The GIFT Nifty is indicating a subdued start to the trading day, hovering around the 24,920.50 mark or down 150 points in early hours. In the previous day’s trading session, the Indian stock market had a strong day, with the Sensex rising by 2,975 points to close at 82,429.90, its biggest gain in a year. The Nifty also saw a big jump, gaining 916 points to end at 24,924.70.
Key global and domestic cues to know on May 13, 2025
PM Modi’s Post-Sindoor Message
In his first national address after the ‘Operation Sindoor’, Prime Minister Narendra Modi made it clear that India won’t bow to any “nuclear blackmail” from Pakistan. He said the military action was only a pause, not the end, and warned that future steps would depend on how Pakistan behaves. Modi firmly stated that there can be no dialogue unless it is about ending terrorism and the return of Pakistan-occupied Kashmir (PoK). “Terror and talks can’t go hand in hand, terror and trade can’t go hand in hand, water and blood can’t flow together,” he said, outlining a tough new stance in India’s fight against cross-border terror.
Asian markets
Asian markets saw a strong uptick on Tuesday, following a breakthrough trade deal between the US and China. Japan led the charge, with the Nikkei 225 jumping 2.17%, while the Topix index also saw a notable 1.77% rise. In South Korea, the Kospi index inched up by 0.13%, but the Kosdaq, which tracks smaller companies, experienced a more substantial 1.01% gain. Meanwhile, in Australia, the S&P/ASX 200 added 0.71%.
US and China agree to roll back tariffs
The US and China reached an agreement on Monday to temporarily reduce tariffs on each other’s goods, easing the pressure of their ongoing trade war. This breakthrough comes after intense negotiations in Geneva, where officials from both nations reported making “substantial progress.” The tariff rollback will be in effect for 90 days, starting from May 14, offering a welcome respite to global markets.
Under the agreement, the US will lower its tariffs on Chinese imports from 145% to 30%, while China will reduce its duties on American goods from 125% to 10%. However, certain levies, like the 20% tariffs on fentanyl-related products imposed by Trump earlier this year, will remain in place.
Trump offers to join Ukraine-Russia peace talks
US President Donald Trump offered to participate in the Ukraine-Russia peace talks set to take place in Istanbul this week. This came a day after Ukrainian President Volodymyr Zelensky announced his intention to travel to Istanbul for a potential meeting with Russian President Vladimir Putin. Trump, who is scheduled to visit Saudi Arabia, the UAE, and Qatar, stated that he could attend the talks if they proceed as planned.
US markets
US stock markets saw a rally, with the Dow Jones Industrial Average soaring by 1,160.72 points, or 2.81%, closing at 42,410.10. The S&P 500 also surged, jumping 3.26% to settle at 5,844.19, marking a 20% recovery since its low in April, as concerns over tariffs eased. The Nasdaq Composite led the charge, gaining 4.35% to close at 18,708.34, driven by strong performances from tech stocks, particularly those linked to China.
US dollar
The US Dollar Index (DXY), which measures the dollar’s value against a basket of six foreign currencies, was down 0.15% at 101.64 Tuesday 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 depreciated 0.39% to close at 85.37 to the dollar on May 12.
Crude oil
Oil prices saw a slight dip in early Tuesday trading, with both major benchmarks showing modest declines. West Texas Intermediate (WTI) edged down by 0.11%, settling at $61.88 per barrel, while Brent crude saw a minor drop of 0.14%, trading at $64.86.
FII, DII
After a brief pause, Foreign Institutional Investors (FIIs) returned as net buyers on May 12, snapping their 16-day streak of consistent buying. On Monday, FIIs purchased shares worth Rs 1,246 crore, while Domestic Institutional Investors (DIIs) followed suit with net purchases of Rs 1,448 crore. DIIs made gross purchases of Rs 14,684 crore and sold Rs 13,235 crore, while FIIs bought equities worth Rs 12,775 crore and sold Rs 11,528 crore.
Gold rate today
Gold futures on the Multi Commodity Exchange (MCX) dropped over 4% on Monday, May 12, 2025, as investors began selling off the metal. This fall came after improved market sentiment, driven by the US-China trade deal and a ceasefire between India and Pakistan.
As per Goodreturns, 10 grams of 24-carat gold rate today is Rs 96,870, while 22-carat gold costs Rs 88,790. For those preferring 18-carat gold, the price is Rs 72,650 for the same weight.