Stock market today: Key things to know before the opening bell on May 05

GIFT NIFTY futures indicate a positive opening for Indian markets on Monday. Indian benchmark indices continued their winning streak for the third consecutive week. The rally was driven by multiple positive tailwinds, such as strong earnings by heavyweights, softening in the tariff tensions, strong GST collections, and sustained FII buying for 12 consecutive days. Apart from that, the external headwinds also cooled off after China and the US hinted at talks over trade and tariffs.

Asian markets

The Asian markets opened higher on Monday morning across the board as Japan’s Nikkei, Hong Kong’s Hang Seng index rallied over 1.2% on Monday. The rally was largely driven by the gains in the US markets. The US markets also closed higher on Friday as the crucial jobs data came in better than expected, indicating some strength in the US economy.

Crude oil price

The crude oil prices fell nearly 8% in the previous week after OPEC+ indicated higher output from June. The group will increase the output by 411,000 bpd. These supply concerns overshadowed earlier news about China weighing talks with the U.S. that could ease trade tensions between the two economic giants. The WTI crude oil prices traded 3.8% lower at $56 per barrel, and Brent crude oil prices fell below the $60 per barrel mark for the first time in 2021.

FII and DII Data

The foreign institutional investors continued their bullish momentum in the Indian markets as they bought Indian equities for 12 consecutive days. Moreover, the FII hold 8.4k contracts on the short side, indicating their light position in the derivatives market. The FIIs have bought equities worth ₹2,769 crore on Friday and DII too supported with ₹3,290 crore worth of buying.

Key triggers this week

On the economy front, market-participants would be eyeing the data of HSBC Composite PMI Final, HSBC Services PMI Final, which scheduled to be released on May 06, Bank Loan Growth, Deposit Growth, Foreign Exchange Reserves data going to be out on May 09.

On the global front, investors would be eyeing few economic data from S&P Global Composite PMI Final, S&P Global Services PMI on May 05 followed by Balance of Trade, Redbook YoY on May 06, Fed Interest Rate Decision on May 07, Fed Press Conference, Initial Jobless Claims on May 8, Fed Balance Sheet, Baker Hughes Oil Rig Count on May 09.