The domestic equity benchmarks, Sensex and Nifty 50, are likely to open flat on Tuesday following a strong surge in the previous session. However, positive global cues, including progress on the US-China trade front and easing India-Pakistan tensions, may help sustain bullish sentiment.

Asian equities were trading in the green, and US markets posted sharp gains overnight, marking the biggest single-day jump for the S&P 500, Nasdaq, and Dow Jones since 9 April.

On Monday, Indian markets staged an impressive rally, with benchmark indices logging their strongest single-day performance in four years, buoyed by a wave of positive developments such as the ceasefire between India and Pakistan and progress in US-China trade talks.

Domestic Market Recap

On Monday, Indian indices closed in the green, following the India-Pakistan ceasefire:

• Sensex skyrocketed by 2,975.43 points (3.74%) to close at 82,429.90
• Nifty 50 moved upward by 916.70 points (3.82%) to settle at 24,924.70

Gift Nifty

Gift Nifty was trading near 24,915, around 128 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Wall Street Performance

US indices saw a broad growth on Monday, following the US-China tariffs deal:

• Dow Jones: 1,160.72 pts (2.81%) to 42,410.10
• S&P 500: 184.28 pts (3.26%) to 5,844.19
• Nasdaq closed 4.35% higher by 779.43 at 18,708.34

Gold Prices

• Spot gold held at $3,235.37/oz 
• US gold futures gained by 0.5% to $3,243.50

Crude Oil Prices

• Brent crude slumped by 0.32% to $64.75/barrel
• US West Texas Intermediate (WTI) crude: -0.31% to $61.76/barrel

Major Global Events Driving Sentiment

1. PM Narendra Modi on Operation Sindoor: Prime Minister Narendra Modi stated that India has merely paused its military operations and remains prepared to respond on its own terms if provoked by any future terror attacks. In his national address, he emphasised that India will closely monitor Pakistan’s actions and warned that any attempt at “nuclear blackmail” will be met with decisive retaliation.
2. India-Pakistan Ceasefire: Following high-level discussions, the Director Generals of Military Operations (DGMOs) from India and Pakistan have reportedly agreed to uphold a mutual ceasefire, committing not to initiate any form of hostilities or aggressive actions against each other.

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