The benchmark indices Sensex and Nifty 50 will likely open lower on Wednesday as overnight global market weakness weighs on sentiment. 

Asian markets slipped, while US stocks fell overnight, breaking a three-day streak of record closes for Wall Street’s key indices. 

However, on Tuesday, Indian markets extended their losing run for a third straight session, closing marginally lower amid worries over the US H-1B visa fee hike and uncertainty surrounding India-US trade talks.

Domestic Market Recap

On Tuesday, Indian indices closed in the red:

• Sensex slumped by 57.87 points (0.07%) to close at 82,102.10
• Nifty 50 moved down by 32.85 points (0.13%) to settle at 25,169.50

Gift Nifty

Gift Nifty was trading near 25,190, around 65 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Overnight Wall Street Performance

The US stock market ended lower on Tuesday, breaking a three-session string of record closing highs, after comments from Federal Reserve Chair Jerome Powell.

• The Dow Jones Industrial Average slumped by 88.76 points (0.19%) to close at 46,292.78.
• S&P 500 down by 36.83 points (0.55%), ending at 6,656.92.
• The Nasdaq Composite was trading lower by 215.50 points (0.95%), finishing at 22,573.47.

Crude Oil Prices

• Brent crude gained by 0.40% to $67.90/barrel
• US West Texas Intermediate (WTI) crude was trading 0.46% higher at $63.70/barrel

Gold Prices

Gold prices hovered near record highs as investors weighed Federal Reserve Chair Jerome Powell’s cautious remarks on potential interest rate cuts.

• Spot gold was trading steady at $3,762.05/oz
• US gold futures were trading 0.6% lower at $3,794.50

Overnight Major Global Events Driving Sentiment

1. H-1B Visa Rule: The Trump administration proposed changes to the H-1B visa selection process, giving priority to higher-skilled and better-paid foreign workers. The announcement came just days after the White House introduced a $100,000 annual fee for H-1B visas.
2. Jerome Powell Speech: US Federal Reserve Chair Jerome Powell said the central bank must balance the dual risks of rising inflation and a weakening job market when making upcoming interest rate decisions, Reuters reported. Powell noted that inflation risks remain tilted upward, while employment risks lean downward, calling it a challenging scenario.

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