India’s benchmark indices, Sensex and Nifty 50, are likely to open higher on Thursday, driven by overnight optimism surrounding a potential India–US trade deal.

Asian markets traded lower, while US markets slipped overnight due to escalating US–China trade tensions and mixed corporate earnings.

However, on Tuesday, the Indian stock market closed with modest gains during the special Diwali Muhurat trading session.

Domestic Market Recap

On Tuesday, Indian indices closed in the green:

• Sensex soared by 62.97 points (0.07%) to close at 84,426.34
• Nifty 50 moved up by 25.45 points (0.10%) to settle at 25,868.60

Gift Nifty

Gift Nifty was trading near 26,281, around 374 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Overnight Wall Street Performance

The US stock market ended lower on Wednesday after mixed earnings dampened risk sentiment.

• The Dow Jones Industrial Average slumped by 334.33 points (0.71%) to close at 46,590.41.
• S&P 500 down by 35.95 points (0.53%), ending at 6,699.40.
• The Nasdaq Composite was trading lower by 213.27 points (0.93%), finishing at 22,740.40.

Crude Oil Prices

Meanwhile, crude oil prices surged after US President Donald Trump imposed sanctions on Russia’s two largest oil companies.

• Brent crude soared 2.54% to $64.18/barrel
• US West Texas Intermediate (WTI) crude was trading 2.58% higher at $59.93/barrel

Gold Prices 

Gold prices fell for the third consecutive session, retreating toward $4,000 an ounce, with spot gold trading around $4,090 an ounce. Since its all-time high, the Gold has dropped 6% in just two sessions. 

Overnight Major Global Events Driving Sentiment

1. India-US Trade Deal: India and the US are nearing a trade agreement that would cut tariffs on Indian exports to 15–16% from the current 50% according to a report citing three people familiar with the discussions. With energy and agriculture taking centre stage in the talks, India is likely to agree to a phased reduction in Russian oil imports, the report added.
2. India’s Russian Oil Imports: US President Donald Trump announced that India will reduce its Russian oil imports by nearly 40% by year-end. He said the phase-down will be gradual, adding that India plans to bring purchases “down to almost nothing” before the year concludes.
3. US Sanctions Russian Oil: The US government imposed sanctions on Rosneft and Luko, two of Russia’s largest oil firms, accusing them of showing “no serious commitment to peace in Ukraine.” President Trump said his talks with Russian President Vladimir Putin were “good” but ultimately “led nowhere.”
4. US-China Trade Tensions: The Trump administration is reportedly considering new restrictions on software-driven exports to China, including laptops, jet engines, and other technology products, in retaliation for Beijing’s latest curbs on rare earth exports, citing sources.

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