On Monday, October 13, equity benchmark indices Sensex and Nifty 50 are expected to open lower, mirroring the weakness in global markets after former U.S. President Donald Trump threatened a "massive increase" in tariffs on Chinese imports—reportedly as high as 100%. However, market sentiment saw a slight shift following a more conciliatory message from Trump, who later suggested he might reconsider the steep tariff hike. In a post, he remarked, “Don’t worry about China, it will all be fine!”, hinting at a potential softening of his stance.
At 7:15 AM, the GIFT Nifty was trading at 25,329, down 72 points.
This week, investors will focus on key triggers, including the US-China tariff war, India inflation data, Q2 results, developments over US shutdown, IPO activity, flow of foreign funds, global macroeconomic data and most importantly the geopolitical developments.
In early trade, Asian markets traded lower on Monday, while the US stock market crashed last week, with the S&P 500 and the Nasdaq suffering their largest single-day percentage drops on Friday since April 10.
HCL Technologies, Anand Rathi Wealth, Just Dial, Indo Thai Securities, and Stallion India Fluorochemicals will announce their Q2 earnings today.
On Friday, October 10, Foreign Institutional Investors (FIIs) were net buyers. FIIs bought equities worth ₹459.20 crore, marking their fourth consecutive day of buying.
Domestic Institutional Investors (DIIs) were buyers on Friday. DIIs bought equities worth ₹1,707.83 crore, marking their 33rd consecutive session of net buying.
On Friday, October 10, Indian equity benchmarks ended higher, extending weekly gains.
The Nifty rose 0.41% to 25,285.35 and the Sensex advanced 0.40% to 82,500.82, marking a second straight week of gains with both indices up 1.57%. Strong FII inflows and earnings optimism supported sentiment.
Sectorally, 9 of 11 indices closed positive, led by Realty, while IT and Metals slipped marginally.
Broader markets outperformed, with Nifty Midcap and Smallcap indices ending on a firm note.
Wall Street witnessed a sharp downturn on Friday after U.S. President Donald Trump escalated trade tensions with China, following Beijing’s move to further restrict rare earth exports.
After the market closed, Trump announced plans to impose an additional 100% tariff on Chinese imports and implement export controls on crucial US-developed software. The announcement triggered heavy selling in major technology stocks and deepened concerns about worsening US-China relations.
All three major U.S. indices ended the session sharply lower and extended their losses in after-hours trading. The S&P 500 and Nasdaq recorded their steepest single-day declines since April 10. Over the week, the S&P 500 suffered its worst performance since May, while the Nasdaq posted its sharpest weekly fall since April.
The Dow Jones Industrial Average dropped 878.82 points (1.90%) to close at 45,479.60, the S&P 500 slid 182.60 points (2.71%) to 6,552.51, and the Nasdaq Composite fell 820.20 points (3.56%) to 22,204.43.
Meanwhile, the US government shutdown has entered its tenth day, with little sign of resolution in Congress. The impasse has paused official economic data releases, creating a temporary blackout of key government statistics.
Gold price climbs to approximately $4,040 during the early Asian session on Monday. Escalating trade tensions between the US and China support the metal’s value. As of 7:12 sm IST, Spot gold is 0.5% higher at $4,038.36/oz. On October 13, Gold futures on MCX surged and closed at ₹121,364 per 10 gm, up by ₹871 or 0.72%.
The US dollar recovered from a selloff in early trade. The dollar index, which measures the greenback’s strength against a basket of six currencies, edged higher to 99.002.
Brent crude oil futures rose more than 1% to $63.6 per barrel and WTI crude oil futures rose more than 1% to $59.7 per barrel on Monday, rebounding from a five-month low reached last Friday.
Disclaimer: The article is for informational purposes only and not investment advice.
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