Sensex and Nifty 50 are likely to open flat on Thursday as overnight global markets sent mixed signals. Most Asian markets traded higher, while US stocks ended mixed overnight, with the S&P 500 and Nasdaq closing at record highs.

However, on Wednesday, the Indian market closed higher, driven by optimism over a potential India-US trade deal.

Domestic Market Recap

On Wednesday, Indian indices closed in the green:

• Sensex gained by 323.83 points (0.40%) to close at 81,425.15
• Nifty 50 moved up by 104.50 points (0.42%) to settle at 24,973.10

Gift Nifty

Gift Nifty was trading near 25,088, around 16 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Wall Street Performance

The US stocks ended mixed on Wednesday as cooler-than-expected inflation data boosted bets on a Federal Reserve rate cut next week, lifting the S&P 500 and Nasdaq to record-high closes.

• The Dow Jones Industrial Average slumped by 220.42 points (0.48%) to close at 45,490.92.
• S&P 500 up by 19.43 points (0.30%), ending at 6,532.04.
• The Nasdaq Composite was trading higher by 6.57 points (0.03%), finishing at 21,886.06.

Gold Prices

• Spot gold was trading up by 0.1% at $3,645.04/oz
• US gold futures were trading 0.1% higher at $3,682.90

Overnight Major Global Events Driving Sentiment

1. India-US Trade Talks: Union Commerce and Industry Minister Piyush Goyal said India is holding “active dialogue” with the United States for a free trade agreement. Speaking at a FICCI event, he added that India is also negotiating a trade deal with New Zealand, while talks with the European Union are underway in New Delhi to conclude an agreement.
2. US Inflation: US producer prices fell unexpectedly in August as the Producer Price Index (PPI) for final demand dipped 0.1%, following a downwardly revised 0.7% jump in July. Economists polled by Reuters had expected a 0.3% rise after the previously reported 0.9% surge in July.
3. Sebi Eases FPI Compliance Norms: Sebi announced that foreign portfolio investors who invest only in government securities under the fully accessible route will not need to provide investor group details. The regulator added that such investors will also be exempt from certain disclosure and reporting requirements applicable to regular FPIs.
4. Japan Inflation: Japan’s wholesale prices rose 2.7% in August compared with a year earlier. The corporate goods price index (CGPI), which tracks prices companies charge each other for goods and services, matched market forecasts and followed a revised 2.5% increase in July.

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