Indian Markets Set for Flat Opening as Global Tensions Drive Gold to Record Highs
Indian markets are set for a flat opening with Gift Nifty at 25,809.50, down 0.1%. Domestic indices fell for the fifth straight session Friday amid US tariff concerns and foreign outflows. Asian markets showed gains with Australia's ASX up 0.71% and South Korea's Kospi rising 0.83%. Gold hit record highs near $4,600 per ounce due to US-Iran tensions and Fed probe, while oil remained steady despite geopolitical risks.
*this image is generated using AI for illustrative purposes only.
Indian stock markets are positioned for a cautious start on Monday, with early indicators suggesting a flat-to-neutral opening amid mixed global cues. Gift Nifty trading at 25,809.50 reflects a modest decline of 7.50 points or 0.1% from the previous close, signaling subdued investor sentiment as markets navigate ongoing uncertainties.
Market Performance and Outlook
Domestic indices extended their losing streak on Friday, marking the fifth consecutive session of declines. The benchmark indices faced significant pressure from multiple headwinds, including renewed concerns about US tariffs and persistent foreign capital outflows.
| Index | Friday Close | Change (Points) | Change (%) |
|---|---|---|---|
| Sensex | 83,576.24 | -605 | -0.72% |
| Nifty 50 | 25,683.30 | -194 | -0.75% |
| BSE Midcap | - | - | -0.90% |
| BSE Smallcap | - | - | -1.74% |
Ponmudi R, CEO of Enrich Money, noted that while early global cues are mildly supportive, Indian markets may continue trading cautiously due to ongoing trade and tariff-related uncertainties weighing on sentiment.
Asian Markets Show Resilience
Asian markets demonstrated positive momentum on Monday morning, providing some support for regional sentiment. The gains followed strength on Wall Street after a US jobs report showed weaker-than-expected job creation in December, despite a decline in unemployment rates.
| Market | Performance |
|---|---|
| Australia S&P/ASX 200 | +0.71% |
| South Korea Kospi | +0.83% |
| South Korea Kosdaq | +0.40% |
| Hong Kong Hang Seng (Futures) | 26,408 vs 26,231.79 close |
Japanese markets remained closed due to a holiday, while Hong Kong's Hang Seng Index futures indicated a higher opening.
Geopolitical Tensions Drive Commodity Markets
Escalating tensions between the US and Iran have significantly impacted global commodity markets, particularly precious metals. Gold surged to an all-time high near $4,600 per ounce, driven by geopolitical uncertainties and a criminal probe into Federal Reserve Chair Jerome Powell.
| Commodity | Current Price | Change (%) |
|---|---|---|
| Gold | $4,585.39/ounce | +1.7% |
| Silver | - | +4.6% |
| Brent Crude | $63.29/barrel | -$0.05 |
| WTI Crude | $59.06/barrel | -$0.06 |
President Trump has been considering various measures against Iran following its crackdown on protesters, which human rights organizations claim has resulted in more than 500 deaths. Iran responded by warning that US and Israeli military bases in the region could be viewed as "legitimate targets" should any military action be taken.
Currency and Wall Street Performance
The US dollar retreated from a one-month high, with the dollar index declining 0.3% to 98.899, breaking a five-session winning streak. This decline followed the launch of a criminal probe into Federal Reserve Chair Jerome Powell, heightening friction with the Trump administration.
Wall Street closed at record levels on Friday, with the S&P 500 rising 0.65% to 6,966.28, the Nasdaq Composite advancing 0.81% to 23,671.35, and the Dow Jones Industrial Average climbing 237.96 points or 0.48% to 49,504.07.
Investors are closely monitoring key Q3FY26 IT earnings scheduled for release on Monday, while maintaining a cautious stance amid persistent uncertainty over US-India tariff discussions and escalating geopolitical tensions. The combination of domestic challenges and global uncertainties continues to weigh on market sentiment as traders navigate this complex environment.
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