Summary of this article
US President Trump slammed India-US trade ties as “a totally one sided disaster.”
PM Modi met Putin and Xi at SCO Summit; markets are monitoring Russia-India-China ties.
US Manufacturing PMI for August to be released later today.
Brent crude rose to $68.45 per barrel; gold gained to Rs 1,05,175 per 10 grams.
US Dollar Index futures inched higher to 97.79
Domestic equities benchmark indices snapped their three-day losing streak to close higher in the previous session. The Sensex climbed 554.84 points, or 0.70 per cent to close at 80,364.49. Likewise, the Nifty 50 jumped 198.20 points, or 0.81 per cent, to settle at 24,625.05.
Among sectors, Nifty Auto led the rally with a 2.80 per cent gain, followed by Nifty Consumer Durables, which climbed 2.08 per cent. IT, Metal, Energy, Oil & Gas, and Realty indices also closed in the green, whereas Pharma and Media ended lower.
For Tuesday’s session, September 2, several global and domestic factors are expected to impact the action on the Dalal Street. Here are the key market cues traders will watch today:
Key Market Cues To Watch Today, September 1
Trade Tensions
US President Donald Trump criticised India’s trade policy in a Truth Social post, calling the economic relationship between the two countries “a totally one sided disaster.”
Trump said that while India sells “massive amounts of goods” to the US, American companies have struggled to access the Indian market because of high tariffs. “India has charged us, until now, such high Tariffs, the most of any country, that our businesses are unable to sell into India,” he wrote. He further continued with his rhetoric that India continues to import most of its oil and defense equipment from Russia, with “very little from the U.S.”
Market participants are likely to track the situation for signals on bilateral trade tensions.
Russia-India-China Bonhomie
On the sidelines of the Shanghai Cooperation Organisation (SCO) Summit 2025 in Tianjin, China, Prime Minister Narendra Modi called Russia a “special and privileged partner” during his talks with President Vladimir Putin, who addressed him as a “dear friend.” Chinese President Xi Jinping, meanwhile, said that “the world’s two most populous countries need to be friends.”
The trilateral meeting comes at a time when US is playing his pressure tactics through tariffs. Market participants will be tracking how this new alliance among Russia, India and China will impact trade flows.
Salesforce layoffs
US tech giant Salesforce has cut about 4,000 jobs from its support division, bringing the headcount down from 9,000 to 5,000. The company said the decision was taken because artificial intelligence is now handling more customer-related work.
Traders will be tracking how this development might impact on global tech sentiment and broader market mood.
US Manufacturing PMI
The Institute for Supply Management (ISM) and S&P Global are scheduled to release the US Manufacturing Purchasing Managers' Index (PMI) for August later today. These numbers are a key gauge of economic activity in the US, and their impact could be felt across international markets, including India.
Crude Oil Price
Crude oil prices extended gains in early session a day after gaining more than a per cent in the previous day. The Brent Crude November futures traded higher by 0.44 per cent at $68.45 per barrel. Meanwhile, the WTI Crude October futures traded up by 0.51 per cent at $64.94 per barrel.
Gold Price Today
Gold prices surged higher in the early session on September 2, extending gains from the previous session, as rising expectations of an interest rate cut by the US Federal Reserve and geopolitical risks in the Middle East supported the bullion. Gold price on Multi Commodity Exchange (MCX) traded higher by 0.37 per cent, at Rs 1,05,175 per 10 grams. On Comex, gold price traded up by 1.34 per cent at $3,563.1 an ounce.
US Dollar Index
US Dollar Index futures, which measures the value of the US Dollar against six major currencies, traded higher by 0.18 per cent at 97.79 in early trade.
US Dollar has been under pressure amid expectations of a US Fed rate cut.
