Indian benchmark indices Sensex and Nifty are likely to open flat on Wednesday, January 7, tracking mixed overnight cues from Asian markets.

However, on Tuesday, January 6, both Sensex and Nifty 50 ended lower for the second consecutive session as investors booked profits, even as global cues remained positive.

Domestic Market Recap

On Tuesday, Indian indices closed in the red:

• Sensex slumped by 376 points (0.44%) to close at 85,063.34
• Nifty 50 moved down by 72 points (0.27%) to settle at 26,178.70

Gift Nifty

Gift Nifty was trading near 26,214, around 67 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Overnight Wall Street Performance

Wall Street ended Tuesday on a positive note as chip stocks surged on renewed AI optimism, Moderna shares jumped sharply, and the Dow Jones Industrial Average closed at a record high.

• The Dow Jones Industrial Average soared by 484.90 points (0.99%) to close at 49,462.08.
• S&P 500 up by 42.77 points (0.62%), ending at 6,944.82.
• The Nasdaq Composite was higher by 151.35 points (0.65%), finishing at 23,547.17.

Gold Prices

• Spot gold was trading 0.66% lower at $4,456.14 per ounce.
• The US gold futures were lower by 0.67% at $4,465.90.

Crude Oil Prices

• Brent crude slipped by 0.94% to $60.13/barrel
• US West Texas Intermediate (WTI) crude was trading 1.31% lower at $56.38/barrel

Overnight Major Global Events Driving Sentiment

1. US–Venezuela Conflict: On Saturday, January 3, the United States launched what it described as large-scale military strikes in Venezuela and took President Nicolás Maduro and his wife into custody, transferring them to the US to face legal proceedings. Maduro, 63, appeared before a federal court in New York on Monday, where he pleaded not guilty to four criminal charges. US President Donald Trump said Washington would effectively take control of Venezuela until the country undergoes a “safe” transition to democracy, as authorities brought Maduro to the US for trial.
2. US Federal Reserve Cuts Key Rate: The US Federal Reserve reduced its benchmark interest rate by 25 basis points on Wednesday, marking its third consecutive rate cut, but signalled a possible pause in further easing in the coming months. The move lowered the policy rate to around 3.6%, the lowest level in nearly three years. While rate cuts typically reduce borrowing costs for mortgages, auto loans, and credit cards, broader market forces also shape how those rates adjust.
3. India–US Trade Deal: US Representative Bill Huizenga highlighted the growing economic and strategic depth of the India–US relationship, pointing to increasing interest from American companies and the need for closer cooperation to support stability in the Indo-Pacific. Speaking at a House Foreign Affairs Subcommittee hearing, he cited India’s strong economic growth and stressed that US businesses want a level playing field. He added that a new trade agreement under President Trump and Prime Minister Modi could further strengthen bilateral ties. 

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