Benchmark indices Sensex and Nifty 50 are likely to open flat on Wednesday, as investors react to mixed overnight global cues.

While Asian markets showed a mixed trend, US equities closed lower amid concerns surrounding US tariffs and uncertainty over the Federal Reserve’s policy stance.

However, on Tuesday, the Indian stock market closed higher, driven by last-hour short-covering that pushed the Nifty 50 above the 24,800 mark.

Domestic Market Recap

On Tuesday, Indian indices closed in the green:

• Sensex surged by 446.93 points (0.55%) to close at 81,3337.95
• Nifty 50 moved up by 140.20 points (0.57%) to settle at 24,821.10

Gift Nifty

Gift Nifty was trading near 24,821, around 17 points lower than the previous Nifty futures close, hinting at a lacklustre start for Indian markets.

Overnight Wall Street Performance

The US stock market closed lower on Tuesday as weak corporate earnings weighed on sentiment and investors looked ahead to the Federal Reserve’s policy decision.

• Dow Jones Industrial Average slumped by 204.57 points (0.46%) to close at 44,632.99.
• S&P 500 down by 18.91 points (0.30%), ending at 6,370.86.
• The Nasdaq Composite was trading lower by 80.29 points (0.38%), finishing at 21,098.29.

Gold Prices

Gold prices held steady as investors awaited the Federal Reserve’s policy statement later in the day for signals on potential interest rate cuts.

• Spot gold was trading flat at $3,329.19/oz 
• US gold futures gained by 0.1% at $3,327.70

Crude Oil Prices

Crude oil prices held their largest gain in six weeks after US President Donald Trump reiterated the possibility of imposing further economic sanctions on Russia if no truce is achieved with Ukraine.

• Brent crude surged by 0.12% to $72.60/barrel
• US West Texas Intermediate (WTI) crude was trading flat at $69.20/barrel

Overnight Major Global Events Driving Sentiment

1. Trump Tariffs: US President Donald Trump warned that Indian exports to the United States might face tariffs as high as 25%, though he clarified that no final decision had been made. When reporters aboard Air Force One asked whether the US would impose a 20–25% tariff on Indian goods, Trump replied, “I think so.”
2. US-China Trade Talks: US and Chinese officials decided to explore the possibility of extending their 90-day tariff truce after wrapping up two days of negotiations in Stockholm. Although they made no major breakthroughs, US officials noted that the final call on extending the truce is set to expire on August 12, which would rest with President Trump.

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