GIFT Nifty:
GIFT Nifty May 2025 futures were trading 24 points lower in early trade, suggesting a negative opening for the Nifty 50.
The HSBC 'flash' PMI data for April will be released at 10:30 a.m.
Institutional Flows:
Foreign portfolio investors (FPIs) bought shares worth 497.79 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,788.66 crore in the Indian equity market on 5 May 2025, provisional data showed.
According to NSDL data, FPIs have bought shares worth Rs 2986.28 crore in the secondary market during May 2025 (so far). This follows their purchase of shares worth Rs 3243.03 crore in April 2024.
Global Markets:
Most Asian stocks ticked higher on Tuesday as investors sifted through the latest whispers on U.S. trade moves and a weakening dollar. Japan and South Korea, meanwhile, hit the snooze button for public holidays.
India may be angling for a tariff truce, reportedly floating a zero-duty deal on steel, auto parts, and pharma goodies—provided the favor is returned. Over in Malaysia, officials said the U.S. is game for more talks and might even consider trimming tariffs.
Adding to the optimism, U.S. Treasury Secretary Scott Bessent chimed in Monday, saying deals were “very close”—a tune President Trump had already been humming over the weekend.
Meanwhile, China’s markets reopened post-Labor Day to a slightly more diplomatic mood between Washington and Beijing.
China’s Caixin Services PMI clocked in at 50.7 for April—a seven-month low and a step down from March’s 51.9. Still above the 50-mark (which separates growth from contraction), but just barely.
Across the Pacific, U.S. stocks dipped slightly on Monday as investors braced for the Federal Reserve’s next move. Energy stocks led the decline, with Wall Street adopting a “wait-and-see” stance amid shifting trade winds.
The Dow Jones edged down 0.24%, while the S&P 500 fell 0.64% and NASDAQ slipped 0.74%. Investors are eyeing the Fed’s two-day policy meeting starting Tuesday, with an interest rate verdict expected Wednesday.
Oil majors Exxon Mobil and Chevron both took hits as crude prices tumbled to a four-year low. Blame it on OPEC+ deciding to pump more oil for the second month running.
Skechers USA shares sprinted up over 24% after the company agreed to a $9.4 billion buyout by 3G Capital. Berkshire Hathaway stumbled 5% after reporting a 14% drop in Q1 operating earnings.
Domestic Market:
The headline equity benchmarks ended with modest gains Monday, supported by easing global trade tensions, sustained foreign institutional investor (FII) inflows, and a steady rise in India’s foreign exchange reserves, which have now increased for eight consecutive weeks. Adding to the positive sentiment, Brent crude prices dipped below $60 per barrel during the session, offering relief on the current account front. Investor confidence was further buoyed by record-high GST collections in April and a weakening U.S. dollar. The S&P BSE Sensex advanced 294.85 points or 0.37% to 80,796.84. The Nifty 50 index added 114.45 points or 0.47% to 24,461.15.