Sensex and Nifty 50 are likely to open flat on Tuesday as mixed overnight global market cues weigh on sentiment.

Asian markets traded higher, while US equities closed in the green overnight as investors looked ahead to the Federal Reserve’s key policy decision this week.

Furthermore, the Federal Open Market Committee (FOMC) is widely expected to deliver a 25-basis-point rate cut in its September 16–17 meeting, with traders pricing in a 96% probability of the move on Monday.

Moreover, Indian equities closed lower on Monday as investors turned cautious ahead of the Fed’s policy outcome.

Domestic Market Recap

On Monday, Indian indices closed in the red:

• Sensex slumped by 118.96 points (0.15%) to close at 81,785.74
• Nifty 50 moved down by 44.80 points (0.18%) to settle at 25,069.20

Gift Nifty

Gift Nifty was trading near 25,161, around 3 points lower than the previous Nifty futures close, hinting at a lacklustre start for Indian markets.

Wall Street Performance

The US equities closed higher on Monday, with the S&P 500 and Nasdaq hitting intraday record highs.

• The Dow Jones Industrial Average surged by 49.23 points (0.11%) to close at 45,883.45.
• S&P 500 up by 30.99 points (0.47%), ending at 6,615.28.
• The Nasdaq Composite was trading higher by 207.65 points (0.94%), finishing at 22,348.75.

Gold Prices

• Spot gold was trading 0.1% higher at $3,680.17/oz
• US gold futures were trading flat at $3,718.80

Crude Oil Prices

Crude oil prices rose further as Ukrainian drone attacks on Russian refineries fueled concerns about potential supply disruptions.

• Brent crude gained by 0.19% to $67.57/barrel
• US West Texas Intermediate (WTI) crude was trading 0.17% lower at $63.41/barrel

Overnight Major Global Events Driving Sentiment

1. India-US Trade Talks: India and the US will resume trade talks today as Washington’s chief negotiator, Brendan Lynch, meets his Indian counterpart, Rajesh Agrawal, special secretary in the commerce department, to push forward negotiations on a bilateral trade agreement.
2. India Unemployment: India’s unemployment rate fell slightly to 5.1% in August, marking its second consecutive monthly decline after 5.2% in July and 5.6% in June, according to the statistics ministry’s Periodic Labour Force Survey (PLFS).
3. US-China Trade Talks: US President Donald Trump said trade talks with China “went very well” and hinted that both sides may have reached a deal to resolve Washington’s concerns over TikTok’s ownership.

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