The equity market may open lower on Tuesday as weak overnight global cues weigh on sentiment ahead of the US tariff deadline on Indian goods.

Asian markets traded in the red, while Wall Street slipped overnight, with MSCI’s broadest Asia-Pacific index outside Japan falling 0.2%.

However, on Monday, Indian equities closed with decent gains, driven by buying in select IT and financial heavyweights.

Domestic Market Recap

On Monday, Indian indices closed in the green:

• Sensex surged by 329.06 points (0.40%) to close at 81,635.91
• Nifty 50 moved up by 97.65 points (0.39%) to settle at 24,967.75

Gift Nifty

Gift Nifty was trading near 24,925, around 64 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Wall Street Performance

The US stock market closed lower on Monday as investors turned cautious ahead of AI chipmaker Nvidia’s quarterly results and key economic data due this week.

• The Dow Jones Industrial Average slumped by 349.27 points (0.77%) to close at 45,282.47.
• S&P 500 down by 27.59 points (0.43%), ending at 6,439.32.
• The Nasdaq Composite was trading lower by 47.24 points (0.22%), finishing at 21,449.29.

Crude Oil Prices

• Brent crude slumped by 0.52% to $68.44/barrel
• US West Texas Intermediate (WTI) crude was trading 0.59% higher at $64.42/barrel

Gold Prices

• Spot gold was trading up by 0.5% at $3,384.34/oz 
• US gold futures were trading 0.4% higher at $3,432.40

Overnight Major Global Events Driving Sentiment

1. Trump Tariffs Threat: US President Donald Trump warned that countries imposing digital taxes would face “additional tariffs” on their exports to the US if they failed to scrap such legislation.
2. Trump on China: Trump said China must supply the US with magnets or face a 200% tariff. China, already sensitive about rare earths, tightened its grip on supply by adding magnets and other rare earth items to its export restriction list in April as retaliation against US tariff hikes.
3. Trump Fires Fed’s Cook: Donald Trump dismissed Federal Reserve Governor Lisa Cook on Monday, alleging she made false statements on mortgage applications. Trump claimed sufficient evidence proved impropriety in her mortgage borrowing.
4. US Home Sales: Sales of new US single-family homes declined in July, falling 0.6% to a seasonally adjusted annual rate of 652,000 units. However, June’s pace was revised upward to 656,000 units from the earlier estimate of 627,000 units.

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