Indian equities are set to trade within a narrow range on Wednesday, with the Sensex and Nifty 50 likely to open marginally lower as investors await the US Federal Reserve’s policy decision later in the day.

Asian markets traded in a tight range but edged higher as investors looked for clearer signals on the Fed’s stance ahead of its final rate decision of the year.

However, in the previous session on Tuesday, December 9, the Sensex and Nifty 50 posted losses for the second straight day, pressured by weak global cues ahead of the Fed outcome.

Domestic Market Recap

On Tuesday, Indian indices closed in the red:

• Sensex slumped by 436 points (0.51%) to close at 84,666.28
• Nifty 50 moved down by 121 points (0.47%) to settle at 25,839.65

Gift Nifty

Gift Nifty was trading near 25,907, around 24 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Overnight Wall Street Performance

Major Wall Street indices edged lower on Tuesday as investors positioned themselves ahead of an expected Fed rate cut while remaining cautious about possible hawkish signals from policymakers.

• The Dow Jones Industrial Average slumped by 179.03 points (0.38%) to close at 47,560.29.
• S&P 500 down by 6.00 points (0.09%), ending at 6,840.51.
• The Nasdaq Composite was higher by 30.58 points (0.13%), finishing at 23,576.49.

Gold Prices

• Spot gold was trading 0.6% higher at $4,211.77 per ounce.
• The US gold futures slumped by 0.4% to $4,236.20.

Crude Oil Prices

• Brent crude slumped by 0.88% to $61.94/barrel
• US West Texas Intermediate (WTI) crude was trading 1.07% lower at $58.25/barrel

Overnight Major Global Events Driving Sentiment

1. India–US Trade Talks: India and the US have begun three days of talks from December 10 to advance the first phase of a stalled bilateral trade deal. A US delegation led by Deputy USTR Rick Switzer is in New Delhi, reviving hopes of easing tariffs and strengthening a crucial strategic partnership amid China-related geopolitical concerns.
2. Paramount–Netflix Bidding War: The rivalry between Paramount, Skydance and Netflix for Warner Bros. Discovery has intensified and could stretch into 2026. Warner Bros. has 10 business days to respond to Paramount’s $30-per-share hostile bid, but is unlikely to exit its recently signed Netflix deal due to a $2.8 billion breakup fee.
3. US Fed Policy Decision: Markets are firmly focused on the Federal Reserve’s decision later today. While traders largely expect a 25-basis-point rate cut, analysts warn of deep divisions within the committee. CME FedWatch shows an 89% probability of a cut despite mixed economic data.

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