Gift Nifty was trading at approximately 23,020, about 20 points higher than the previous close of Nifty futures. This suggests that the Indian stock market indices may open with a flat to slightly positive trend.
The Indian stock market’s main indices, Sensex and Nifty 50, will likely start slowly on Tuesday, influenced by mixed signals from global markets.
Asian shares remained mostly unchanged as the US stock market was closed on Monday due to a holiday. Investors were paying close attention to statements from European Central Bank officials and analyzing other important economic data.
| Index | Change (Points) | Change (%) | Closing Value |
| Sensex | -19.89 | -0.03% | 75,390.50 |
| Nifty 50 | -24.65 | -0.11% | 22,932.45 |
Amidst the celebrations, there’s a growing concern about how long this upward trend can last. Yesterday’s trading was careful, with everyone expecting more ups and downs soon. Nifty ended the day a bit lower, reflecting a general mood of caution in the market, explained Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.
Here are some important factors from around the world that could influence the performance of the Sensex today:
Asian Markets
On Tuesday, Asian markets showed little movement following hints from European Central Bank officials about possible upcoming rate cuts. Japan’s Nikkei 225 and Topix indices remained steady. South Korea’s Kospi increased slightly, and the Kosdaq increased by 0.42%. Meanwhile, futures for Hong Kong’s Hang Seng index suggested a mildly lower start.
Gift Nifty Today
Gift Nifty was trading at around 23,020, about 20 points higher than the previous close of Nifty futures. This suggests that the Indian stock market indices are likely to start the day either flat or slightly positive.
Wall Street
On Monday, U.S. markets were closed for a holiday. Despite this, Nasdaq 100 futures increased by 0.4%, reaching a record high. Meanwhile, European markets saw slight gains.
T+1 Trading Cycle
Starting Tuesday, the U.S. stock market will adopt a T+1 trading cycle, meaning that the settlement of securities transactions will now occur one business day after the trade instead of the previous two. This change is under a new rule from the Securities and Exchange Commission aimed at shortening the settlement period.
ECB
European Central Bank officials are leaning towards lowering interest rates next week. Olli Rehn, a member of the ECB’s governing council, highlighted that inflation in the euro area is steadily decreasing. “Because of this trend, inflation is gradually moving towards our target of 2%. Therefore, June seems like the right time to adjust our monetary policy and begin reducing rates,” Rehn stated in a speech.
China Central Bank
The People’s Bank of China announced that it will be carrying out a central bank bill swap worth 5 billion yuan for 3 months on May 28th.
Oil Prices
Crude oil prices went up because things got tenser in the Middle East. West Texas Intermediate oil increased by 1.22% from Friday to $78.67 per barrel, but there wasn’t any final agreement on Monday because it was a holiday in the US. Meanwhile, Brent oil stayed steady at $83.06.
Dollar
The value of the US dollar went down a bit as people became a little more willing to take risks, but it stayed pretty stable before some important inflation information was released from big countries this week. The US dollar index dropped by 0.01% to 104.55 compared to a bunch of other currencies.
| Asian Markets | |
| Japan | Nikkei 225 and Topix indices remained steady. |
| South Korea | Kospi increased slightly, and Kosdaq increased by 0.42%. |
| Hong Kong | Futures for the Hang Seng index suggested a mildly lower start. |
| Gift Nifty Today, | |
| India | Gift Nifty trading around 23,020, 20 points higher than previous close. |
| Wall Street | |
| U.S. | Nasdaq 100 futures increased by 0.4% to a record high. |
| Europe | Slight gains observed in European markets. |
| T+1 Trading Cycle | |
| U.S. Stock Market | Adopts T+1 trading cycle from Tuesday, settlement now one business day after trade. |
| ECB | |
| European Central Bank | Leaning towards lowering interest rates next week due to decreasing inflation. |
| China Central Bank | |
| People’s Bank of China | Carrying out 5 billion yuan central bank bill swap for 3 months on May 28th. |
| Oil Prices | |
| Crude Oil | West Texas Intermediate increased by 1.22% to $78.67 per barrel. |
| Brent oil remained steady at $83.06 per barrel. | |
| Dollar | |
| US Dollar | Slightly decreased as risk appetite increased, US dollar index dropped to 104.55. |
FAQ Gift Nifty, Asian markets to oil prices
How does GIFT Nifty affect Nifty?
GIFT Nifty, or the Gujarat International Finance Tec-City Nifty, can influence the broader Nifty index through its constituent stocks. Any significant movement in the prices of stocks listed in the GIFT Nifty index can impact the overall Nifty index, albeit to varying degrees depending on the weightage of those stocks in the index. Traders and investors often monitor both indices to gauge market sentiment and identify potential trading opportunities.
How is GIFT Nifty calculated?
GIFT Nifty is calculated similarly to other stock market indices, such as the Nifty 50. It comprises a basket of stocks selected based on predefined criteria, like market capitalization, liquidity, and sector representation. These stocks’ prices are then weighted according to their market capitalization or another predetermined methodology. The index value is derived from the aggregate performance of these constituent stocks, providing a snapshot of the GIFT City’s financial market.
How to trade in GIFT Nifty?
Trading in GIFT Nifty involves accessing the platforms where derivatives or exchange-traded funds (ETFs) linked to the index are listed. Investors can trade GIFT Nifty futures contracts or options contracts through authorized brokers. Alternatively, they can invest in ETFs that track the performance of the GIFT Nifty index. Before trading, individuals should conduct thorough research, understand the risks involved, and consider consulting with financial advisors.
How changes in oil price affect Indian stock market?
Changes in oil prices can have a significant impact on the Indian stock market, primarily due to India’s dependence on oil imports to meet its energy needs. When oil prices rise, it often leads to higher import bills, which can negatively affect India’s trade balance, inflation, and fiscal deficit. As a result, sectors sensitive to oil prices, such as energy, transportation, and manufacturing, may experience fluctuations in stock prices. Conversely, a decrease in oil prices can benefit industries reliant on oil as a key input, potentially boosting their profitability and stock prices. Overall, oil price movements can influence investor sentiment and market dynamics in India.
