Sensex and Nifty 50, the domestic equity benchmark indices, are likely to open cautiously on Wednesday as investors react to mixed overnight signals from global markets.

While most Asian markets traded lower, US stocks ended on a mixed note, with both the Nasdaq and S&P 500 closing in the red.

However, on Tuesday, the Indian stock market posted modest gains, with the Nifty 50 managing to stay above the 25,500 mark.

Domestic Market Recap

On Monday, Indian indices closed in the green:

• Sensex gained by 90.83 points (0.11%) to close at 83,697.29
• Nifty 50 moved up by 24.75 points (0.10%) to settle at 25,541.80

Gift Nifty

Gift Nifty was trading near 25,680, around 37 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Wall Street Performance

The US stock market closed mixed on Tuesday, as declines in large-cap tech stocks weighed on overall performance.

• Dow Jones Industrial Average surged by 400.17 points (0.91%) to close at 44,494.94.
• S&P 500 down by 6.94 points (0.11%), ending at 6,198.01.
• The Nasdaq Composite was trading lower by 166.84 points (0.82%), finishing at 20,202.89.

Gold Prices

• Spot gold was trading flat at $3,338.22/oz 
• US gold futures remained unchanged at $3,347.80

Overnight Major Global Events Driving Sentiment

1. US Manufacturing PMI: US manufacturing activity remained sluggish in June, with the Institute for Supply Management (ISM) reporting a slight rise in its manufacturing PMI to 49.0 from May’s six-month low of 48.5. This marked the fourth consecutive month the index stayed below 50, signalling continued contraction. 
2. Tax and Spending Bill: The Republican-led US Senate passed President Donald Trump’s sweeping tax and spending bill, advancing a major legislative package that includes many of his policy priorities. The bill, which adds $3.3 trillion to the national debt, now heads to the House for final approval.
3. US-India Trade Deal: The United States and India are close to finalising a deal aimed at reducing tariffs on American imports and helping India avoid steep levies set to take effect next week under the Trump administration, according to Treasury Secretary Scott Bessent.
4. US Job Openings: Job openings in the United States unexpectedly climbed in May, with the Labour Department’s JOLTS report showing an increase of 374,000 positions, pushing total vacancies to 7.769 million by the end of the month. The ratio of available jobs to unemployed individuals rose to 1.07 from 1.03 in April.

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