Sensex and Nifty 50 are likely to start Wednesday’s session on a subdued note, as weak overnight global cues and anticipation around the RBI policy weigh on investor sentiment.

Asian markets traded mixed, while US equities closed lower overnight due to renewed tariff concerns.

Investors will closely watch the Reserve Bank of India’s monetary policy announcement today. The Sanjay Malhotra-led Monetary Policy Committee (MPC) is widely expected to keep the repo rate unchanged amid global headwinds, though the commentary will be closely scrutinised for cues.

However, on Tuesday, Indian markets closed lower, marking losses in three of the last four sessions for both benchmark indices.

Domestic Market Recap

On Tuesday, Indian indices closed in the red:

• Sensex slumped by 308.47 points (0.38%) to close at 80,710.25
• Nifty 50 moved down by 73.20 points (0.30%) to settle at 24,649.55

Gift Nifty

Gift Nifty was trading near 24,685, around 23 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Wall Street Performance

US stock indices closed lower on Tuesday as investors assessed the potential economic fallout from renewed tariff concerns.

• Dow Jones Industrial Average slumped by 61.90 points (0.14%) to close at 44,111.74.
• S&P 500 down by 30.75 points (0.49%), ending at 6,299.19.
• The Nasdaq Composite was trading lower by 137.03 points (0.65%), finishing at 20,916.55.

Gold Prices

• Spot gold was trading up by 0.2% at $3,380.20/oz 
• US gold futures gained by 0.2% at $3,434.70

Crude Oil Prices

• Brent crude gained by 0.43% to $67.93/barrel
• US West Texas Intermediate (WTI) crude was trading 0.37% higher at $65.40/barrel

Overnight Major Global Events Driving Sentiment

1. Trump Tariff Threat: US President Donald Trump warned that he could “substantially” increase tariffs on India within the next 24 hours, pointing to India’s continued oil trade with Russia as a key concern.
2. US Trade Deficit: The US trade deficit shrank by 16% in June to $60.2 billion, driven by a sharp decline in consumer goods imports. Exports slipped slightly to $277.3 billion from over $278 billion in May, while imports dropped more significantly to $337.5 billion from $350.3 billion.

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