Indian equity benchmarks opened with strong gains on Monday, tracking positive cues from Asia and a temporary reprieve on US-EU trade tensions. The Sensex surged over 500 points at the open, while the Nifty50 scaled past the 25,000 mark, as investors responded to the final leg of Q4 earnings and global developments.

As of 9:40 AM, Indian benchmark indices are trading on a strong note. The Sensex and Nifty 50 are up around 0.75% each.

On the primary market front, Aegis Vopak Terminals and Schloss Bangalore’s mainboard IPOs open for subscription today, while Unified Data-Tech Solutions (SME) marks its final subscription day.

India Becomes World’s 4th Largest Economy, Set to Overtake Germany by FY28: NITI Aayog

India has overtaken Japan to become the world’s fourth-largest economy, and is poised to surpass Germany within the next 2.5 to 3 years to claim the third spot, said NITI Aayog CEO B.V.R. Subrahmanyam on Saturday.

According to the International Monetary Fund’s (IMF) April 2025 World Economic Outlook, India’s GDP is projected to reach $4.187 trillion in FY26, narrowly surpassing Japan’s estimated GDP of $4.186 trillion for calendar year 2025. The gap is expected to widen further, with India’s GDP seen touching $4.601 trillion in FY27 compared to Japan’s $4.373 trillion.

Global Market Cues Lift Sentiment

Asian markets traded mostly higher after US President Donald Trump delayed the imposition of 50% tariffs on European Union imports until July 9, offering temporary relief to global investors. Japan’s Nikkei rose 0.7%, with the broader Topix up 0.53%. South Korea’s Kospi climbed 0.7%, while Australia’s ASX 200 remained largely flat.

In the West, all three major US indices closed lower on Friday amid profit booking and macroeconomic concerns. The S&P 500 slipped 0.67%, the tech-heavy Nasdaq Composite lost 1%, and the Dow Jones Industrial Average declined 0.61%, capping a weak end to the week on Wall Street. US stock futures inched up during early Asian hours. US markets will remain shut today in observance of Memorial Day.

Commodities Check | Gold Slips, Oil Inches Higher Amid Global Cues

Domestic gold futures edged lower on Monday morning, tracking a pullback in international prices as safe-haven demand softened. At around 9:10 AM, MCX Gold June 5 contracts were down 0.51% at ₹95,930 per 10 grams. The decline follows a global dip in gold prices from a two-week high, as improved trade sentiment cooled investor anxiety. According to Reuters, the EU requested more time for trade talks, which helped ease immediate concerns.

Last week, MCX gold had surged 2%, driven by a weaker dollar and rising US debt concerns. Going forward, the trajectory of gold will hinge on upcoming US economic data, dollar movement, and further trade-related developments.

Oil prices, meanwhile, edged up in early Asian trade as sentiment improved on signs of a stabilizing global outlook. However, gains remained limited due to lingering oversupply worries, with market participants closely watching for cues from OPEC+ ahead of its July meeting, where a production hike remains on the table.

Currency Watch | Rupee Opens Higher Amid Broad Asian Strength, Softer Dollar

The Indian Rupee opened with gains on Monday, tracking strength in other Asian currencies and a weaker US dollar. The local unit rose 17 paise to 85.05 against the greenback in early trade, following its sharpest single-day jump since November 2022 in the previous session. It had closed at 85.22 on Friday, according to Bloomberg data.

So far this month, the rupee remains down 0.66%. Regional peers   –  including the Korean won, Thai baht, and Indonesian rupiah   –  have gained between 2.5% and 5.5% amid improved risk sentiment and dollar softness.

The recent rally also comes on the back of the Reserve Bank of India’s ₹2.69 trillion dividend transfer to the government, a significant injection of fiscal liquidity. However, analysts note the full impact on system liquidity will unfold as government spending picks up pace.

Q4 Earnings Highlights:

• NTPC: Shares may react positively after the state-run power major posted a 22% YoY rise in Q4 net profit at ₹7,897 crore, aided by operational strength.
• Transrail Lighting: Stock in focus as Q4 consolidated net profit rose 27% to ₹126.6 crore, backed by robust order inflows and revenue growth.
• Ashok Leyland: The commercial vehicle major reported its best-ever quarterly and annual performance, with Q4 net profit up 32% YoY to ₹1,130 crore.
• JSW Steel: Gains likely as Q4 consolidated net profit rose 15.7% YoY to ₹1,503 crore, benefiting from softening input costs and margin expansion.
• Reliance General Insurance: Now under IndusInd International Holdings, the company posted a 12.5% rise in FY25 net profit to ₹315 crore.
• Glenmark Pharmaceuticals: Rebounded to a Q4 net profit of ₹4.65 crore from a ₹1,218 crore loss a year ago; revenue rose nearly 7% YoY to ₹3,220 crore.
  

Other Stocks in News:

• ONGC: In focus after announcing new offshore discoveries   –  Suryamani and Vajramani   –  in the Mumbai Offshore basin, with potential to boost future output.
• Info Edge (India): Watch for action after shareholders cleared a ₹1,000 crore infusion into its third venture fund to strengthen early-stage startup bets.
• Jaiprakash Associates: May see movement after lenders approved ₹936 crore in spending for Q1, including ₹856 crore in operational expenses and ₹79 crore in one-time outgo.

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