Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open lower on Monday following weakness in global markets.

Asian markets plunged, while the US stock market ended last week, after the US President Donald Trump levied tariffs on Canada, Mexico and China.

On Saturday, the Indian stock market ended the special trading session on a flat note after the presentation of the Union Budget 2025.

The Sensex gained 5.39 points, or 0.01%, to close at 77,505.96, while the Nifty 50 settled 26.25 points, or 0.11%, lower at 23,482.15.

This week, investors will watch out for key stock market triggers, including the RBI monetary policy, Bank of England meeting, policies from US President Donald Trump administration, next set of corporate earnings, flows of foreign funds, trends in crude oil prices and other key domestic and global macroeconomic data.

“While the Budget failed to cheer the markets, sectoral stocks from consumer durables, FMCG, and automobile space attracted significant buying interest after the government announced major income tax relief for the salaried class. Also, will the RBI soften its stance and announce any rate cut in next week’s credit policy will be interesting to watch out for. However, investors need to watch out for global developments, as any uptick in US bond yields and FII selling could dampen sentiment,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian stock markets tumbled on Monday and US’ tariffs on Canada, Mexico and China triggered fears of a broad trade war.

Japan’s Nikkei 225 declined 1.84%, while the Topix dropped 1.75%. South Korea’s Kospi plunged 2.32% and the Kosdaq fell 1.9%. Chinese markets remain closed for the Lunar New Year holiday.

Gift Nifty Today

Gift Nifty was trading around 23,383 level, a discount of nearly 170 points from the Nifty futures’ previous close, indicating a gap-down start for the Indian stock market indices.

Wall Street

US stock futures plunged on Sunday after new US tariffs on goods from Canada, Mexico and China.

Futures tied to the Dow Jones Industrial Average declined 463 points, or 1%, while S&P 500 futures dropped 1.6%. Nasdaq-100 futures were down 2.1%.

On Friday, Nvidia share price fell 3.7%, Apple shares eased 0.7%, Amazon stock price gained 1.3% and Tesla share price rallied 1.1%. Chevron shares fell 4.6% and Exxon Mobil stock dropped 2.5%.

Tariff War

US President Donald Trump imposed tariffs of 25% on Canadian and Mexican imports and 10% on Chinese goods. Mexico and Canada have vowed immediate retaliation and China said it would take “counter measures”.

Japan PMI

Japan’s factory activity fell at the fastest pace in 10 months on sluggish demand. The final au Jibun Bank Japan manufacturing purchasing managers’ index (PMI) slumped to 48.7 in January, lower than the 48.8 in the flash reading and 49.6 in December.

Dollar

The US dollar advanced 0.7% to 7.2552 yuan in the offshore market, while Japan’s yen was trading flat at 155.25 per dollar. The US currency climbed 2.3% to 21.15 Mexican pesos, the euro plunged as much as 2.3% to $1.0125 – the lowest level since November 2022 – before recovering some composure to change hands at $1.0259, Reuters reported. Sterling fell 0.8% to $1.23.

Oil Prices

Crude oil prices jumped on fears of crude supply disruption. Brent crude futures rose 0.8% to $76.29 a barrel, after touching a high of $77.34. US West Texas Intermediate crude futures were at $73.97 a barrel, up $1.44, or 2%.

(With inputs from Reuters)

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