Indian Markets Poised for a Strong Start: 3 Reasons Why Nifty Could Jump Above 24,500
Adding to the optimism, the India Meteorological Department (IMD) has predicted an early onset of the southwest monsoon
Indian markets are expected to open on a strong note this Monday, May 12, with early indications from Gift Nifty suggesting a sharp gap-up of 453 points. This places Nifty Futures above the 24,500 mark, hinting at a potentially historic start to the week.
One of the major reasons behind this bullish sentiment is the positive outcome of trade talks between the United States and China. Both countries concluded their two-day discussions in Geneva on a constructive note. U.S. officials hinted at progress in narrowing the trade gap, while Chinese representatives confirmed that some important agreements had been reached. Investors are now awaiting the official details expected to be released later today, which is keeping global market sentiment upbeat.
On the geopolitical front, tensions between India and Pakistan eased over the weekend. Both nations agreed to a ceasefire on Saturday evening, which provided some relief to investors. However, there have been reports of minor ceasefire violations from Pakistan’s side, prompting India to respond firmly, urging adherence to the truce. Despite the tensions, the move towards peace is seen as a stabilising factor for the markets.
Adding to the optimism, the India Meteorological Department (IMD) has predicted an early onset of the southwest monsoon, expected to reach Kerala by May 27—several days ahead of the normal date of June 1. This development is seen as a positive signal for the agriculture sector and rural consumption, which are important drivers of the Indian economy.
Apart from macro cues, investors will closely track corporate earnings today. Key companies such as Tata Steel, SRF, UPL, PVR Inox, and Raymond are scheduled to announce their Q4FY25 results. These numbers will help shape sentiment across specific sectors and may add further momentum to the market if the results exceed expectations.
In terms of institutional activity, Foreign Institutional Investors (FIIs) were net sellers on May 9, offloading shares worth Rs 3,798.71 crore. On the other hand, Domestic Institutional Investors (DIIs) stepped in with strong buying worth Rs 7,277.4 crore—their highest single-day purchase in over a month, which reflects strong domestic support.
Asian markets have opened higher today, taking cues from the progress in the U.S.-China trade discussions. The Hang Seng index rose more than 1%, while the Shanghai Composite gained about 0.70%, contributing to the overall positive tone in global equities.
Meanwhile, Wall Street ended on a mixed note last Friday. The Dow Jones slipped 0.3% to close at 41,249, the S&P 500 edged down by 0.1%, and the Nasdaq Composite remained flat at 17,928.
Disclaimer: The article is for informational purposes only and not investment advice.