The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open flat on Thursday amid mixed overnight signals from global markets.

Asian markets traded higher, with Japan’s Nikkei touching a record high, while the US stock market closed lower overnight after strong jobs data dampened sentiment.

However, on Wednesday, Indian equities ended a volatile session largely unchanged as investors booked profits after three straight sessions of solid gains.

Domestic Market Recap

On Wednesday, Indian indices closed in the red:

• Sensex slipped by 40.28 points (0.05%) to close at 84,233.64
• Nifty 50 moved up by 18.70 points (0.07%) to settle at 25,953.85

Gift Nifty

Gift Nifty was trading near 25,995, around 1 point higher than the previous Nifty futures close, hinting at a lacklustre start for Indian markets.

Overnight Wall Street Performance

The US stock market closed lower on Wednesday as investors reacted to a stronger-than-expected jobs report.

• The Dow Jones Industrial Average slipped by 66.74 points (0.13%) to close at 50,121.40.
• S&P 500 shed by 0.34 points (0.00%), ending at 6,941.47.
• The Nasdaq Composite slumped by 36.01 points (0.16%), finishing at 23,066.47.

Gold Prices

• Spot gold was trading 0.4% lower at $5,065.56 per ounce.
• The US gold futures soared by 0.05% at $5,096.60.

Crude Oil Prices

• Brent crude gained by 0.29% to $69.60/barrel
• US West Texas Intermediate (WTI) crude was trading 0.36% higher at $64.86/barrel

Overnight Major Global Events Driving Sentiment

1. Direct Tax Collection: Net direct tax collections rose 9.4% to about Rs 19.44 lakh crore in the current fiscal year up to 10 February. Gross direct tax collections increased 4.09% to Rs 22.78 lakh crore. In its Revised Estimates (RE) for FY2025–26, the government has projected total direct tax collections at Rs 24.84 lakh crore.
2. Trump Tariffs: US House lawmakers voted on Wednesday to reject former President Donald Trump’s tariffs on Canadian goods. Democrats introduced the measure, and it passed 219–211, with six Republicans supporting it. However, the move remains largely symbolic, as it still requires approval from the US Senate and the president’s signature to take effect.
3. US Nonfarm Payrolls: US employers stepped up hiring in January, and the unemployment rate fell to 4.3%, signalling stability in the labour market. Nonfarm payrolls rose by 130,000 jobs last month after a downwardly revised increase of 48,000 in December. Economists polled by Reuters had expected payrolls to rise by 70,000. The unemployment rate declined from 4.4% in December.
4. US Treasury Yields: US Treasury yields climbed following the stronger jobs report. The benchmark 10-year Treasury yield rose to 4.17%, while the two-year Treasury yield—more sensitive to Federal Reserve policy expectations—advanced six basis points to 3.51% from 3.45%.

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