The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to see heightened volatility on Wednesday after a sharp sell-off in global markets.

Asian equities declined, while Wall Street closed steeply lower overnight, with all three major indices logging their worst single-day fall since October 10.

On Tuesday, persistent selling pressure dragged Indian equities sharply lower as investors remained cautious amid global trade war concerns and weak Q3 earnings.

Domestic Market Recap

On Tuesday, Indian indices closed in the red:

• Sensex crashed by 1,065.71 points (1.28%) to close at 82,180.47
• Nifty 50 moved down by 353 points (1.38%) to settle at 25,232.50

Gift Nifty

Gift Nifty was trading near 25,297, around 38 points higher than the previous Nifty futures close, hinting at a lackluster start for Indian markets.

Overnight Wall Street Performance

The US stock market closed lower on Tuesday, with all three major indices recording their steepest single-day declines in three months, as widespread selling followed concerns over fresh tariff threats by President Donald Trump against Europe.

• The Dow Jones Industrial Average crashed by 870.74 points (1.76%) to close at 48,488.59.
• S&P 500 down by 143.15 points (2.06%), ending at 6,796.86.
• The Nasdaq Composite was lower by 561.07 points (2.39%), finishing at 22,954.32.

Gold Prices

• Spot gold was trading 2.29% higher at $4,870.19 per ounce.
• The US gold futures were higher by 2.71% at $4,719.776.

Crude Oil Prices

• Brent crude slipped by 1.31% to $64.07/barrel
• US West Texas Intermediate (WTI) crude was trading 1.31% lower at $59.65/barrel

Overnight Major Global Events Driving Sentiment

1. India–European Union Trade Deal: India and the European Union are nearing the finalisation of a Free Trade Agreement, which European Commission President Ursula von der Leyen described as the “mother of all deals,” ahead of her visit to New Delhi. India and the EU are expected to announce the conclusion of FTA negotiations at the India–EU summit scheduled for January 27, 2026.

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