The Indian stock market is likely to open flat to lower on Wednesday, September 23, as Gift Nifty pointed to a muted overnight start.

Asian markets traded higher on Wednesday, while US stock futures saw mixed moves on Tuesday.

Indian equities gave up the previous session’s gains on Tuesday, September 22, as sharp declines in technology, financial and FMCG stocks weighed on the benchmark indices.

Domestic Market Recap

On Tuesday, Indian indices ended red:

• Sensex slipped by 329.91 points (0.44%) to close at 74,529.08.
• Nifty 50 moved down by 85.30 points (0.36%) to settle at 23,329.

Gift Nifty

Gift Nifty was trading near 23,337, around 57 points lower than the previous Nifty futures close, hinting at a muted start for Indian markets.

Overnight Wall Street Performance

US benchmark indices ended Tuesday, September 22, on a mixed note. Continued buying in technology stocks supported the market, while weakness in financial stocks weighed on the Dow Jones.

• The Dow Jones Industrial Average slumped by 185.16 points (0.36%) to close at 51,863.69.
• S&P 500 was down by 0.06 points (0.00%), ending at 7.764.64.
• The Nasdaq Composite was higher by 122.18 points (0.45%), finishing at 27,244.28.

Overnight Major Global Events Driving Sentiment

1. US-Iran diplomatic talks: The biggest global trigger today is the possibility of a US-Iran diplomatic breakthrough at the UN General Assembly. Brent crude has fallen back below $100 a barrel, around $99, from above $109 last week, as markets price in the possibility of a diplomatic solution and some restoration of oil supplies.
2. RBI liquidity management: The RBI’s liquidity-management operations are becoming increasingly important for the Indian market. The central bank has reduced the banking system’s surplus liquidity by 55%, from Rs 11.16 lakh crore to Rs 4.92 lakh crore, through bond sales, FX swaps and other measures.

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