The domestic equity market indices, Sensex and Nifty 50, may open flat on Wednesday as investors await the Reserve Bank of India’s (RBI) monetary policy decision amid mixed overnight global cues.

Asian markets traded mixed, while US stocks closed higher overnight despite persistent worries over a government shutdown.

The RBI will announce its monetary policy later today, with Governor Sanjay Malhotra-led Monetary Policy Committee (MPC) widely expected to keep the repo rate unchanged and maintain its current stance.

However, on Tuesday, Indian equities extended their losing streak, with the market ending lower for the eighth straight session under heavy selling pressure.

Domestic Market Recap

On Tuesday, Indian indices closed in the red:

• Sensex slumped by 97.32 points (0.12%) to close at 80,267.62
• Nifty 50 moved down by 23.80 points (0.08%) to settle at 24,611.10

Gift Nifty

Gift Nifty was trading near 24,773, around 5 points lower than the previous Nifty futures close, hinting at a lacklustre start for Indian markets.

Overnight Wall Street Performance

The US stock market closed higher on Tuesday, posting both quarterly and monthly gains, even as investors prepared for a potential US government shutdown.

• The Dow Jones Industrial Average surged by 81.82 points (0.18%) to close at 46,397.89.
• S&P 500 up by 27.25 points (0.41%), ending at 6,688.46.
• The Nasdaq Composite was trading higher by 68.89 points (0.31%), finishing at 22,660.10.

Gold Prices 

Gold prices slipped but hovered close to record highs as growing risks of a US government shutdown boosted safe-haven demand.

• Spot gold was trading 0.2% higher at $3,861.22 per ounce.
• The US gold futures increased by 0.4% to $3,888.80.

Overnight Major Global Events Driving Sentiment

1. India Fiscal Deficit: India’s fiscal deficit reached 38.1% of the full-year target by the end of August. In absolute terms, the gap between government expenditure and revenue stood at Rs 5,98,153 crore during April–August 2025-26. The Centre projects the fiscal deficit for FY26 at 4.4% of GDP, or Rs 15.69 lakh crore.
2. US Government Shutdown: The US moved closer to a government shutdown on Tuesday after the Senate vote to extend funding past the midnight deadline failed. President Donald Trump also threatened to extend his purge of the federal workforce.
3. JOLTS Data: US job openings inched up in August, while hiring fell. The JOLTS report showed that openings, a measure of labour demand, rose by 19,000 to 7.227 million as of August-end, slightly above economists’ forecast of 7.185 million. However, hiring slipped by 114,000 to 5.126 million, while layoffs declined by 62,000 to 1.725 million.
4. Japan PMI: Japan’s manufacturing activity contracted at the sharpest pace in six months in September. The S&P Global Japan Manufacturing PMI fell to 48.5 from 49.7 in August, marking the steepest deterioration since March. The index stayed close to the flash estimate of 48.4.
5. US Consumer Confidence: US consumer confidence fell more than expected in September as concerns over job availability grew. The Conference Board reported that its consumer confidence index dropped 3.6 points to 94.2, against economists’ forecast of 96.0.

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