Sensex and Nifty 50 are likely to open lower on Wednesday and extend losses as weak overnight global market cues weigh on sentiment. Asian markets traded in the red, while US stocks closed lower overnight amid a global rise in bond yields.

However, on Tuesday, the Indian market slipped further, with late profit booking dragging the Nifty 50 below the 24,600 mark.

Domestic Market Recap

On Tuesday, Indian indices closed in the red:

• Sensex slumped by 206.61 points (0.26%) to close at 80,157.88
• Nifty 50 moved down by 45.45 points (0.18%) to settle at 24,579.60

Gift Nifty

Gift Nifty was trading near 24,618, around 73 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Wall Street Performance

The US stocks closed sharply lower on Tuesday as investors reassessed the outlook for President Donald Trump’s tariffs following a federal appeals court ruling.

• The Dow Jones Industrial Average slumped by 249.07 points (0.55%) to close at 45,295.81.
• S&P 500 down by 44.72 points (0.69%), ending at 6,41.54.
• The Nasdaq Composite was trading lower by 175.92 points (0.82%), finishing at 21,279.63.

Crude Oil Prices

• Brent crude was trading at $69.14/barrel
• US West Texas Intermediate (WTI) crude was trading 0.06% higher at $65.63/barrel

Gold Prices

Gold prices climbed to fresh record highs as investors grew more confident that the US Federal Reserve would cut interest rates in September.

• Spot gold was trading up by 0.2% at $3,540.64/oz 
• US gold futures were trading 0.4% higher at $3,607.60

Overnight Major Global Events Driving Sentiment

1. Trump Tariffs on India: US President Donald Trump ruled out lowering tariffs on India, responding “no” when asked if he would ease existing duties. He said the US maintains good relations with India but criticised the “imbalanced trade relationship” caused by high Indian levies.
2. US Treasury Yields: Bond yields climbed globally amid concerns over mounting debt. The US 30-year yield rose 5.1 bps to 4.96%, while the 10-year benchmark gained 4.5 bps to 4.27%.
3. Japan Services PMI: Japan’s services sector expansion slowed in August. The S&P Global final Services PMI slipped to 53.1 from July’s 53.6, but remained above the 50.0 growth threshold.
4. US Manufacturing PMI: US manufacturing shrank for the sixth consecutive month in August. The ISM Manufacturing PMI inched up to 48.7 from 48.0 in July.

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