Indian equity benchmarks Sensex and Nifty 50 are likely to open on a positive note on Monday, supported by strong overnight global cues. Asian markets moved higher, with Japanese equities touching record highs, while US stock futures also edged up.

Market participants will track several key triggers this week, including developments related to the India–US trade deal, inflation numbers, Q3 corporate earnings, foreign fund flows, geopolitical updates, and other important domestic and global macroeconomic data.

Moreover, on Friday, Indian equities closed higher as selective buying in heavyweight stocks followed the Reserve Bank of India’s policy announcement.

Domestic Market Recap

On Friday, Indian indices closed in the green:

• Sensex gained by 266.47 points (0.32%) to close at 83,580.40
• Nifty 50 moved up by 50.90 points (0.20%) to settle at 25,693.70

Gift Nifty

Gift Nifty was trading near 25,947, around 212 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Overnight Wall Street Performance

The US stock market closed higher on Friday, with the Dow Jones Industrial Average soaring past the historic 50,000 level for the first time.

• The Dow Jones Industrial Average skyrocketed by 1,206.95 points (2.47%) to close at 50,115.67.
• S&P 500 scaled up by 133.90 points (1.97%), ending at 6,932.30.
• The Nasdaq Composite soared up by 490.63 points (2.18%), finishing at 23,031.21.

Gold Prices

• Spot gold was trading 1.4% higher at $5,029.09 per ounce.
• The US gold futures were higher by 1.4% at $5,051.0.

Crude Oil Prices

• Brent crude dropped by 0.72% to $67.56/barrel
• US West Texas Intermediate (WTI) crude was trading 0.71% lower at $63.09/barrel

Overnight Major Global Events Driving Sentiment

1. India–US Trade Deal: India and the United States unveiled an interim trade framework ahead of the proposed Bilateral Trade Agreement (BTA), with both countries committing to expand trade ties and cut US reciprocal tariffs to 18%.
2. Japan Election Results: Japanese Prime Minister Sanae Takaichi secured a historic election victory on Sunday, earning a strong mandate to pursue tax cuts and boost economic growth through higher government spending, Reuters reported. Japan’s first female prime minister led her conservative Liberal Democratic Party to a record 316 seats in the 465-member lower house, marking the party’s best-ever performance.
3. Japanese Bond Yields: Japanese equities surged to record highs, while bond prices fell and the yen weakened after Prime Minister Sanae Takaichi’s landslide victory in the snap election. Benchmark 10-year Japanese government bond futures slipped 0.37 yen to 131.22 yen, while the 30-year JGB yield jumped as much as 6.5 basis points to 3.615%.

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