Weak global signals, a decline in GIFT Nifty, and underwhelming IT sector results may lead to a subdued opening for the Indian stock market today.
Share Market Today: A sluggish start is anticipated for the share market on Monday, April 21, 2025, as GIFT Nifty futures were trading at 23,808, down 44 points. This indicates a likely mild decline in the domestic market at the opening. Asian markets showed a mixed trend—Japan's Nikkei 225 fell by approximately 0.74%, while South Korea's Kospi index rose by 0.5%. Australian and Hong Kong markets remained closed due to the Easter Holiday.
Trade War Concerns and Pressure from the US Market
Growing concerns regarding a potential trade war between the US and China could impact global markets, including the Indian share market. Activity in the US futures market was subdued today. Futures linked to the Dow Jones, Nasdaq-100, and S&P 500 were trading approximately 0.5% lower. Furthermore, President Trump's statements regarding Federal Reserve Chairman Jerome Powell have added to investor anxieties. Trump stated that Powell's dismissal "may not happen so quickly," further increasing uncertainty.
Selling Pressure Anticipated in the IT Sector
Indian IT companies such as TCS, Infosys, and Wipro have reported mixed performance in the first quarter of FY25. The March quarter results have somewhat disappointed investors, as both revenue growth and outlook appeared cautious. These companies showed a slight increase in hiring—TCS, Infosys, and Wipro added a total of 1,438 new employees between Q3 and Q4 FY25, compared to fewer than 900 in the previous quarter. Nevertheless, uncertain global business conditions and cost-cutting measures may put pressure on IT stocks.
Historic Surge in Gold Prices
Global demand for gold has seen a significant surge. The gold spot price reached a new record high of $3,368.92 per ounce. This figure surpasses the psychological level of $3,300, shifting investor sentiment towards safe haven assets. The decision by China's Central Bank to keep loan prime rates unchanged also contributed to this trend.
Market Strength Shown Last Week
Last week, on Thursday, Indian markets witnessed a significant rally. Both Nifty and Sensex closed with gains of approximately 2%. Private banking stocks led this rally, as a decline in deposit rates improved margin expectations. Foreign portfolio investor (FPI) buying also supported the market.
