Indian benchmark indices, Sensex and Nifty 50, are likely to start Wednesday on a subdued note as investors closely monitor overnight developments in the Israel-Iran conflict amid mixed global cues.

Asian markets declined, while US stocks edged lower overnight as traders awaited the Federal Reserve’s interest rate decision expected later in the day.

However, on Tuesday, the Indian stock market closed in the red, dragged down by profit-booking in heavyweight stocks like HDFC Bank, Reliance Industries, and Bajaj Finance, coupled with weak global signals.

Domestic Market Recap

On Tuesday, Indian indices closed in the red:

• Sensex slumped by 213 points (-0.26%) to close at 81,583.30
• Nifty 50 moved down by 93 points (0.37%) to settle at 24,853.40

Gift Nifty

Gift Nifty was trading near 24,834, around 29 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Wall Street Performance

US stock futures slipped slightly as investors stayed cautious ahead of the Federal Reserve’s interest rate decision, scheduled for Wednesday afternoon in the US. 

• Dow Jones Industrial Average slumped by 299.29 points (0.70%) points to close at 42,215.80.
• S&P 500 down by 50.39 points (0.84%), ending at 5,982.72.
• The Nasdaq Composite was trading lower by 180.12 points (0.91%), finishing at 19,521.09.

Crude Oil Prices

• Brent crude gained by 0.25% to $76.64/barrel
• US West Texas Intermediate (WTI) crude: 0.31% to $75.07/barrel

Gold Prices

• Spot gold gained by 0.2% to $3,390.59/oz 
• US gold futures down by 0.3% to $3,406.90

Overnight Major Global Events Driving Sentiment

1. Israel-Iran War Update: The conflict between Israel and Iran intensified overnight, leading the United States to bolster its military presence in the region. In reaction to the heightened tensions, US President Donald Trump held a meeting with his national security team, though no specifics of a response strategy were made public. The escalation has raised serious diplomatic concerns as the US seeks to navigate a delicate balance between demonstrating deterrence and avoiding a broader regional conflict.