The Indian benchmark indices, Sensex and Nifty 50, are set to open higher on Wednesday, tracking an overnight global market rally ahead of the US Federal Reserve’s anticipated interest rate cut following its policy meeting later today.

Asian markets traded in the green, while Wall Street rallied overnight, with all three major US indices closing at record highs.

However, on Tuesday, Indian equities ended lower due to profit booking, though the Nifty 50 managed to hold above the 25,900 mark.

Domestic Market Recap

On Tuesday, Indian indices closed in the red:

• Sensex slumped by 150.68 points (0.18%) to close at 84,628.16
• Nifty 50 moved down by 29.85 points (0.11%) to settle at 25,936.20

Gift Nifty

Gift Nifty was trading near 26,136, around 46 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 higher on Tuesday, as technology stocks led the rally, pushing all three major indices to fresh record highs once again.

• The Dow Jones Industrial Average gained by 161.78 points (0.34%) to close at 47,706.37.
• S&P 500 up by 15.73 points (0.23%), ending at 6,890.89.
• The Nasdaq Composite was trading higher by 190.04 points (0.80%), finishing at 23,827.49.

Crude Oil Prices

• Brent crude gained 0.23% to $64.55/barrel
• US West Texas Intermediate (WTI) crude was trading 0.22% higher at $60.29/barrel

Gold Prices 

• Spot gold was trading 0.7% higher at $3,977.49 per ounce.
• The US gold futures gained by 0.2% at $3,991.70.

Overnight Major Global Events Driving Sentiment

1. Nvidia-Nokia Deal: Nvidia Corp. is investing $1 billion in Nokia Oyj, acquiring a 2.9% stake by purchasing around 166 million shares at $6.01 each. Under this partnership, Nvidia will provide AI-powered computing systems to boost Nokia’s 5G and 6G network software, while both companies will explore integrating Nokia’s data centre technology into Nvidia’s AI infrastructure.
2. US Fed Meeting: The US Federal Reserve’s two-day monetary policy meeting began on October 28, with Fed Chair Jerome Powell’s FOMC widely expected to reduce interest rates by 25 basis points (bps).
3. Israel-Gaza War: Israeli fighter jets launched airstrikes on Gaza after accusing Hamas of violating a ceasefire. According to local health officials, the attacks killed at least 26 people.

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