Sensex and Nifty 50 are likely to open flat on Thursday as mixed overnight global market cues keep investors cautious. Asian markets traded on a mixed note, while the US stock market closed mostly higher, with both the Nasdaq and S&P 500 hitting record closing highs.

However, on Wednesday, the Indian stock market declined, weighed down by selling pressure in select heavyweight stocks.

Domestic Market Recap

On Wednesday, Indian indices closed in the red:

• Sensex slumped by 287.60 points (0.34%) to close at 83,409.69
• Nifty 50 moved down by 88.40 points (0.35%) to settle at 25,453.40

Gift Nifty

Gift Nifty was trading near 25,567, around 20 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Overnight Wall Street Performance

The US stock market ended mostly higher on Wednesday, with the S&P 500 and Nasdaq hitting record closing highs, driven by strong gains in technology stocks and optimism surrounding the US-Vietnam trade deal.

• Dow Jones Industrial Average slumped by 10.52 points (0.02%) to close at 44,484.42.
• S&P 500 up by 29.41 points (0.47%), ending at 6,227.42.
• The Nasdaq Composite was trading higher by 190.24 points (0.94%), finishing at 20,393.13.

Crude Oil Prices

Crude oil prices slipped as worries about weak US demand resurfaced after government data revealed an unexpected increase in inventories.

• Brent crude slumped by 0.35% to $68.87/barrel
• US West Texas Intermediate (WTI) crude: -0.36% to $67.21/barrel

Gold Prices

• Spot gold was trading down by 0.3% at $3,345.57/oz 
• US gold futures slumped by 0.1% at $3,356.60

Overnight Major Global Events Driving Sentiment

1. US-Vietnam Trade Deal: President Donald Trump announced that the United States and Vietnam have finalised a trade agreement under which US tariffs on many Vietnamese goods will be reduced to 20%, down from the previously threatened 46%. Trump added that US products will be allowed to enter Vietnam duty-free, marking a significant step in strengthening bilateral trade ties.
2. Japan Services PMI: Japan’s services sector continued to grow in June, with business sentiment reaching a four-month high, according to Reuters. The final au Jibun Bank Japan Services PMI climbed to 51.7 in June, up from 51.0 in May and slightly above the flash estimate of 51.5. This marked the third straight month of expansion.
3. US Private Payrolls: US private sector employment contracted in June for the first time in over two years. According to the ADP National Employment Report, private payrolls dropped by 33,000, reversing a downwardly revised gain of 29,000 in May. 

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