Sensex and Nifty 50 are likely to open higher on Monday, tracking positive overnight global cues. Asian markets posted gains, while US stock indices ended higher last week. S&P 500 climbed to its highest level in over three months and closed above 6,000 for the first time since February 21. The Dow also touched a three-month high.

This week, investors will keep a close watch on key triggers such as domestic retail inflation, global tariff developments, foreign capital flows, macroeconomic indicators, and broader global market trends.

However, on Friday, Indian equity markets rallied sharply after the Reserve Bank of India slashed the repo rate by 50 basis points to 5.50% and lowered the Cash Reserve Ratio by 100 basis points to 3%.

Domestic Market Recap

On Friday, Indian indices closed in the green:

• Sensex gained by 746.95 points (0.92%) to close at 82,188.99
• Nifty 50 moved up by 252.15 points (1.02%) to settle at 25,003.05

Gift Nifty

Gift Nifty was trading near 25,167, around 70 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Wall Street Performance

The US stock market closed higher on Friday as a stronger-than-expected jobs report eased concerns about the health of the economy.

• Dow Jones Industrial Average surged by 442.88 points (1.05%) points to close at 42,762.62.
• S&P 500 up by 61.02 points (1.03%), ending at 6,000.32.
• The Nasdaq Composite was trading higher by 231.50 points (1.20%), finishing at 19,529.95.

Crude Oil Prices

• Brent crude slumped by 0.09% to $66.41/barrel
• US West Texas Intermediate (WTI) crude: -0.09% to $64.52/barrel

Gold Prices

• Spot gold sumped by 0.2% to $3,303.19/oz 
• US gold futures down by 0.7% to $3,323.40

Overnight Major Global Events Driving Sentiment

1. Japan GDP: Japan’s economy shrank at a slower pace than earlier estimated in the January–March quarter. Revised data showed the GDP contracted by an annualised 0.2%, compared to the initial estimate of a 0.7% drop and economists’ median forecast. On a quarterly basis, the economy was flat in real terms, better than the previously reported 0.2% decline.
2. US-China Trade Talks: Top US and Chinese officials will meet in London on Monday to ease tensions in their ongoing trade dispute. The US delegation includes Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer. Chinese Vice Premier He Lifeng will lead the delegation from Beijing.
3. US Nonfarm Payrolls: The US economy added 139,000 jobs in May, according to the nonfarm payrolls report, following a downwardly revised increase of 147,000 in April. The figure beat expectations of 130,000 jobs. The unemployment rate held steady at 4.2%, matching economists’ forecasts.

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