India’s benchmark indices, the Sensex and Nifty 50, are likely to open slightly higher on Tuesday, tracking mixed overnight cues from global markets.

Asian markets are trading in positive territory, while US equities ended higher, with the S&P 500 and the Dow Jones Industrial Average closing at record highs.

However, on Monday, Indian equities broke their five-session losing streak and finished higher after signs of progress in US–India trade deal discussions boosted sentiment.

Domestic Market Recap

On Monday, Indian indices closed in the green:

• Sensex surged by 301.93 points (0.36%) to close at 83,878.17
• Nifty 50 moved up by 106.95 points (0.42%) to settle at 25,790.25

Gift Nifty

Gift Nifty was trading near 25,926, around 50 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Overnight Wall Street Performance

Moreover, the US stock market closed higher on Monday, as gains in technology and consumer staples stocks pushed the S&P 500 and the Dow Jones to record closing highs.

• The Dow Jones Industrial Average gained by 86.13 points (0.17%) to close at 49,590.20.
• S&P 500 up by 10.99 points (0.16%), ending at 6,977.27.
• The Nasdaq Composite was higher by 62.56 points (0.26%), finishing at 23,733.90.

Gold Prices

• Spot gold was trading 0.32% lower at $4,590.35 per ounce.
• The US gold futures were lower by 0.34% at $4,599.11.

Crude Oil Prices

• Brent crude soared by 0.27% to $64.04/barrel
• US West Texas Intermediate (WTI) crude was trading 0.62% higher at $59.69/barrel

Overnight Major Global Events Driving Sentiment

1. Direct Tax Collection: The Union government recorded an 8.8% year-on-year jump in direct tax collections to Rs 18.37 lakh crore as of mid-January 2026, according to data from the Central Board of Direct Taxes (CBDT). Net direct tax collections stood at Rs 16.88 lakh crore during the same period last year.
2. India CPI Inflation: Retail inflation climbed to a three-month high of 1.33% in December, driven mainly by rising food prices. Headline CPI inflation had eased to 0.71% in November, compared with 5.22% in December 2024.
3. US Federal Reserve: New York Fed President John Williams said the US central bank faces no immediate pressure to alter its monetary policy stance, according to Reuters. He noted that policy remains “in a good place” and added that there is no strong push to change interest rates at this stage.
4. Trump Tariffs: US President Donald Trump announced that the United States will impose a 25% tariff on trade with any country that does business with Iran. In a post on Truth Social, he said the tariff would apply immediately to all business conducted with the US.

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