The Indian benchmark indices, Sensex and Nifty 50, are likely to open higher on Tuesday, September 15, as Gift Nifty indicated a positive start despite overnight rising crude oil prices.

Asian markets remained under pressure on Tuesday, while US stock futures traded flat ahead of the US Federal Reserve’s policy decision later this week.

Indian equities ended last week on a weak note, extending their weekly losing streak to five consecutive weeks. This marked the first time in a year that the domestic market recorded such a prolonged period of weekly declines.

Domestic Market Recap

On Friday, Indian indices ended red:

• Sensex dropped by 120.83 points (0.16%) to close at 74,781.76.
• Nifty 50 moved down by 79.70 points (0.34%) to settle at 23,398.10.

Gift Nifty

Gift Nifty was trading near 23,531, around 46 points higher than the previous Nifty futures close, hinting at a muted start for Indian markets.

Overnight Wall Street Performance

• The Dow Jones Industrial Average slumped by 152.09 points (0.29%) to close at 52,421.20.
• S&P 500 was down by 37.00 points (0.48%), ending at 7.619.98.
• The Nasdaq Composite was lower by 146.62 points (0.56%), finishing at 26,186.41.

Overnight Major Global Events Driving Sentiment

1. RBI’s liquidity operations: The central bank is also planning open-market bond sales worth around ₹1 trillion to absorb excess liquidity from the banking system. This makes RBI liquidity management an important factor for banks, bond yields and the broader financial market.
2. Fed policy expectations: The biggest global factor today is the US Federal Reserve’s upcoming policy decision. Markets are increasingly focused on whether the Fed will raise rates as inflation remains sticky. The latest US inflation reading has strengthened expectations of a rate hike, while the US 10-year Treasury yield has moved to around 5%.

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