Sensex and Nifty 50 are likely to open higher on Monday, boosted by strong overnight global cues amid optimism surrounding the US-China trade deal and easing geopolitical tensions as the Israel-Iran ceasefire remains in effect.

Asian markets rose, and US markets ended last week with gains across all three major indices, reflecting improving investor sentiment.

This week, market participants will closely monitor key triggers such as developments in US tariffs and trade talks, updates on the Israel-Iran conflict, a wave of IPOs and listings, foreign fund flows, crude oil price movements, macroeconomic data, and other global indicators.

However, on Friday, Indian stock indices extended their winning streak for the fourth straight session, with the Nifty 50 closing above the 25,600 mark.

Domestic Market Recap

On Friday, Indian indices closed in the green:

• Sensex gained by 303.03 points (0.36%) to close at 84,058.90
• Nifty 50 moved up by 88.80 points (0.35%) to settle at 25,637.80

Gift Nifty

Gift Nifty was trading near 25,770, around 20 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Wall Street Performance

US stock markets closed higher on Friday, with both the S&P 500 and Nasdaq achieving record-high closing levels.

• Dow Jones Industrial Average surged by 432.43 points (1.00%) points to close at 43,819.27.
• S&P 500 up by 32.05 points (0.52%), ending at 6,173.07.
• The Nasdaq Composite was trading higher by 105.55 points (0.52%), finishing at 20,273.46.

Crude Oil Prices

Crude oil prices declined by 1% as geopolitical tensions in the Middle East eased, and expectations grew for another output increase by OPEC in August.

• Brent crude slumped by 0.97% to $67.11/barrel
• US West Texas Intermediate (WTI) crude: -1.31% to $64.66/barrel

Gold Prices

Gold prices dropped to their lowest level in over a month as reduced tensions between the US and China weakened safe-haven demand.

• Spot gold was trading down by 0.3% at $3,264.64/oz 
• US gold futures slumped by 0.4% at $3,275.30

Overnight Major Global Events Driving Sentiment

1. US-China Trade Deal: US Treasury Secretary Scott Bessent announced that the US and China have resolved disputes over rare earth mineral and magnet shipments. He also stated that the Trump administration aims to finalize trade deals with 18 major partners by Labor Day, September 1.
2. Japan Factory Output: Japan’s industrial production grew by just 0.5% in May, falling short of the expected 3.5% increase. Manufacturers anticipate a modest 0.3% rise in June, followed by a 0.7% drop in July.
3. US Consumer Spending: US consumer spending unexpectedly declined by 0.1% in May, following a 0.2% gain in April. Economists had predicted a 0.1% rise.
4. US Inflation: The US PCE Price Index, the Federal Reserve’s preferred inflation gauge, rose 0.1% in May, matching April’s gain. On a yearly basis, it increased 2.3%, slightly up from 2.2% in April.
5. US Consumer Sentiment: Consumer sentiment in the US surged in June, with the University of Michigan’s final index jumping to 60.7 from its highest level in four months from 52.2 in May.

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