Stock Market Cues: US-Venezuela Tensions, PMI Data, Crude Oil, Gold And Silver Prices Today

Stock Market Cues: In the previous session, both the Sensex and Nifty 50 started on a positive note and traded higher for most part of the session, however, in the second half saw a brief bout of selling followed by a quick fag-end recovery.

At close on January 3, Sensex was up 573.41 points, or 0.67 per cent, at 85,762.01, and Nifty 50 was up 182 points, or 0.70 per cent, at 26,328.55.

The broader market indices mirrored the trend in benchmarks and closed high up in the green. The Nifty Next 50 and Nifty Midcap 100 closed more than a per cent higher, while the Nifty Smallcap 100 surged 0.72 per cent up. Barring FMCG, all other sectoral indices ended in the positive territory.

Stock Market Cues To Watch On January 5

Following are the key market cues that are likely to influence trade today:

US-Venezuela Tensions

Global risk sentiment turned cautious after geopolitical tensions escalated sharply in Latin America. The US military carried out a series of strikes on Venezuela’s capital Caracas early January 3, triggering multiple explosions across the city. At least 40 people, including civilians and military personnel, were killed in the strikes, a New York Times report said. Venezuelan President Nicolás Maduro declared a state of emergency, calling the attack an “extremely serious military aggression” by the US against the capital.

Later on January 3, US President Donald Trump announced that Maduro had been captured in what he described as a large-scale military operation.

Maduro’s capture followed months of aggression by the US, including deadly strikes on alleged drug-smuggling vessels, the seizure of two tankers carrying Venezuelan oil, and a sustained US military build-up off Venezuela’s coast. This adds another layer of uncertainty to global cues, particularly for crude oil prices and overall risk appetite.

US PMI Data

The Institute for Supply Management (ISM) is scheduled to announce the US manufacturing PMI for December 2025 and the services PMI on January 5. Market participants will be tracking this data because these figures could shape expectations on the growth of the world’s largest economy and the Federal Reserve’s interest rate outlook.

China PMI Data

China’s services activity slowed to a six-month low in December, raising concerns over demand in the world’s second-largest economy. The RatingDog China General Services PMI, compiled by S&P Global, slipped to 52.00 from 52.10 in November, though it remained in expansion territory.

New business growth weakened, while export orders fell back into contraction due to lower tourist numbers. However, business confidence improved, with firms turning more optimistic on market conditions and expansion plans for 2026.

Crude Oil Prices

Crude oil prices fell around 0.50 per cent over the weekend after US attacked Venezuela.

As of the time of writing, Brent crude oil futures traded at $60.57 per barrel, down 0.30 per cent, while the WTI crude oil futures was down by 0.40 per cent at $57.09 per barrel.

Oil prices remained stable despite geopolitical instability in Venezuela, one of the largest oil suppliers.

US Stock Market

On January 2, the main indices on Wall Street closed higher, led by shares of chip manufacturing companies such as Nvidia and Intel. On the other hand, several index heavyweights like Apple and Microsoft registered losses, keeping the gains in indices in check.

At close, the Dow Jones was up 0.66 per cent, the S&P 500 was up by 0.19 per cent and the tech-heavy Nasdaq, however, closed flat with a slight negative bias.

Asian Stock Markets

Asian equities surged sharply higher in early trade on January 5.

Japan's Nikkei 225 and South Korea's Kospi rallied nearly 3 per cent to hit their new all-time highs, led by a rally in technology and semiconductor stocks.

China's CSI 300 also jumped around 1.60 per cent, while on the other hand, the Hong Kong-based Hang Seng traded lower by 0.80 per cent.

Rupee vs Dollar

The rupee weakened against the US dollar in early trade on January 5, tracking persistent dollar strength and cautious risk sentiment. The USD/INR pair was trading at 90.162, up 0.19 per cent, as against the previous close of 89.994.

The domestic currency opened lower at 90.125 and moved in a range of 89.988 to 90.255 during the session so far.

Meanwhile, the US dollar index, which measures the greenback against a group of world's six major currencies, traded higher by 0.33 per cent at 98.48. This is the eighth consecutive session of gains for the index.

Gold And Silver Rate Today

Gold and silver prices edged higher in early trade on January 5 amid heightened US-Venezuela tensions.

On the Multi Commodity Exchange (MCX), February gold futures traded higher by more than 1 per cent at Rs 1,37,303 per 10 grams, and March Silver futures quoted nearly 3 per cent up at Rs 2,43,023 per kilogram.