The Sensex and Nifty 50 are likely to open higher on Wednesday, tracking mixed cues from overnight global markets.

Asian markets traded in the green, while the US stock market closed mixed overnight amid intensifying US-China trade tensions.

However, on Tuesday, the Indian stock indices extended their losses for the second straight session, with the Nifty 50 slipping below the 25,200 mark.

Domestic Market Recap

On Tuesday, Indian indices closed in the red:

• Sensex slumped by 297.07 points (0.36%) to close at 82,029.98
• Nifty 50 moved down by 81.85 points (0.32%) to settle at 25,145.50

Gift Nifty

Gift Nifty was trading near 25,288, around 82 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Overnight Wall Street Performance

The US stock market closed mixed on Tuesday as Federal Reserve Chair Jerome Powell’s remarks strengthened expectations of an interest rate cut in October, following signs of a softening labour market.

• The Dow Jones Industrial Average gained 202.88 points (0.44%) to close at 46,270.46.
• S&P 500 down by 10.41 points (0.16%), ending at 6,644.31.
• The Nasdaq Composite was trading lower by 172.91 points (0.76%), finishing at 22,521.70.

Crude Oil Prices

Crude oil prices declined as investors reacted to the International Energy Agency’s warning about a potential supply surplus in 2026.

• Brent crude slumped by 0.16% to $62.29/barrel
• US West Texas Intermediate (WTI) crude was trading 0.14% higher at $58.62/barrel

Gold Prices 

Meanwhile, gold prices climbed, hovering near record highs, as renewed US-China trade tensions drove investors toward safe-haven assets like bullion.

• Spot gold was trading 0.4% higher at $4,155.99 per ounce.
• The US gold futures gained by 0.3% at $4,174.30.

Overnight Major Global Events Driving Sentiment

1. US-China Trade Tensions: The US and China imposed additional port fees on ocean shipping firms handling global cargo. China confirmed it had begun collecting these special charges on US-owned, operated, built, or flagged vessels, while clarifying that Chinese-built ships would be exempt from the levies.
2. Fed Chair Jerome Powell: US Federal Reserve Chair Jerome Powell indicated that the central bank may soon halt its balance sheet reduction. He also noted that labour-market conditions continue to deteriorate, reinforcing investor expectations for another interest rate cut this month. Powell stated, “Our long-standing plan is to stop balance sheet runoff when reserves stand somewhat above the level we consider consistent with ample reserve conditions.”
3. IMF Ups India’s GDP Growth Estimates: The International Monetary Fund (IMF) raised India’s FY26 GDP growth forecast to 6.6%, up from its earlier estimate of 6.4%. In its latest World Economic Outlook (WEO) report, the IMF also trimmed its FY27 growth forecast by 20 basis points to 6.2%. It now projects global growth to slow from 3.3% in 2024 to 3.2% in 2025, and further to 3.1% in 2026.
4. Tech Mahindra Q2 Results: Tech Mahindra reported a 4.8% rise in Q2FY26 net profit to Rs 1,195 crore from Rs 1,141 crore, while revenue increased 4.8% sequentially to Rs 13,995 crore. EBIT surged 15.1% to Rs 1,699.4 crore from Rs 1,477 crore, with the EBIT margin improving by 100 basis points to 12.1%. The company’s board also declared an interim dividend of Rs 15 per share.

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