The GIFT Nifty is setting the tone for another steady session, climbing 100 points in early trade to hover around the 25,189 level. In the previous day’s trading session, the Sensex surged 1,200.18 points to close at 82,530.74, while the Nifty 50 crossed the 25,000 mark, wrapping up at 25,062.10.
Key global and domestic cues to know on May 16, 2025
India-US trade talks
India’s External Affairs Minister S. Jaishankar described the ongoing trade discussions with the United States as “complicated,” emphasising that no final decisions have been made yet. Speaking at the inauguration of Honduras’ new embassy in New Delhi, he highlighted that any trade agreement must be fair and beneficial to both countries before moving forward. His remarks came in response to US President Donald Trump’s earlier claim of a “no tariff” offer from India.
India – Pakistan confidence building measures
In a step towards de-escalation, India and Pakistan have agreed to maintain confidence-building measures aimed at reducing military alertness along their borders. The Indian Army confirmed on Thursday that following a key meeting between the two countries’ Directors General of Military Operations (DGMOs) on May 10, both sides decided to extend these efforts.
This announcement follows weeks of intense conflict sparked by the April 22 terror attack in Pahalgam, which claimed 26 civilian lives. In retaliation, India launched ‘Operation Sindoor’ on May 7, targeting terrorist infrastructure in Pakistan and Pakistan-occupied Kashmir. Pakistan responded with attempted strikes on Indian military bases over the next three days. The situation reached a critical point, with drone and missile strikes threatening to spiral into full-scale war. However, on May 10, both sides agreed to halt all military actions on land, air, and sea from 5 pm, bringing a cautious calm to the border.
Asian markets
As markets continued trading on Friday across the Asia-Pacific region, investors showed caution and mixed reactions after Japan reported its economy shrank slightly in the first quarter. This caused the Nikkei 225, Japan’s main stock index, fall a little by 0.14%. However, the broader Topix index managed to gain 0.12%. In South Korea, the Kospi index rose 0.33%. But the Kosdaq, which focuses more on smaller tech firms, slipped 0.2%. Meanwhile, Australia’s market had a positive day with its S&P/ASX 200 index climbing 0.44%.
US market
The three major US stock indexes ended the day with mixed results. The S&P 500 extended its winning streak to four days, rising 0.41% to close at 5,916.93. The Dow Jones Industrial Average also gained momentum, adding 271.69 points or 0.65%, to finish at 42,322.75. However, the Nasdaq Composite lagged behind, slipping 0.18% to close at 19,112.32.
US dollar
The US Dollar Index (DXY), which measures the dollar’s value against a basket of six foreign currencies, was down 0.24% at 100.63 Friday 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 0.30% to close at 85.53 to the dollar on May 15.
Crude oil
Oil prices saw a slight rise in early Friday trading, with key benchmarks showing mixed movement. West Texas Intermediate (WTI) climbed modestly by 0.13% to reach $61.70 per barrel, while Brent crude experienced a small dip of 0.097%, settling at $64.59.
FII- DII action
On May 15, foreign institutional investors (FIIs) made their biggest single-day purchase in three weeks, buying Indian equities worth Rs 5,393 crore. However, domestic institutional investors (DIIs) took a different stance, selling shares worth Rs 1,668 crore on the same day, according to provisional data from the NSE.
Gold rate today
Gold prices fell sharply, trading about 7% below their recent record high in domestic markets and hitting a five-week low globally as investors booked profits and turned to riskier assets. However, on the international stage, gold managed to recover from early losses and stabilised on Thursday, supported by a softer US dollar and technical buying.
As per Goodreturns, 10 grams of 24-carat gold rate today is Rs 93,920, while 22-carat gold costs Rs 86,090. For those preferring 18-carat gold, the price is Rs 70,440 for the same weight.