Sensex and Nifty 50 are likely to start Tuesday’s session on a flat note as the overnight global stock markets reflect cautious sentiment. While Asian markets showed a mixed trend, US stock futures climbed after trade tensions between the US and the European Union eased.

On Monday, Indian equities extended their rally for a second straight session, closing higher.

Domestic Market Recap

On Monday, Indian indices closed in the green:

• Sensex surged by 455.37 points (0.56%) to close at 82,176.45
• Nifty 50 moved up by 148 points (0.60%) to settle at 25,001.15

Gift Nifty

Gift Nifty was trading near 25,040, around 5 points higher than the previous Nifty futures close, hinting at a lacklustre start for Indian markets.

Wall Street Performance

The US stock market remained closed on Monday in observance of the Memorial Day holiday. Meanwhile, US stock futures edged higher as investors reacted positively to President Trump’s decision to delay tariffs on imports from the European Union:

• 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 gained by 0.1% to $3,344.36/oz 
• US gold futures slumped by 0.6% to $3,344.60

Crude Oil Prices

Crude oil prices held steady as trade tensions between the European Union and the US eased, with investors awaiting the upcoming OPEC meeting for key decisions on supply policy.

• Brent crude slipped by 0.6% to $64.78/barrel
• US West Texas Intermediate (WTI) crude: -0.02% to $61.54/barrel

Major Overnight Stock Global Events Driving Sentiment

1. Japan Bond Yields: Yields on Japan’s super-long government bonds dropped sharply. The 30-year JGB yield declined 10 basis points to 2.935%, hitting its lowest since May 14, while the 40-year yield slid 10.5 basis points to 3.43%. The 20-year JGB yield was down 7 basis points at 2.435%. Meanwhile, the 10-year yield slipped 2 basis points to 1.485%, and the five-year yield remained unchanged at 1.01%, according to Reuters.
2. Japan’s Service-Sector Inflation: Japan’s service-sector inflation reached 3.1% in April, as measured by the services producer price index, which tracks the prices companies charge one another for services. This follows a revised 3.3% year-on-year increase in March.

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