The Indian stock market is likely to open higher on Tuesday, driven by optimism over a potential US-China trade deal and expectations of an interest rate cut by the US Federal Reserve this week, despite mixed signals from global markets.
On Monday, domestic equities ended sharply higher, with both benchmark indices gaining over half a percent. The Sensex surged 566.96 points, or 0.67%, to close at 84,778.84, while the Nifty 50 rose 170.90 points, or 0.66%, to settle at 25,966.05. “The ongoing rally in domestic markets has been supported by firm global cues, optimism around a US-China trade agreement, and a sharp correction in precious metal prices. With the current month’s futures and options expiry approaching, investors are also adjusting their positions, further boosting market sentiment,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.
Globally, Asian markets were mostly lower on Tuesday. Japan’s Nikkei 225 fell 0.27%, Topix declined 0.61%, South Korea’s Kospi dropped 1.2%, and Kosdaq fell 0.6%, while Hong Kong’s Hang Seng index futures indicated a positive start. In contrast, Wall Street closed higher on Monday, with all three major indices posting record closing highs for the second consecutive day on hopes of a US-China trade deal and an anticipated Fed rate cut.
Key global developments include the meeting between US President Donald Trump and Japan’s new Prime Minister Sanae Takaichi, focusing on trade and security, and the signing of an upgraded China-ASEAN Free Trade Agreement, covering digital and green economy sectors.
Currency and commodity trends showed the US dollar index easing slightly to 98.666, with the yen at 152.35. Crude oil prices fell modestly, with Brent crude at $65.61 per barrel and WTI crude at $61.25 per barrel, reflecting subdued energy market activity.
Overall, positive domestic and global cues suggest that Indian equities may start the session on an upbeat note.
