Sensex and Nifty 50 may open flat on Tuesday as investors stay cautious after US President Donald Trump threatened India with higher tariffs. Positive global cues supported sentiment, with Asian markets trading higher and Wall Street rallying overnight.

However, on Monday, the Indian stock market closed on a strong note, as broad-based buying across sectors pushed the Nifty 50 above the 24,700 mark.

Domestic Market Recap

On Monday, Indian indices closed in the green:

• Sensex surged by 418.81 points (0.52%) to close at 81,018.72
• Nifty 50 moved up by 157.40 points (0.64%) to settle at 24,722.75

Gift Nifty

Gift Nifty was trading near 24,740, around 53 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Wall Street Performance

The US stock market closed higher on Monday, as benchmark indexes recorded their largest daily percentage gains since May 27.

• Dow Jones Industrial Average surged by 585.06 points (1.34%) to close at 44,173.64.
• S&P 500 up by 91.93 points (1.47%), ending at 6,329.94.
• The Nasdaq Composite was trading higher by 403.45 points (1.95%), finishing at 21,053.58.

Gold Prices

• Spot gold was trading up by 0.2% at $3,380.61/oz 
• US gold futures gained by 0.2% at $3,434.30

Crude Oil Prices

• Brent crude slumped by 0.01% to $68.75/barrel
• US West Texas Intermediate (WTI) crude was trading 0.05% lower at $66.26/barrel

Overnight Major Global Events Driving Sentiment

1. Trump Tariff Threat: US President Donald Trump announced plans to “substantially raise” tariffs on Indian exports to the US, citing India’s continued imports of Russian oil. He accused India of profiting by reselling discounted Russian crude in global markets, though he did not disclose the specific tariff rate he aims to impose.
2. Japan Services PMI: Japan’s service sector expanded at its fastest pace in five months during July. The S&P Global final Japan Services PMI rose to 53.6 in July, up from 51.7 in June, reflecting the strongest growth since February.

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