Indian benchmark indices, Sensex and Nifty 50, are likely to open higher on Thursday after the GST Council, in a late Wednesday meeting, approved rate cuts on 396 items.

Asian markets advanced on Thursday, tracking an overnight tech rally on Wall Street that lifted the S&P 500 and Nasdaq Composite, even as broader economic concerns continued to weigh on equities.

However, on Wednesday, the Indian stock market closed higher, led by strong buying in banking and metal stocks, as investors positioned themselves ahead of the GST Council’s rate-cut decision.

Domestic Market Recap

On Wednesday, Indian indices closed in the green:

• Sensex gained by 409.83 points (0.51%) to close at 80,567.71
• Nifty 50 moved up by 135.45 points (0.55%) to settle at 24,715.05

Gift Nifty

Gift Nifty was trading near 24,960, around 124 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Wall Street Performance

Overnight in the US, the three major indices ended mixed. The S&P 500 gained on Wednesday, driven by strength in tech stocks after a federal court ruling in an Alphabet antitrust case boosted optimism that major technology companies can withstand regulatory scrutiny.

• The Dow Jones Industrial Average slumped by 24.58 points (0.05%) to close at 45,271.23.
• S&P 500 up by 32.72 points (0.51%), ending at 6,448.26.
• The Nasdaq Composite was trading higher by 218.10 points (1.02%), finishing at 21,497.73.

Crude Oil Prices

Oil extended its decline on Thursday, after sliding more than 2% in the previous session, as investors awaited this weekend’s OPEC+ meeting, where producers are set to discuss a potential hike in output targets.

• Brent crude dropped by 0.40% to $67.33/barrel
• US West Texas Intermediate (WTI) crude was trading 0.44% lower at $63.69/barrel

Gold Prices

Gold surged to fresh record highs on Wednesday, fueled by weaker US employment data that reinforced expectations of a Federal Reserve rate cut later this month. Persistent global uncertainties further boosted safe-haven demand.

• Spot gold was trading up by 1.2% at $3,576.59/oz 
• US gold futures were trading 1.2% higher at $3,635.50

Overnight Major Global Events Driving Sentiment

1. Trump Tariffs on India: US President Donald Trump accused India of imposing steep tariffs on American goods but said New Delhi has now offered “zero tariffs” amid escalating trade tensions between the two countries. “I understand tariffs better than anyone in the world. With my tariffs, countries started dropping theirs. India had the highest tariffs… and now they’ve offered me zero tariffs. No tariffs at all,” Trump said during a radio interview. He added, “Without tariffs, India would never have made that offer. You must have tariffs — they make us economically strong.”
2. Japan’s Bond Yield: Japan’s 30-year bond yield climbed to a record high on Wednesday, surging 100 basis points this year due to stubborn inflation, weak real interest rates, and political uncertainty.
3. US Treasury Yields: Global bond markets stayed under pressure as long-term borrowing costs rose worldwide. On Wednesday, the US 30-year Treasury yield crossed 5% for the first time since July, after a court ruling declared most Trump-era tariffs illegal, clouding the outlook for future tariff revenues.

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