Positive overnight global cues are likely to lift the Indian benchmark indices, Sensex and Nifty 50, at the open on Wednesday.

Asian markets advanced, and Wall Street closed higher overnight, driven by gains in technology and financial stocks.

Moreover, on Tuesday, the Indian stock market extended its rally for a second straight session and finished the day in positive territory.

Domestic Market Recap

On Tuesday, Indian indices closed in the green:

• Sensex gained by 173.81 points (0.21%) to close at 83,450.96
• Nifty 50 moved down by 42.65 points (0.17%) to settle at 25,725.40

Gift Nifty

Gift Nifty was trading near 25,762, around 23 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Overnight Wall Street Performance

The US stock market closed marginally higher on Tuesday, supported by gains in technology and financial stocks.

• The Dow Jones Industrial Average gained by 32.26 points (0.07%) to close at 49,533.19.
• S&P 500 moved up by 7.05 points (0.10%), ending at 6,843.22.
• The Nasdaq Composite was higher by 31.71 points (0.14%), finishing at 22,578.38.

Crude Oil Prices

• Brent crude slipped by 0.03% to $67.36/barrel
• US West Texas Intermediate (WTI) crude was trading 0.14% lower at $62.24/barrel

Overnight Major Global Events Driving Sentiment

1. Iran–US Nuclear Talks: Iran and the United States have agreed on the main “guiding principles” during recent discussions aimed at resolving their long-running nuclear dispute. However, Iranian Foreign Minister Abbas Araqchi clarified that reaching an understanding on principles does not mean a final agreement is imminent, indicating that further negotiations will be required before any deal is concluded.
2. Japan Trade Deficit: Japan’s exports increased for the fifth straight month in January, reflecting continued external demand. Export value rose 16.8% year-on-year, surpassing the median market forecast of a 12% increase and accelerating from December’s 5.1% growth. Meanwhile, imports declined 2.5% compared to a year earlier, defying expectations of a 3% rise. As a result, Japan recorded a trade deficit of 1.15 trillion yen (approximately $7.51 billion) in January, narrower than the projected deficit of 2.14 trillion yen.

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