Key Market Cues Likely To Drive Action On D-Street Today

Domestic benchmark indices logged gains for the fourth straight day in the previous session on August 19, 2025, buoyed by multiple domestic and global cues. The Sensex closed higher by 370.64 points, or 0.46 per cent, at 81,644.39. Likewise, the Nifty 50 surged 103.70 points, or 0.42 per cent, to close at 24,980.65.

The previous session’s buying was broad-based, as most broader market indices also extended gains. Oil & Gas was the top sectoral gainer as crude prices fell over 1 per cent on easing Russia-Ukraine tensions. Auto sector also saw heavy buying in anticipation of GST rate rationalisation. However, Pharma ended as the top laggard.

Key Market Cues Today

Let us take a quick look at the key market cues that are likely to affect India’s stock market today.

US Markets

Overnight, in the US, the key indices ended mostly lower, weighed down by the sell-off in big tech stocks. The negative sentiment came after news that chipmakers Nvidia and AMD have agreed to give 15 per cent of their China-related chip sales revenue to the US government. Adding to investor concerns were reports that the US might take a 10 per cent stake in Intel. These developments have raised fresh concerns over the US President Donald Trump administration's increasing involvement in the tech sector.

The tech-heavy Nasdaq Composite ended lower by 1.46 per cent, the S&P 500 closed 0.59 per cent lower, while the Dow Jones managed to end slightly above in the green, up 0.02 per cent.

Asian Markets

Asian markets traded lower in early hours today, tracking the sell-off in tech stocks on Wall Street overnight.

Japan's Nikkei 225 traded lower by more than 1.5 per cent, South Korea's KOSPI was down by nearly 2 per cent, and the Hong Kong-based Hang Seng quoted lower by over 0.6 per cent.

Meanwhile, China kept its benchmark lending rates unchanged for the third month in a row. The one-year loan prime rate (LPR) was held steady at 3.0 per cent, while the five-year LPR, a key reference for mortgages, remained at 3.5 per cent. The country’s SSE Composite traded in the red, though marginally lower, as investors digested the monetary policy decision.

GST Rate Rationalisation

Finance Minister Nirmala Sitharaman is set to attend an important meeting of a state-level ministerial panel on August 20 to present the Centre’s proposal for major GST reforms, according to a PTI report.

The two-day meeting of the Group of Ministers (GoM) on GST rate rationalisation will be held on August 20-21, sources told PTI. The proposal aims to reduce the existing tax slabs to two, 5 per cent and 18 per cent, and introduce a higher 40 per cent rate for specific goods.

Market participants will be tracking the outcome of this meeting for further cues on GST rate rationalisation.

Jackson Hole Symposium

The Kansas City Federal Reserve in the US will hold the Jackson Hole economic symposium from August 21 to 23, where Fed Chair Jerome Powell and central bankers, economists and academicians will gather together to discuss key issues impacting the global economy. Powell is expected to speak on the health of US economy after Trump's tariffs and interest rates.

Market participants will be looking for hints on whether the Fed will keep interest rates high or start cutting them in the near future, as that might decide the future fund flows into India.

India-China Relations

India and China are moving towards improving bilateral relations in the face of Trump’s punitive tariffs. The neighbouring country’s Foreign Minister Wang Yi was here in India for a two-day visit. Yi met with External Affairs Minister S Jaishankar, National Security Advisor Ajit Doval and Prime Minister Narendra Modi. During his India visit, Yi said, “History and reality prove that a healthy relationship between India and China serves the long-term interests of both countries.”

"Stable, predictable, constructive ties between India and China will contribute significantly to regional as well as global peace and prosperity," Modi said after meeting with Yi.

This comes ahead of the Shanghai Cooperation Organisation (SCO) Summit in Tianjin on August 31–September 1.

Gold Price Today

Gold price on the Multi Commodity Exchange (MCX) continued to stay below the Rs 1 lakh mark and declined to their lowest in nearly three weeks. In early session, the Gold October futures quoted lower by Rs 69, or 0.07 per cent at Rs 98,627 per 10 grams.

The fall in demand of the safe haven metal is being attributed to strengthening US dollar. The US dollar index rose to its highest level in over a week, making gold more expensive for buyers using other currencies.

Crude Oil Price Today

Crude oil prices bounced back in early session today after declining more than a per cent in the previous session.

Brent crude futures traded higher by 0.3 per cent above $66 per barrel. Likewise, WTI Crude futures, too, recovered over 0.4 per cent to $62 per barrel.