The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Wednesday following weak global market cues.
Asian markets traded mixed, while the US stock market ended lower overnight, weighed down by selling in financial stocks.
On Tuesday, the Indian stock market ended lower amid profit booking due to persisting concerns over US tariffs, sustained foreign capital outflow, and mixed global cues.
The Sensex dropped 250.48 points, or 0.30%, to close at 83,627.69, while the Nifty 50 settled 57.95 points, or 0.22%, lower at 25,732.30.
“Market action reflects the interplay between earnings-related reactions and global uncertainty. We maintain a cautious view on the Nifty and suggest continuing with a sell-on-rise approach until the index decisively reclaims the 26,000 level,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded mixed, with Japanese indexes hitting record highs. Japan’s Nikkei 225 gained 1.25%, crossing the 54,000 mark for the first time, while the Topix rose 0.6%. South Korea’s Kospi rose 0.44%, while the Kosdaq fell 0.37%. Hong Kong’s Hang Seng index futures indicated a higher opening.
Gift Nifty Today
Gift Nifty was trading around 25,757 level, a discount of nearly 34 points from the Nifty futures’ previous close, indicating a weak start for the Indian stock market indices.
Wall Street
US stock market ended lower on Tuesday, led by a drop in financial shares.
The Dow Jones Industrial Average declined 398.21 points, or 0.80%, to 49,191.99, while the S&P 500 fell 13.53 points, or 0.19%, to 6,963.74. The Nasdaq Composite ended 24.03 points, or 0.10%, lower at 23,709.87.
Visa shares dropped 4.5%, Mastercard stock price declined 3.8% and JPMorgan share price fell 4.2%. Delta Air Lines shares eased 2.4%, AMD stock price jumped 6.39%, Intel shares spiked 7.33%, and NVidia share price rose 0.47%.
US Inflation
US consumer prices increased in December, lifted by higher costs for rents and food. The Consumer Price Index rose 0.3% last month. In the 12 months through December, the CPI advanced 2.7%, matching November’s gain.
US-Iran Conflict
US President Donald Trump announced that he has canceled all meetings with Iranian officials in response to the ongoing crackdown on protests in the country.
In a post on Truth Social, he addressed Iranian citizens directly: “Iranian Patriots, KEEP PROTESTING – TAKE OVER YOUR INSTITUTIONS!!! Save the names of the killers and abusers. They will pay a big price. I have cancelled all meetings with Iranian Officials until the senseless killing of protesters STOPS. HELP IS ON ITS WAY.”
India-US Trade Talks
External Affairs Minister S Jaishankar held a phone conversation with US Secretary of State Marco Rubio focusing on cooperation in areas of trade, critical minerals, nuclear energy and defence. The minister said he had a “good conversation” with Rubio and that they agreed to remain in touch.
World Bank on India GDP Growth
India’s economy is expected to grow 6.5% in FY27, easing from an estimated 7.2% in the current fiscal, the World Bank said in its latest Global Economic Prospects report.
Dollar
The US dollar recovered ground to near a one-month high after US CPI data. The US dollar index, which measures the greenback’s strength against a basket of six currencies, was last up 0.3% at 99.18, Reuters reported. Against the yen, the US dollar was last flat at 159.025 yen. Against the Chinese yuan trading offshore in Hong Kong, the US dollar was last flat at 6.9708. yuan. The euro was last flat at $1.1642, while the British pound also held steady at $1.3423.
Gold Prices
Gold prices were steady near a record high as weaker-than expected US inflation data supported the case for more interest rate cuts by the US Federal Reserve, while geopolitical tensions remained elevated. Spot gold price rose 0.2% to $4,595.53 an ounce, while silver price was up 0.9% at $87.716.
Crude Oil Prices
Oil steadied after notching its biggest four-day gain in more than six months. Brent crude oil gained 2.51% to $65.47 a barrel, while the US West Texas Intermediate (WTI) crude futures fell 0.10% to $61.09.
(With inputs from Reuters)
