The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to witness a muted start on Wednesday as investors assess mixed overnight global market signals amid a broad-based selloff in technology and semiconductor stocks worldwide.

Asian markets traded mixed, while the US stock market closed lower overnight, dragged down by steep declines in technology shares.

Moreover, on Tuesday, the Indian stock market witnessed a sharp correction, with selling pressure intensifying across sectors and dragging the benchmark indices significantly lower.

Domestic Market Recap

On Tuesday, Indian indices ended red:

• Sensex crashed by 893.39 points (1.16%) to close at 76,200.68
• Nifty 50 moved down by 278.80 points (1.16%) to settle at 23,824.10

Gift Nifty

Gift Nifty was trading near 23,874, around 21 points higher than the previous Nifty futures close, hinting at a muted start for Indian markets.

Overnight Wall Street Performance

US stock market ended lower on Tuesday as a sharp selloff in semiconductor stocks weighed on investor sentiment, while concerns over the US Federal Reserve’s hawkish stance and the prospect of higher interest rates added further pressure on Wall Street.

• The Dow Jones Industrial Average slumped by 47.22 points (0.09%) to close at 51,665.49.
• S&P 500 was down by 107.32 points (1.44%), ending at 7.365.47.
• The Nasdaq Composite was lower by 579.56 points (2.21%), finishing at 25,587.04.

Crude Oil Prices

• Brent crude slumped by 0.99% to $76.32/barrel
• US West Texas Intermediate (WTI) crude was trading 1.05% lower at $72.44/barrel

Overnight Major Global Events Driving Sentiment

1. US–Iran Peace Deal: The Republican-controlled US Senate voted to end the US military conflict with Iran. Meanwhile, US President Donald Trump announced that Iran’s unfrozen assets would remain under Washington’s oversight and could only be used to purchase food and medical supplies from the United States. The move addresses a key sticking point in the peace negotiations, which both sides say continue to make progress.
2. India–US Trade Deal: The United States and India are nearing the completion of a landmark trade agreement. Bethany Poulos Morrison said Washington is “very, very close” to finalizing the deal, highlighting the significant progress made since both countries announced their intention to conclude the agreement in February 2026.
3. Bank of Japan: Several board members of the Bank of Japan expressed support for further interest rate increases, according to a summary of opinions from the bank’s June policy meeting. Policymakers argued that higher rates would help move the policy rate closer to a neutral level for the economy.
4. Japan Services PPI: Japan’s services producer price index (PPI) rose 3.3% year-on-year in May, matching the revised growth rate recorded in April. The index, which measures prices that companies charge each other for services, indicated that service-sector inflation remained firm.

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