Indian stock market: The equity benchmark indices, Sensex and Nifty 50, are expected to open lower on Monday, following weakness in global markets after the US President Donald Trump announced to impose an additional 100% tariff on imports from China.
Asian markets traded lower on Monday, while the US stock market crashed last week, with the S&P 500 and the Nasdaq suffering their largest single-day percentage drops on Friday since April 10.
This week, investors will focus on key stock market triggers, including the US-China tariff war, India inflation data, Q2 results, developments over US shutdown, IPO activity, flow of foreign funds, and other domestic and global macroeconomic data and geopolitical developments.
On Friday, the Indian stock market indices ended higher for the second consecutive session, with the benchmark Nifty 50 closing above 25,200 level.
The Sensex gained 328.72 points, or 0.40%, to close at 82,500.82, while the Nifty 50 settled 103.55 points, or 0.41%, higher at 25,285.35.
“We expect Indian equities to trade in a range with a positive bias, aided by supportive global cues and sustained buying interest in the market,” said Siddhartha Khemka – Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded lower on Monday after fresh US-China trade war spooked investor sentiment. Japanese markets are closed for the holidays. South Korea’s Kospi declined 1.35%, and the small-cap Kosdaq dropped 2.24%. Hong Kong’s Hang Seng Index futures indicated a lower opening.
Gift Nifty Today
Gift Nifty was trading around 25,327 level, a discount of nearly 83 points from the Nifty futures’ previous close, indicating a gap-down start for the Indian stock market indices.
Wall Street
US stock market slumped on Friday after President Donald Trump escalated his trade conflict with China after Beijing tightened its rare earth restrictions.
The Dow Jones Industrial Average declined 878.82 points, or 1.90%, to 45,479.60, while the S&P 500 slipped 182.60 points, or 2.71%, to 6,552.51. The Nasdaq Composite closed 820.20 points, or 3.56%, lower at 22,204.43.
Nvidia share price crashed 4.91%, Tesla stock price plunged 5.06%, Amazon shares tanked 4.99%, Advanced Micro Devices stock cracked 7.78%, while Apple shares declined 3.45%. Alibaba Group Holding, JD.com Inc and PDD Holdings fell between 5.3% and 8.5%, and Qualcomm shares fell 7.3%.
However, Wall Street futures rebounded, with the S&P 500 futures rallying 1.1%, while Nasdaq futures jumped 1.6%, after Trump he sounded more conciliatory over the weekend, posting that everything would be fine and the US didn’t want to “hurt” China.
Trump Tariffs on China
US President Donald Trump announced additional levies of 100% tariffs on China’s US-bound exports, along with new export controls on “any and all critical software” by November 1. Trump also called into question the prospects for a previously announced meeting set for three weeks from now with Chinese President Xi Jinping in South Korea, saying on Truth Social that “now there seems to be no reason to do so.”
However, Trump later said the US “wants to help China, not hurt it,” adding that “respected President Xi (Jinping)… doesn’t want Depression for his country.”
China on Trump Tariffs
China signaled that it would not back down in the face of a 100% tariff threat from Trump and urged the US to resolve differences through negotiations instead of threats. “China’s stance is consistent,” the Commerce Ministry said in a statement posted online. “We do not want a tariff war but we are not afraid of one.”
China Yuan
China lifted the official yuan midpoint to the strongest level in nearly a year. The People’s Bank of China (PBOC) set the midpoint rate at 7.1007 per dollar, its strongest since November 6, 2024. And, the official guidance rate was 203 pips firmer than a Reuters’ estimate of 7.1210.
Bitcoin Prices
Cryptocurrency markets fluctuated between gains and losses after a sharp selloff on Friday, with bitcoin last trading up 0.4% at $115,486.04. On Friday, Bitcoin prices initially fell more than 12% after Trump said he was raising tariffs on Chinese exports to the US to 100%. A record $19 billion in bets evaporated and crypto prices tumbled. More than 1.6 million traders were liquidated, according to data tracker CoinGlass.
Gold Prices
Gold prices rose to a record high, driven by safe-haven demand on fresh US-China trade concerns. Spot gold price rose 0.6% to $4,043.14 per ounce, after hitting an all-time high of $4,059.30 earlier in the day. US gold futures for December delivery gained 1.5% to $4,059.60.
Dollar
The US dollar recovered from a selloff in early trade. The dollar index, which measures the greenback’s strength against a basket of six currencies, edged higher to 99.002. Against the yen, the dollar was up 0.5% at 151.985, the euro fell 0.1% to $1.1609, and Sterling rose 0.1% to $1.33415. The offshore yuan traded at 7.137 yuan per dollar, tacking on 0.1%.
Crude Oil Prices
Crude oil prices rose after hitting five-month lows in the previous session on hopes of potential talks between US and China to ease trade tensions. Brent crude oil rallied 1.21% to $63.49 a barrel, after plunging 3.8% on Friday, while the US West Texas Intermediate (WTI) crude futures gained 1.32% to $59.68.
(With inputs from Reuters)
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