Stocks across global markets surged as the US Senate prepared to vote on a final measure to end the 41-day-long federal government shutdown. The move has boosted investor confidence worldwide, with Wall Street, Asian indices, European markets, and India’s GIFT Nifty all trading on a positive trajectory. Adding further momentum to Indian equities, US financial and investment giant Goldman Sachs has issued a bullish “overweight” rating on Indian markets. The firm’s outlook suggests significant upside potential and predicts that the Nifty50 index could cross the 29,000 mark by the end of 2026. The highly optimistic call is expected to lift domestic investor sentiment and attract greater foreign inflows over the medium term.
Meanwhile, global gold prices soared sharply in early trade. The international price jumped by $137 per ounce to $4,138.41, driven by expectations that the US Federal Reserve may cut interest rates in its December monetary policy meeting. With the weakened dollar and dovish expectations from the Fed, gold prices in India are also expected to rise sharply today.
Tech bounce powers US markets; Global stocks follow with strong gains
In US, the S&P 500 climbed 1.54 per cent, the Dow Jones Industrial Average advanced 0.81 per cent, and the Nasdaq jumped 2.27 per cent as Wall Street closed with strong gains, reversing recent volatility and sell-offs, particularly in technology and artificial intelligence-linked stocks. In futures trading, all three benchmark indices gained up to 0.1 per cent, reflecting continuing positive sentiment. The standout performers were major AI and technology companies, which staged an impressive rebound after recent corrections. Shares of Nvidia, Broadcom, Microsoft, and other tech majors gained sharply, helping lift the Nasdaq and pushing Wall Street back into a strong upward zone. Asian markets responded positively to the recovery in the US. Japan’s Nikkei gained 0.91 per cent, South Korea’s KOSPI surged 1.94 per cent, Australia’s ASX200 inched up 0.25 per cent, and Hong Kong’s Hang Seng rose 0.4 per cent. China was the only major market not to reflect the optimism. The Shanghai Composite Index remained unchanged despite global cues. In Europe, markets opened sharply higher. Britain’s FTSE climbed 1.08 per cent while Germany’s DAX rallied 1.65 per cent, signalling rising risk appetite and renewed confidence in global economic stability.
In India, domestic equities are also expected to benefit from the global rally. The GIFT Nifty, which indicates market direction ahead of domestic trading, rose 40 points this morning, suggesting a positive start for Sensex and Nifty. On Monday, Indian markets closed on a strong note with support from global recovery and renewed buying in IT counters. The Sensex rose by 319 points (+0.38 per cent) to settle at 85,535, while the Nifty50 climbed 82 points (+0.32 per cent) to 25,574.
Ambassador Gore takes charge in New Delhi; Democrats split on shutdown bill in Washington
Market sentiment received another boost after Sergio Gore officially assumed office as the new US Ambassador to India. At the swearing-in ceremony, President Donald Trump described India as a “strategic partner” and praised his “fantastic” friendship with Prime Minister Narendra Modi. Trump also reiterated that an India-US trade agreement could soon become a reality and even remarked that Gore has already become a friend of Modi. These diplomatic signals have further strengthened investor expectations regarding bilateral trade cooperation, defence partnerships, and technology investment. Although the Senate moved closer to approving the bill to end the shutdown, political friction within the US Democratic Party intensified. Eight Democratic lawmakers broke ranks and voted alongside Republicans to pass the bill. Senior Democratic leaders Chuck Schumer and Hakeem Jeffries remained strongly opposed, drawing criticism from fellow Democratic senators including Rohan Khanna, Chris Murphy, and Seth Moulton, who demanded Schumer’s removal for “failed leadership.”
In India, Corporate earnings also influenced market movement. Vodafone Idea reported its Q2 results, with losses narrowing to Rs 5,524.2 crore from Rs 7,175.9 crore, driven by better average revenue per user (ARPU). Bajaj Finance posted 23 per cent profit growth while net interest income rose 22 per cent. However, gross non-performing assets increased from 1.06 per cent to 1.24 per cent, raising concerns. Several major companies including Bajaj Finserv, Tata Power, Biocon, Bosch, Bharat Forge, Container Corporation, ISAF Bank, Godrej Industries, Rail Vikas Nigam, and Torrent Power will release their financial results today.
With global markets on a strong upward path, a bullish call from Goldman Sachs, optimism over the US shutdown ending, and expectations of a Fed rate cut, the rally in equities is expected to benefit India throughout the day.
