The domestic equity benchmark indices, Sensex and Nifty 50, are likely to begin Monday’s session on a positive note, taking cues from strong global market trends. Asian shares were trading in the green, and US stock futures edged higher after President Donald Trump announced a delay in tariffs on the European Union.

This week, market participants will keep an eye on key triggers such as the remaining Q4 earnings, domestic macroeconomic indicators, May F&O expiry, foreign fund inflows, and major global developments.

On Friday, Indian equity markets closed sharply higher, with the Nifty 50 ending above the 24,800 mark, driven by a boost in investor confidence.

Domestic Market Recap

On Friday, Indian indices closed in the green:

• Sensex surged by 769.09 points (0.95%) to close at 81,721.08
• Nifty 50 moved up by 243.45 points (0.99%) to settle at 24,853.15

Gift Nifty

Gift Nifty was trading near 24,920, around 40 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Wall Street Performance

US stock markets closed in the red on Friday, posting a weekly decline as renewed trade tensions resurfaced following President Donald Trump’s proposal to impose 50% tariffs on European imports:

• Dow Jones Industrial Average slipped by 256.02 (-0.61%) points to close at 41,603.07.
• S&P 500 declined by 39.19 points (-0.67%), ending at 5,802.82.
• Nasdaq Composite rose 188.53 points (-1%), finishing at 18,737.21.

Gold Prices

• Spot gold declined by 0.5% to $3,339.13/oz 
• US gold futures slumped by 0.8% to $3,337.40

Crude Oil Prices

Crude oil prices rose after President Trump extended the deadline for trade negotiations with the European Union, easing concerns over potential disruptions to global trade.

• Brent crude gained by 0.51% to $65.11/barrel
• US West Texas Intermediate (WTI) crude: 0.49% to $61.83/barrel

Major Global Events Driving Sentiment

1. Russia-Ukraine War: Russian forces launched a massive overnight assault involving 367 drones and missiles on multiple Ukrainian cities, including Kyiv, resulting in at least 12 deaths and many injuries, according to officials. Meanwhile, a Russian commander claimed President Putin’s helicopter was near the centre of a Ukrainian drone attack in Russia’s Kursk region on May 20.
2. Trump Tariffs: President Donald Trump has postponed the implementation of 50% tariffs on EU imports, extending the trade negotiation deadline to July 9. The decision follows a request from the EU Commission President for more time to finalize a favourable agreement, according to Reuters.
3. Indian Economy: India has surpassed Japan to become the world’s fourth-largest economy, announced NITI Aayog CEO BVR Subrahmanyam. He added that India’s GDP has reached $4 trillion and is on track to overtake Germany to become the third-largest economy globally.
4. RBI Dividend: The Reserve Bank of India (RBI) will transfer a record Rs 2.69 lakh crore surplus to the central government for FY25, marking a 27% increase over last year’s Rs 2.1 lakh crore payout.
5. Forex Reserves: India’s foreign exchange reserves dropped by $4.89 billion to $685.73 billion for the week ending May 16. Current reserves are sufficient to cover around 10 to 12 months of projected imports.