Sensex and Nifty 50 are set to open higher on Wednesday, driven by upbeat overnight global market cues. Asian markets traded higher, while the US stock market rallied overnight, with the S&P 500 and Nasdaq hitting record highs.

However, on Tuesday, the Indian stock market closed lower, resuming its downward trend due to losses in heavyweight stocks.

Domestic Market Recap

On Tuesday, Indian indices closed in the red:

• Sensex slumped by 368.49 points (0.49%) to close at 80,235.59
• Nifty 50 moved down by 97.65 points (0.40%) to settle at 24,487.40

Gift Nifty

Gift Nifty was trading near 24,616, around 61 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Wall Street Performance

The US stock market closed higher on Tuesday, with the S&P 500 and Nasdaq hitting record highs after inflation data strengthened expectations of a Federal Reserve interest rate cut next month.

• Dow Jones Industrial Average surged by 483.52 points (1.10%) to close at 44,458.61.
• S&P 500 up by 72.31 points (1.13%), ending at 6,445.76.
• The Nasdaq Composite was trading higher by 296.50 points (1.39%), finishing at 21,681.90.

Crude Oil Prices

• Brent crude slumped by 0.80% to $66.12/barrel
• US West Texas Intermediate (WTI) crude was trading 0.09% lower at $63.11/barrel

Gold Prices

• Spot gold was trading up by 0.1% at $3,347.09/oz 
• US gold futures were trading at $3,397.50

Overnight Major Global Events Driving Sentiment

1. India CPI Inflation: India’s retail inflation, measured by the Consumer Price Index (CPI), fell to 1.55% in July, dropping below the Reserve Bank of India’s comfort zone for the first time in eight years. The rate eased from 2.10% in June, marking its lowest level since June 2017.
2. Nvidia Dominated S&P: Nvidia Corp. closed with a market capitalisation of $4.47 trillion, representing over 8% of the S&P 500’s total market value, which is the highest weighting ever achieved by a single stock in the index’s history. Its share price edged up 0.52% to $183.10, boosting its market share in the S&P 500 to a record high.
3. US Inflation: In the US, consumer prices rose moderately in July, with the CPI increasing 0.2% after a 0.3% gain in June. On an annual basis, CPI advanced 2.7%, matching the pace recorded in June.
4. Japan Inflation: Japan’s annual wholesale inflation eased for the fourth straight month in July, as the corporate goods price index (CGPI) grew 2.6% from a year earlier, down from June’s 2.9% increase but slightly above the median forecast of 2.5%.

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