Sensex and Nifty 50 may open flat on Tuesday as global cues remain mixed. Asian markets traded on a mixed note, while US markets closed higher overnight, with the S&P 500 and Nasdaq setting new record highs. 

However, on Monday, investors booked profits after a strong rally, pulling the Indian stock market lower and snapping its four-day winning streak. Still, the market wrapped up the month in positive territory for the fourth straight time.

Domestic Market Recap

Moreover, for the month of June, Sensex rallied 2.65% and Nifty50 surged by 3.10%, while on Monday, Indian indices closed in the red:

• Sensex slumped by 452.44 points (0.54%) to close at 83,606.46
• Nifty 50 moved down by 120.75 points (0.47%) to settle at 25,517.05

Gift Nifty

Gift Nifty was trading near 25,635, around 20 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Wall Street Performance

The US stock market closed higher on Monday, with both the S&P 500 and Nasdaq logging record closing highs. The indices posted their strongest quarterly performance in over a year, driven by optimism around potential trade deals and expectations of interest rate cuts.

• Dow Jones Industrial Average surged by 275.50 points (0.63%) to close at 44,094.77.
• S&P 500 up by 31.88 points (0.52%), ending at 6,204.95.
• The Nasdaq Composite was trading higher by 96.28 points (0.48%), finishing at 20,369.73.

Crude Oil Prices

Crude oil prices declined as markets weighed the likelihood of an OPEC production increase in August and growing fears of an economic slowdown due to potential hikes in US tariffs.

• Brent crude slumped by 0.24% to $67.61/barrel
• US West Texas Intermediate (WTI) crude: -0.38% to $64.86/barrel

Gold Prices

• Spot gold was trading up by 0.3% at $3,312.25/oz 
• US gold futures gained by 0.5% at $3,323.10

Overnight Major Global Events Driving Sentiment

1. US-India Trade Deal: White House Press Secretary Karoline Leavitt said that the United States and India are nearing the final stages of a trade agreement, affirming President Donald Trump’s earlier remarks. “They are in the process of finalising these agreements, and President Trump along with his trade team will make an announcement very soon,” Leavitt noted.
2. Fiscal Deficit: India recorded a fiscal deficit of Rs 13,163 crore in the April–May period of FY26, which accounts for 0.8% of the full-year target for 2025–26. In comparison, the fiscal deficit stood at Rs 50,615 crore during the same period last year.
3. IIP Data: India’s industrial production, as reflected in the Index of Industrial Production (IIP), increased by just 1.2% in May, its slowest growth in nine months. This growth lags behind the 6.3% expansion seen in May of the previous year. The ministry also revised April’s growth rate to 2.6%, which remained higher than May’s performance.
4. Japan Manufacturing PMI: Japan’s manufacturing activity expanded in June for the first time in over a year, as the final au Jibun Bank Japan Manufacturing Purchasing Managers’ Index (PMI) climbed to 50.1 from 49.4 in May.

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