Sensex and Nifty 50 are likely to open higher on Wednesday as strong overnight global cues lift investor sentiment.

Asian markets rose after the US-Japan trade deal, while US equities ended mixed overnight, with the S&P 500 closing at a record high.

However, on Tuesday, Indian benchmark indices ended a choppy session nearly flat, slightly in the red.

Domestic Market Recap

On Tuesday, Indian indices closed in the red:

• Sensex Slumped by 13.53 points (0.02%) to close at 82,186.81
• Nifty 50 moved down by 29.80 points (0.12%) to settle at 25,060.90

Gift Nifty

Gift Nifty was trading near 25,162, around 68 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Wall Street Performance

• Dow Jones Industrial Average surged by 179.37 points (0.40%) to close at 44,502.44.
• S&P 500 up by 4.02 points (0.06%), ending at 6,309.62.
• The Nasdaq Composite was trading lower by 81.49 points (0.39%), finishing at 20,892.69.

Gold Prices

Gold prices climbed to their highest level in over five weeks, buoyed by a weaker US dollar and falling Treasury yields. Spot gold held firm at $3,430.19 per ounce after earlier touching its highest mark since June 16. Meanwhile, US gold futures remained flat at $3,443.30.

Crude Oil Prices

Crude oil prices stabilised following the announcement of the US-Japan trade deal and industry data indicating a decline in US crude inventories last week.

• Brent crude surged by 0.48% to $68.92/barrel
• US West Texas Intermediate (WTI) crude: 0.51% to $65.64/barrel

Overnight Major Global Events Driving Sentiment

1. US-Japan Trade Deal: President Donald Trump announced that the United States and Japan have finalised a trade agreement that reduces tariffs on Japanese imports, including automobiles. The new pact lowers US auto tariffs to 15% from the previous 25%. In a Truth Social post, Trump highlighted that the deal also involves $550 billion in Japanese investments in the US.
2. India–UK Trade Deal: India’s Union Cabinet has approved a free trade agreement (FTA) with the United Kingdom, which Prime Minister Narendra Modi hailed as a “landmark deal.” The agreement will be formally signed during Modi’s upcoming visit to London, with Commerce and Industry Minister Piyush Goyal set to accompany him.

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