Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to open higher on Tuesday, following gains in Asian peers.

Asian markets traded higher, while the US stock market declined overnight and closed off-lows after President Donald Trump decided to delay tariffs on Canada and Mexico by a month.

On Monday, the Indian stock market ended with significant losses amid weak global cues and concerns over low capex allocation in the Union Budget 2025.

The Sensex dropped 319.22 points, or 0.41%, to close at 77,186.74, while the Nifty 50 settled 121.10 points, or 0.52%, lower at 23,361.05.

“Slump in global equity markets weighed negatively on Indian benchmarks after Trump announced tariffs on China, Mexico and Canada which fuelled pessimism amongst the investors. Besides, rupee depreciating sharply and breaching above 87 mark against the dollar raised concerns that foreign investors are unlikely to reverse the selling trend,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded higher after US President Donald Trump paused tariffs on Mexico and Canada for a month.

Japan’s Nikkei 225 rallied 1.64%, while the Topix index surged 1.37%. South Korea’s Kospi gained 1.26% while the Kosdaq jumped 1.86%. Hong Kong’s Hang Seng index futures indicated a stronger open.

Gift Nifty Today

Gift Nifty was trading around 23,542 level, a premium of nearly 100 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.

Wall Street

US stock market ended lower on Monday, but partly recovered from initial steeper losses after President Donald Trump delayed tariffs on Mexico.

The Dow Jones Industrial Average declined 122.75 points, or 0.28%, to 44,421.91, while the S&P 500 dropped 45.96 points, or 0.76%, to 5,994.57. The Nasdaq Composite closed 235.49 points, or 1.2%, lower at 19,391.96.

Nvidia share price fell 2.8%, Apple shares declined 3.39%, Tesla stock price plunged 5.17% and Microsoft shares dropped 1%. Ford share price fell 1.9% and General Motors stock was down 3.2%. Tyson Foods shares gained 2.2%, while IDEXX Laboratories jumped 11.1%.

Trump Delays Tariffs

US President Donald Trump has agreed to pause planned tariffs for at least a month on Mexico and Canada. Trump’s tariffs against China are still slated to go into effect on Tuesday. Over the weekend, Trump had announced hefty new tariffs of 25% on imports from Mexico and Canada, and 10% on China.

US Manufacturing PMI

US manufacturing grew for the first time in more than two years in January amid strong orders. The Institute for Supply Management (ISM) said that its manufacturing PMI increased to 50.9 last month, the highest reading since September 2022, from 49.2 in December. It was the first time since October 2022 that the PMI rose above the 50 mark. Economists polled by Reuters had forecast the PMI rising to 49.8.

Gold Prices Today

Gold prices hit an all-time high on Monday, bolstered by safe-haven inflows. Spot gold rose 0.08% to $2,816.85 per ounce, after hitting a record of $2,830.49 earlier in the session. US gold futures settled 0.8% higher at $2,857.10.

Crude Oil Prices

Crude oil prices declined after Trump delayed the start of tariffs against Mexico and Canada, Reuters reported. Crude prices had soared as much as 3.7% on Monday, its biggest intraday advance in almost four months.

Brent crude oil gained 0.38% to $75.96 a barrel, while the US West Texas Intermediate (WTI) crude futures fell 1.19% to $72.29.

US Dollar, Treasury Yields

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.56% to 108.90, with the euro down 0.67% at $1.0293, Reuters reported. Against the Japanese yen, the dollar weakened 0.3% to 154.72.

The yield on benchmark US 10-year notes fell 3.4 bps to 4.533%. The 30-year bond yield fell 5.3 bps to 4.7591% from 4.812% late on Friday. The 2-year note yield rose 1.5 bps to 4.253%.

(With inputs from Reuters)

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