The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Wednesday, tracking gains in the overnight global markets.

Asian markets advanced, and the US stock market rallied overnight as investors increased their bets on a US Federal Reserve rate cut.

However, on Tuesday, the Indian stock market extended its decline for the third straight session.

Domestic Market Recap

On Tuesday, Indian indices closed in the red:

• Sensex slumped by 313.70 points (0.37%) to close at 84,587.01
• Nifty 50 moved down by 74.70 points (0.29%) to settle at 25,884.80

Gift Nifty

Gift Nifty was trading near 26,149, around 93 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 expectations for a Federal Reserve interest rate cut continued to strengthen.

• The Dow Jones Industrial Average soared by 664.18 points (1.43%) to close at 47,112.45.
• S&P 500 up by 60.77 points (0.77%), ending at 6,765.89.
• The Nasdaq Composite was higher by 153.59 points (0.67%), finishing at 23,025.59.

Overnight Major Global Events Driving Sentiment

1. India–European Union FTA: India and the European Union reaffirmed their goal to finalise the Free Trade Agreement (FTA) negotiations by the end of this year and agreed to speed up discussions on the Investment Protection Agreement and the Agreement on Geographical Indications.
2. Russia–Ukraine Peace Deal: Ukraine endorsed the core elements of a US-brokered peace proposal after talks in Geneva, according to Reuters. A Ukrainian official said that some sensitive issues still need direct discussion between President Volodymyr Zelenskyy and US President Donald Trump.
3. US–China Trade Talks: US President Donald Trump said he urged Chinese President Xi Jinping during a phone call on Monday to speed up and expand China’s purchases of US goods, and that Xi “more or less agreed.”
4. US Retail Sales: US retail sales grew at a slower pace in September, rising 0.2% after an unrevised 0.6% increase in August.
5. US Wholesale Inflation: US wholesale inflation picked up in September, with the producer price index rising 0.3% from the previous month after a 0.1% decline in August. On a yearly basis, PPI climbed 2.7%.
6. US Consumer Confidence: US consumer confidence weakened in November, as the Conference Board’s index fell to 88.7 from an upwardly revised 95.5 in October.

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