The Indian stock market is in focus today as the Union Budget 2025-26 is set to be presented in Parliament. Investors and traders are bracing for volatility in the domestic equity and commodity markets, which remain open for a special trading session. Gift Nifty, Sensex, and Nifty 50 are expected to react sharply to the budget announcements, global market trends, and economic cues.
Let's dive into the major market shifts overnight that could shape today's trading session.
Indian Stock Market Opens on Budget Day
Unlike regular Saturdays, the BSE, NSE, and MCX are open today for trading, providing investors an immediate chance to respond to budget policies. The decision to allow a special trading session comes as the government aims to bolster economic confidence.
On Friday, the stock market extended its bullish run for the fourth consecutive session, with Sensex and Nifty 50 closing on a strong note. The Sensex surged 740.76 points (0.97%) to settle at 77,500.57, while the Nifty 50 jumped 258.90 points (1.11%) to close at 23,508.40. These gains came ahead of the much-anticipated budget announcement.
Global Market Trends Impact Indian Equities
Asian markets had a mixed closing, with Japan’s Nikkei rising by 0.15%, while South Korea’s Kospi declined 0.77%. Meanwhile, markets in China and Hong Kong remained closed due to holidays.
The US stock market ended lower on Friday amid uncertainty over Donald Trump's tariff threats on imports from Canada, Mexico, and China. This created a cautious sentiment among global investors.
Gift Nifty Indicates a Weak Opening
Gift Nifty was trading around 23,533, indicating a discount of nearly 87 points from the previous Nifty futures close. This suggests that Indian markets may open slightly lower due to weak global cues and nervousness ahead of the budget announcement.
Wall Street Closes Lower on Trade Tariffs and Inflation Worries
The US stock market faced losses, with Dow Jones dropping 337.47 points (0.75%) to 44,544.66, the S&P 500 falling 30.64 points (0.50%) to 6,040.53, and the Nasdaq Composite slipping 54.31 points (0.28%) to 19,627.44.
Tech stocks showed mixed results:
Nvidia stock price fell 3.7%
Apple shares eased 0.7%
Amazon stock gained 1.3%
Tesla surged 1.1%
Chevron tumbled 4.56%
Rising US Inflation Adds to Market Jitters
US inflation surged in December, with the Personal Consumption Expenditures (PCE) price index climbing 0.3% from the previous month. On a yearly basis, inflation rose to 2.6%, up from 2.4% in November. Rising inflation has added concerns about potential Federal Reserve interest rate hikes, keeping global markets on edge.
Trump's Tariff Threats Shake Market Confidence
Former US President Donald Trump has reiterated his plan to impose new tariffs:
25% tariffs on Mexican and Canadian goods
10% tariffs on Chinese imports
Possible tariffs on oil and natural gas by mid-February
This announcement led to uncertainty in the global trade markets, with investors worrying about its impact on global supply chains and corporate earnings.
US Dollar Strengthens, Gold Hits Record Highs
The US dollar gained after Trump’s tariff proposals. The dollar index rose 0.31% to 108.42, marking a weekly gain of 0.93%.
Gold prices soared past the $2,800 mark for the first time:
Spot gold rose 0.25% to $2,801.00 per ounce
US gold futures settled 0.4% lower at $2,835
This spike in gold prices reflects increased investor demand for safe-haven assets amid economic uncertainties.
Conclusion
The Indian stock market is set for a volatile trading session today as investors digest the Union Budget 2025-26, global trade tensions, inflation trends, and the latest Gift Nifty movements. The cautious start in Gift Nifty suggests a possible dip at opening, but all eyes will be on the budget announcements to gauge the long-term market direction.
Investors should stay vigilant, track policy updates, and be prepared for swift market movements throughout the day.
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