Stock Market News: Key Events That Could Define D-Street's Direction Today

Stock Market News: Investors are likely to react to a blend of global and domestic factors in Monday's trade, June 30. Market participants will be keeping a close eye on developments surrounding the US trade talks, upcoming industrial activity data for May, which could offer fresh insights into the economy’s performance, and other cues.

Earlier on Friday, June 27, the Sensex had closed 303.03 points, or 0.36 per cent, higher at 84,058.90, while the Nifty 50 ended 88.80 points, or 0.35 per cent, up at 25,637.80.

Over the past week, markets were buoyed by a de-escalation in the Iran-Israel conflict, a rebound in foreign inflows, and a softening of crude oil prices. These factors helped improve sentiment, providing some relief to investors.

US Trade Talks

The US is currently engaged in talks with around 18 trading partners, including India, Japan, several European nations, and Southeast Asian countries, as they look to avoid the sharp trade tariffs imposed by President Donald Trump in April. While these tariffs were temporarily suspended for 90 days, the grace period is set to end on July 8. However, US officials have hinted this week that the deadline might get extended, giving more time for talks to continue.

Fed Rate Cut Hopes

Trump over the weekend said he plans to announce a successor to Federal Reserve Chairman Jerome Powell as soon as this summer, even though Powell’s term runs until May 2026. Trump has been increasingly frustrated with Powell, particularly over the Fed chair’s decision not to cut interest rates despite inflation staying relatively low. If Powell is replaced with a shadow Fed Chair, that could mean rate cuts happening soon.

India IIP Data

The Ministry of Statistics and Programme Implementation (MOSPI) is set to release the Index of Industrial Production (IIP) data for May 2025 today. In April, the IIP growth was recorded at 2.70 per cent, a slight decline from the 3 per cent registered in March, as per official figures. Market participants will be closely monitoring the May data for any indications of momentum in industrial activity.

How Global Markets Are Performing

Japan's Nikkei 225 surged over 1.64 per cent to hit its 11-month high, as investors cheered progressive trade talks with the US. The broader Topix too climbed 0.96 per cent in early trade on June 30.

South Korea's KOSPI rose over 0.7 per cent, while China's SSE Composite gained over 0.2 per cent. On the other hand, Hong Kong-based Hang Seng was down 0.53 per cent.

Earlier on Friday, June 27, the US market closed higher, with the S&P 500 and Nasdaq reaching all-time closing highs, as investors reacted to growing hopes for a trade deal.

The Dow Jones Industrial Average climbed 432.43 points, or 1.00 per cent, to close at 43,819.27. The S&P 500 added 32.05 points, or 0.52 per cent, finishing at 6,173.07, while the Nasdaq Composite gained 105.55 points, or 0.52 per cent, closing at 20,273.46.