The GIFT Nifty is indicating a steady start to the trading day, hovering around the 24,575 mark or up 480 points in early hours. This comes against a backdrop of escalating tensions between India and Pakistan. Market participants will also be closely eyeing a fresh round of corporate earnings and key domestic cues. Here is a look at the global market cues shaping the mood this morning.
In the previous trading session, the benchmark indices witnessed a sharp sell-off as geopolitical tensions weighed heavily on sentiment. The Sensex plunged 880.34 points, or 1.10%, to close at 79,454.47, while the Nifty slipped 265.80 points, ending the day at 24,008, also down 1.10%.
Key global and domestic cues to know on May 12, 2025
India-Pakistan tension: Ceasefire and Operation Sindoor
After four days of heightened cross-border tensions, India and Pakistan agreed to a ceasefire on Saturday, May 10,. The agreement followed discussions between the Directors General of Military Operations (DGMOs) of both nations. The ceasefire came in the wake of India’s retaliatory response to the April 22 terror attack in Pahalgam, Kashmir, which claimed 26 lives. In a calculated move, India launched “Operation Sindoor,” a series of precision air and missile strikes aimed at dismantling terror infrastructure across Pakistan and Pakistan-occupied Kashmir (PoK).
The operation specifically targeted camps associated with terror outfits like Lashkar-e-Taiba (LeT), Jaish-e-Mohammed (JeM), and Hizbul Mujahideen (HM), avoiding Pakistani military installations to prevent the conflict from escalating further. According to official estimates, nearly 100 militants were eliminated in the offensive, including individuals allegedly linked to past high-profile attacks such as Pulwama.
Asian markets
Asian markets opened the week on a positive note as hopes rose for easing tensions between the US and China after the two nations held talks in Switzerland over the weekend. Japan’s Nikkei 225 edged up 0.36%, and the broader Topix also saw gains. South Korea’s Kospi advanced 0.67%, though the smaller Kosdaq dipped slightly. Australia’s S&P/ASX 200 climbed 0.3%.
US – China trade talks
Tensions between the US and China may be cooling after both sides indicated progress during their weekend trade talks in Switzerland. US Treasury Secretary Scott Bessent said the discussions as highly productive, while China’s Vice Premier He Lifeng said the two countries reached an “important consensus.” Officials hinted at a deal that could help narrow the U.S. trade deficit and promised to release a joint statement on Monday, calling it “good news for the world.”
US market
Wall Street wrapped up the week on a cautious note, with key indices showing minimal movement as investors remained on edge ahead of anticipated trade discussions. President Donald Trump’s comments on potential Chinese tariffs added to the unease, keeping market participants on the sidelines. The Dow Jones Industrial Average declined by 119.07 points, or 0.29%, settling at 41,249.38. The S&P 500 also dipped slightly, losing 4.03 points, or 0.07%, to close at 5,659.91. Meanwhile, the tech-heavy Nasdaq Composite stayed mostly flat, inching up just 0.78 points to end at 17,928.92.
US dollar
The US Dollar Index (DXY), which measures the dollar’s value against a basket of six foreign currencies, was down 0.02% at 100.57 Monday morning. The index evaluates the strength or weakness of the US dollar in comparison to major currencies. The basket contains currencies such as the British Pound, Euro, Swedish Krona, Japanese Yen, Swiss Franc, etc. The rupee appreciated 0.33% to close at 85.37 to the dollar on May 9.
Crude oil
Oil prices saw a mild rise in early Monday trading, with global benchmarks showing modest gains. West Texas Intermediate (WTI) inched up 0.11% to $61.09 per barrel, while Brent crude was slightly higher by 0.08%, trading at $63.96.
FII, DII
Foreign institutional investors (FIIs) broke their 16-session buying streak and turned net sellers, offloading Indian equities worth Rs 3,799 crore on May 9. This comes after they had pumped in nearly Rs 40,000 crore over the previous sessions. Domestic institutional investors (DIIs) also pared their positions, selling shares worth Rs 7,278 crore. During the day, DIIs recorded gross purchases of Rs 15,547 crore against sales of Rs 8,269 crore. Meanwhile, foreign portfolio investors (FPIs) bought equities worth Rs 11,483 crore and sold Rs 15,281 crore.
Gold rate today
Gold prices in India remained on a bullish trajectory, logging weekly gains of over 3% as global sentiment turned optimistic on the back of potential US-China trade talks and progress in the US-UK trade deal. On Friday, MCX gold futures for June 2025 expiry closed marginally higher at Rs 96,535 per 10 grams.
As per Goodreturns, 10 grams of 24-carat gold rate today is Rs 98,670, while 22-carat gold costs Rs 90,044. For those preferring 18-carat gold, the price is Rs 74,000 for the same weight.
Macroeconomic data
Investors will be keeping a close watch on key macroeconomic releases this week, including the Consumer Price Index (CPI), Wholesale Price Index (WPI), and India’s trade figures for exports and imports.
Corporate earnings
The corporate earnings season is set to pick up pace. Several major companies are lined up to report their quarterly results, including PVR INOX, Tata Steel, Bharti Airtel, Cipla, GAIL, Hero MotoCorp, Tata Motors, Lupin, Godrej Industries, and BHEL.