Indian Markets Open Higher as Trump Postpones EU Tariff Decision
As of 9:17 a.m. IST, the Nifty 50 climbed 0.63 per cent to 25,006.25, while the BSE Sensex advanced 0.65 per cent to 82,231.26.
Market Update at 10:20 AM: India's benchmark indices started Monday’s session on a positive note following U.S. President Donald Trump's decision to delay imposing tariffs on the European Union. This move helped ease immediate concerns over global trade tensions.
As of 9:17 a.m. IST, the Nifty 50 climbed 0.63 per cent to 25,006.25, while the BSE Sensex advanced 0.65 per cent to 82,231.26. All 13 key sectoral indices opened in the green. Broader markets also saw gains, with the Nifty Small-Cap and Nifty Mid-Cap indices both rising around 0.4 per cent.
Trump announced on Sunday that he would postpone the proposed 50 per cent tariffs on EU imports. The extension came after European Commission President Ursula von der Leyen requested more time to finalise negotiations, now scheduled to continue until July 9.
Pre-Market Update at 8:00 AM: Indian stock markets are set for a positive start on Monday, May 26, buoyed by firm global cues. As of 7:33 am, Gift Nifty was trading around 24,940—up 57 points from the previous close—signalling a likely green opening.
Asian markets began the week with mixed cues. Japan’s Nikkei 225 rose 0.49 per cent, whereas Hong Kong’s Hang Seng slipped 0.4 per cent. In the U.S., stock futures edged higher after President Donald Trump deferred proposed tariffs on the European Union, providing some relief to global investors.
Back home, investors will be tracking a series of important developments through the week, including the release of final Q4 corporate results, economic indicators like PMI and GDP data, F&O expiry for the May series, and trends in foreign fund activity.
In a significant update, India has surpassed Japan to become the fourth-largest economy globally, according to NITI Aayog CEO BVR Subrahmanyam. He confirmed that India has reached a USD 4 trillion GDP milestone and could soon outpace Germany to take third place.
The Reserve Bank of India has announced a record surplus transfer of Rs 2.69 lakh crore to the central government for FY2024–25, up 27 per cent from Rs 2.1 lakh crore in FY2023–24.
India’s foreign exchange reserves dropped by USD 4.89 billion to stand at USD 685.73 billion as of the week ending May 16. Despite the decline, reserves are still sufficient to cover approximately 10–12 months of imports.
Market participants will monitor stock-specific action as several companies announce their Q4 numbers today. The list includes General Insurance Corporation of India, Aurobindo Pharma, Sundaram Finance, Fertilisers and Chemicals Travancore, Gillette India, Sumitomo Chemical India, Bayer CropScience, KEC International, Brainbees Solutions, Blue Dart Express, and Schneider Electric Infrastructure.
Foreign Institutional Investors (FIIs) net bought Rs 1,794.59 crore worth of equities on May 23, while Domestic Institutional Investors (DIIs) were also net buyers, adding Rs 299.78 crore.
Indian benchmarks closed with solid gains on Friday. The Sensex surged 769.09 points to end at 81,721.08, and the Nifty 50 rose 243.45 points to close at 24,853.15. A rebound in the latter half of the session, fueled by short-covering, kept the indices in the green despite early volatility. The market ended the week on a positive note despite global concerns surrounding U.S. debt and interest rate stability.
U.S. equities closed in the red on Friday, extending their weekly losses. Renewed trade concerns, after President Trump floated the idea of 50 per cent tariffs on EU imports—dragged sentiment. The Dow Jones fell 256.02 points to 41,603.07, the S&P 500 dropped 39.19 points to 5,802.82, and the Nasdaq Composite lost 188.53 points to end at 18,737.21. Weekly losses stood at 2.47 per cent for the Dow, 2.61 per cent for the S&P 500, and 2.48 per cent for the Nasdaq. However, Trump has extended the tariff deadline to July 9 to allow further discussions with the EU.
Crude prices saw modest gains as tariff concerns eased. Brent crude was up 0.51 per cent at USD 65.11 a barrel, while WTI rose 0.49 per cent to USD 61.83. Meanwhile, gold prices dipped 0.5 per cent to USD 3,339.13 per ounce after a recent rally.
For today, Titagarh Rail Systems, Dixon Technologies, RBL Bank and Mannapuram Finance continue to remain under the F&O ban list.
Disclaimer: The article is for informational purposes only and not investment advice.