The benchmark indices Sensex and Nifty 50 are set to open lower on Wednesday as weakness in overnight global markets weighs on sentiment. Asian markets declined, while US stocks closed mostly lower due to heavy selling in technology shares. 

However, on Tuesday, Indian equities extended their rally, with the benchmark indices posting gains for the fourth straight session.

Domestic Market Recap

On Tuesday, Indian indices closed in the green:

• Sensex surged by 370.64 points (0.46%) to close at 81,644.39
• Nifty 50 moved up by 103.70 points (0.42%) to settle at 24,980.65

Gift Nifty

Gift Nifty was trading near 24,963, around 70 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Wall Street Performance

• The Dow Jones Industrial Average gained by 10.45 points to close at 44,922.27.
• S&P 500 down by 37.78 points (0.59%), ending at 6,411.37.
• The Nasdaq Composite was trading lower by 314.82 points (1.46%), finishing at 21,314.95.

Crude Oil Prices

• Brent crude gained by 0.49% to $66.11/barrel
• US West Texas Intermediate (WTI) crude was trading 0.59% higher at $62.72/barrel

Gold Prices1

• Spot gold was trading down by 0.1% at $3,312.79/oz 
• US gold futures were trading 0.1% lower at $3,355.20

Overnight Major Global Events Driving Sentiment

1. India-China Ties: India and China agreed to restart direct flights and strengthen trade and investment ties. Both nations will reopen border trade at three designated points, boost investment flows, and facilitate visas.
2. China Loan Prime Rate: China kept its benchmark lending rates steady in August for the third straight month. The one-year Loan Prime Rate (LPR) stayed at 3.0%, while the five-year LPR remained unchanged at 3.5%.
3. Japan Trade Deficit: Japan’s exports fell for the third month in a row, dropping 2.6% YoY in July, worse than the market’s forecast of a 2.1% decline and following June’s 0.5% dip. Imports slid 7.5% from a year earlier, a smaller fall than the expected 10.4%. As a result, Japan recorded a trade deficit of 117.5 billion yen ($795.4 million) in July, against expectations of a 196.2 billion yen surplus.
4. Intel Shares: Intel’s stock price surged 6.97% to $25.31 after Japan’s SoftBank Group invested $2 billion in the chipmaker. SoftBank bought shares at $23 apiece, slightly below Monday’s close of $23.66, securing just under a 2% stake through a primary issuance. This move makes SoftBank Intel’s sixth-largest investor.

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