The benchmark indices Sensex and Nifty 50 are likely to open flat on Tuesday, tracking weak overnight cues from global markets.

Asian markets moved lower and US stock futures slipped after US President Donald Trump announced tariffs on eight European countries over Greenland, which weighed on investor sentiment.

However, on Monday, Indian equity markets closed lower as rising global trade tensions, triggered by Trump’s tariff announcement on eight European nations, pressured stocks.

Domestic Market Recap

On Monday, Indian indices closed in the red:

• Sensex slumped by 324.17 points (0.39%) to close at 83,246.18
• Nifty 50 moved down by 108.85 points (0.42%) to settle at 25,585.50

Gift Nifty

Gift Nifty was trading near 25,608, around 12 points higher than the previous Nifty futures close, hinting at a lackluster start for Indian markets.

Overnight Wall Street Performance

The US stock market remained closed on Monday, January 19, in observance of Martin Luther King Jr. Day. However, stock futures signaled a weaker start for Wall Street when trading resumes on Tuesday.

Gold Prices

• Spot gold was trading 0.73% higher at $4,715.54 per ounce.
• The US gold futures were higher by 2.71% at $4,719.776.

Crude Oil Prices

• Brent crude slipped by 0.14% to $64.03/barrel
• US West Texas Intermediate (WTI) crude was trading 0.13% lower at $59.35/barrel

Overnight Major Global Events Driving Sentiment

1. China LPR: China kept its benchmark lending rates unchanged for the eighth straight month in January. The central bank maintained the one-year Loan Prime Rate (LPR) at 3.0% and the five-year LPR at 3.5%.
2. Citi downgrades European equities: Citi cut its rating on continental European equities to “neutral” for the first time in over a year, citing rising transatlantic tensions and tariff-related uncertainty that weaken the near-term investment outlook.
3. Japanese Bond Yield: Japan’s 40-year government bond yield climbed to 4%, hitting its highest level since the bond’s launch in 2007. The yield jumped 5.5 basis points, marking the first time long-dated Japanese bond yields have touched 4% since the 20-year yield reached that level in December 1995, according to Bloomberg.

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