GIFT Nifty:

GIFT Nifty May 2025 futures were trading 24 points lower in early trade, suggesting a weak opening for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) bought shares worth 1,246.48 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,448.37 crore in the Indian equity market on 12 May 2025, provisional data showed.

According to NSDL data, FPIs have bought shares worth Rs 13229.71 crore in the secondary market during May 2025 (so far). This follows their purchase of shares worth Rs 3243.03 crore in April 2024.

Global Markets:

Most Asian stocks rose on Tuesday, following a massive rally on Wall Street after the U.S. and China agreed to a trade deal.

In the U.S., major indices posted significant gains. The Dow Jones Industrial Average rose 2.81%, the S&P 500 advanced 3.26%, and the Nasdaq Composite gained 4.35%, with technology stocks — particularly those with exposure to China, such as Apple and Tesla — leading the way.

The surge in investor confidence followed a joint announcement on Monday that the U.S. and China had agreed to mutually reduce tariffs on each other’s goods for an initial 90-day period. Under the agreement, the U.S. will reduce its tariffs on Chinese imports from 145% to 30%, while China will lower its retaliatory tariffs from 125% to 10%. China also committed to easing certain non-tariff measures, including restrictions on rare earth exports.

The agreement was the result of intensive negotiations held over the weekend in Geneva, where both sides reported "substantial progress." A joint statement emphasized the importance of developing "a sustainable, long-term, and mutually beneficial economic and trade relationship."

This development marks a significant de-escalation in the prolonged trade conflict that began with the imposition of sweeping tariffs by the United States. The trade tensions had previously disrupted global supply chains, heightened market volatility, and raised concerns over a potential global recession.

However, despite the positive momentum, investor focus is now shifting toward upcoming U.S. inflation data, with the Consumer Price Index (CPI) report due later Tuesday.

Domestic Market:

The key equity indices bounced back with strong gains Monday, breaking a two-day losing streak. Investor sentiment was lifted as geopolitical tensions eased following a ceasefire agreement between India and Pakistan, bringing an end to days of missile and drone attacks. Additionally, optimism surrounding the progress of the US-China trade deal further fueled market momentum. The S&P BSE Sensex soared 2,975.43 points or 3.74% to 82,429.90. The Nifty 50 index galloped 916.70 points or 3.82% to 24,924.70.