The Sensex and Nifty 50 are likely to open higher on Monday as upbeat overnight global market cues lifted sentiment, driven by rising hopes of a US Federal Reserve rate cut.

Asian markets traded in the green, while US stocks rallied last week, with the Dow Jones closing at a record high after Fed Chair Jerome Powell’s Jackson Hole speech.

Traders raised bets on a September rate cut following Powell’s comments, pricing in nearly a 90% chance of a reduction compared with about 75% before his remarks.

However, on Friday, Indian equities closed sharply lower, ending a six-day winning streak as benchmark indices retreated.

Domestic Market Recap

On Friday, Indian indices closed in the red:

• Sensex slumped by 693.86 points (0.85%) to close at 81,306.85
• Nifty 50 moved down by 213.65 points (0.85%) to settle at 24,870.10

Gift Nifty

Gift Nifty was trading near 24,966, around 68 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Wall Street Performance

US stocks closed higher on Friday after Fed Chair Jerome Powell, in his Jackson Hole speech, signaled a possible near-term interest rate cut.

• The Dow Jones Industrial Average surged by 846.24 points (1.89%) to close at 45,631.74.
• S&P 500 up by 96.74 points (1.52%), ending at 6,466.91.
• The Nasdaq Composite was trading higher by 396.22 points (1.88%), finishing at 21,496.54.

Crude Oil Prices

• Brent crude surged by 0.07% to $67.78/barrel
• US West Texas Intermediate (WTI) crude was trading 0.09% higher at $63.72/barrel

Gold Prices1

Gold prices slipped as the dollar strengthened, even as growing expectations of a US interest rate cut provided some support to the metal.

• Spot gold was trading down by 0.2% at $3,364.25/oz 
• US gold futures were trading 0.3% lower at $3,409.80

Overnight Major Global Events Driving Sentiment

1. Russia-Ukraine War: Russia reported that Ukrainian drone strikes overnight ignited a fire at a nuclear power plant in the western Kursk region. Officials added that the attacks also targeted several power and energy facilities.
2. Jerome Powell Jackson Hole Speech 2025: US Federal Reserve Chair Jerome Powell, in his Jackson Hole speech, cautiously signaled that the Fed may consider “policy adjustments” in the coming months. He hinted at a possible rate cut in September but emphasized that upcoming jobs and inflation data will remain key in shaping the decision.

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