The equity benchmark indices, Sensex and Nifty 50, will likely open lower on Thursday as weak overnight global market cues weigh on sentiment. Asian markets traded mixed, while US stocks closed lower overnight, marking a second straight session of decline. 

However, on Wednesday, the Indian stock market also ended lower, extending its losing streak to a fourth consecutive session amid broad-based selling.

Domestic Market Recap

On Wednesday, Indian indices closed in the red:

• Sensex slumped by 386.47 points (0.47%) to close at 81,715.63
• Nifty 50 moved down by 112.60 points (0.45%) to settle at 25,056.90

Gift Nifty

Gift Nifty was trading near 25,065, around 47 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Overnight Wall Street Performance

The US stock market indices fell for the second consecutive session on Wednesday as investors locked in profits.

• The Dow Jones Industrial Average slumped by 171.50 points (0.37%) to close at 46,121.28.
• S&P 500 down by 18.94 points (0.28%), ending at 6,637.98.
• The Nasdaq Composite was trading lower by 75.62 points (0.33%), finishing at 22,497.86.

Crude Oil Prices

• Brent crude slumped by 0.03% to $69.29/barrel
• US West Texas Intermediate (WTI) crude was trading 0.15% lower at $64.89/barrel

Gold Prices

Gold prices rose as expectations of further US rate cuts, geopolitical tensions, and a weaker dollar boosted demand

• Spot gold was trading 0.3% higher at $3,747.59/oz
• US gold futures were trading 0.3% higher at $3,778.50

Overnight Major Global Events Driving Sentiment

1. US Home Sales: New US single-family home sales jumped 20.5% in August, reaching a seasonally adjusted annual rate of 800,000 units. The Commerce Department revised July’s pace upward to 664,000 units from 652,000 units. Reuters reported that economists had expected sales, which account for about 14% of total US home sales, to ease to 650,000 units.
2. RBI Bulletin: The Reserve Bank of India said in its monthly bulletin that GST reforms would help lower retail prices and strengthen consumption growth. According to the bulletin, these reforms will “progressively deliver a sustained positive impact by improving ease of doing business, reducing retail prices, and boosting consumption drivers.” It also noted that higher seasonal agricultural sowing should help keep food prices under control.

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