Sensex and Nifty 50 are likely to open higher on Wednesday as upbeat overnight global cues lift investor sentiment. Asian markets rallied, and US equities closed higher overnight, driven by tech stock gains. 

However, on Tuesday, the Indian stock market fell sharply, weighed down by concerns over high valuations and continued foreign capital outflows.

Domestic Market Recap

On Tuesday, Indian indices closed in the red:

• Sensex slumped by 636.24 points (-0.78%) to close at 80,737.51
• Nifty 50 moved down by 174.10 points (-0.70%) to settle at 24,542.50

Gift Nifty

Gift Nifty was trading near 24,730, around 55 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Wall Street Performance

Technology stock gains and optimism surrounding trade talks with US partners lifted the US stock market to a higher close on Tuesday.

• Dow Jones Industrial Average gained by 514.16 (0.51%) points to close at 42,519.64.
• S&P 500 up by 34.43 points (0.58%), ending at 5,970.37.
• The Nasdaq Composite was higher by 156.34 points (0.81%), finishing at 19,398.96.

Crude Oil Prices

• Brent crude slumped by 0.17% to $65.52/barrel
• US West Texas Intermediate (WTI) crude: -0.20% to $63.28/barrel

Overnight Major Global Events Driving Sentiment

1. US Job Openings: US employers posted more job openings in April, with vacancies rising by 191,000 to 7.391 million, according to the JOLTS report. The March figure was revised upward to 7.200 million from 7.192 million. Despite the rise in openings, layoffs also increased. Reuters-polled economists had expected 7.10 million job vacancies.
2. Japan Services PMI: Japan’s services sector expanded at a slower pace in May as demand weakened. The final au Jibun Bank Services PMI dropped to 51.0 from 52.4 in April, though it remained above the flash estimate of 50.8.
3. US Factory Orders: US factory orders declined sharply in April, falling 3.7% after a 3.4% increase in March. Reuters had projected a 3.1% drop. On an annual basis, factory orders still climbed 2.0% in April.

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