Services Tax (GST) collections rose 16.4% year-on-year (YoY) to over ₹2.01 lakh crore in May, after a record high GST collection of ₹2.37 lakh crore in April.
Crude Oil Prices
Crude oil prices rallied after geopolitical tensions and trade risks increased, and as OPEC hiked production less than expected. Brent crude oil prices gained 2.09% to $64.09 a barrel, while the US West Texas Intermediate (WTI) crude futures rose 2.30% to $62.19.
(With inputs from Reuters)
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