Indian Stock Market Today: 8 Key Updates for Traders — Gift Nifty, Trump-Takaichi Meet, Gold & Crude Prices

On Tuesday, Indian equity markets will most likely start off on a high note as the US markets were strong and a possible US-China trade agreement brought about some optimism. The Gift Nifty was 53 points higher at 26,066 which shows that Sensex and Nifty 50 will have a strong start.

The Indian indices enjoyed another day of gains on Monday, as the Sensex rose by 566.96 points (0.67%) to 84,778.84 and the Nifty 50 climbed 170.90 points (0.66%) to 25,966.05; all this was made possible by global markets' support and heavy decline in precious metal prices.

“Global discussions on US-China trade have produced optimism that along with a possible Fed rate cut has resulted in a positive investor sentiment in the market just before October series expiry,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd said.

Below are 8 significant market updates you need to know before the market opens for today:

1. Gift Nifty Suggests a Bull Market

At the time of trading, Gift Nifty was at 26,066 which was a premium of about 53 points over the previous day’s closing thus indicating a bullish atmosphere in the Indian market.

2. Asian Markets Mixed Along with Trump-Takaichi Meeting

Traders in Asian markets stayed cautious and were selling off some of their stocks as the meeting between President Trump and Japan's new Prime Minister Takaichi was considered to be decisive.

Nikkei 225: fell by 0.27%

Topix: fell by 0.61%

Kospi: fell by 1.2%

Kosdaq: fell by 0.6%

On the other hand, Hang Seng futures in Hong Kong showed the market opening slightly higher.

3. Wall Street Records New Heights Again

During the second consecutive session, all the major US indexes were at record closes, and this was mainly due to positive sentiments regarding the trade issue and a possible rate cut by the Fed.

Dow Jones: +0.71% (47,544.59)

S&P 500: +1.23% (6,875.16)

Nasdaq Composite: +1.86% (23,637.46)

The biggest gainers were Tesla (+4.31%), Nvidia (+2.81%), Apple (+2.28%), and Qualcomm (+11%).

4. Trump-Takaichi Trade and Security Discussions

In Tokyo, Donald Trump had a meeting with Japan's Prime Minister who is new Takaichi and this was her first major diplomatic contact since she came into office. Important discussion points were trade and defense as well as security in the region with updates being anticipated by the market that could influence Asia's trade.

5. China and ASEAN Trade Agreement Enhancement

China and the ASEAN nations have come to an agreement to enhance their free trade agreement by adding new aspects of digital trade, green economy initiatives, and new technologies which has resulted in a positive mood in the Asian economies.

6. Gold Quotes 2-Week Low Range

Gold prices continued to slide and trading near their two-week low which could be the result of the strong equity market.

Spot Gold: $3,981.67/oz (unchanged)

US Gold Futures (Dec): down 0.6% to $3,996.50/oz

7. Crude Oil Market Prices Declining

Oil prices fell slightly as the sellers were weighing the lesser demand against the geopolitical risks.

Brent Crude: down 0.02% to $65.61/barrel

WTI Crude: down 0.10% to $61.25/barrel

8. US Dollar Decline

The US dollar index decreased by 0.1% to 98.66, while the yen remained around 152.35 per dollar. The euro was slightly stronger at $1.1659 but still within its recent trading range.

Outlook:

It is anticipated that Indian markets will continue their upward course with the help of positive global clues and pre-Fed meeting optimism. However, investors may be a little hesitant since the monthly derivatives expiry is coming up later this week.