The equity market benchmark indices, Sensex and Nifty 50, may open flat on Tuesday as mixed overnight global cues weigh on sentiment. Asian markets traded mixed, while the US stock market closed higher overnight, led by gains in technology stocks. 

However, on Monday, the Indian stock market closed lower, marking its seventh straight session of losses.

Domestic Market Recap

On Monday, Indian indices closed in the red:

• Sensex slumped by 61.52 points (0.08%) to close at 80,364.94
• Nifty 50 moved down by 19.80 points (0.08%) to settle at 24,634.90

Gift Nifty

Gift Nifty was trading near 24,692, around 7 points higher than the previous Nifty futures close, hinting at a lacklustre start for Indian markets.

Overnight Wall Street Performance

The US stocks closed higher on Monday, which was led by a surge in the technology sector. 

• The Dow Jones Industrial Average surged by 68.78 points (0.15%) to close at 46,316.07.
• S&P 500 up by 17.51 points (0.26%), ending at 6,661.21.
• The Nasdaq Composite was trading higher by 107.09 points (0.48%), finishing at 22,591.15.

Crude Oil Prices

• Brent crude slumped by 0.66% to $67.52/barrel
• US West Texas Intermediate (WTI) crude was trading 0.60% lower at $63.07/barrel

Overnight Major Global Events Driving Sentiment

1. Trump Tariffs: US President Donald Trump imposed a 10% tariff on lumber imports and a 25% tariff on vanities, kitchen cabinets, and upholstered wooden products, effective October 14. From January 1, the US will raise tariffs to 30% on upholstered wooden products and to 50% on kitchen cabinets and vanities imported from countries that fail to reach an agreement.
2. US Government Shutdown: US Vice President JD Vance predicted a government shutdown, saying, “I think we’re headed to a shutdown.” President Donald Trump and Democratic leaders made little progress during a White House meeting aimed at preventing it.
3. US Fed Officials: St. Louis Federal Reserve President Alberto Musalem signalled openness to further interest rate cuts but emphasised caution, stressing the need to keep rates high enough to curb inflation that remains about one percentage point above the Fed’s 2% target. New York Fed President John Williams said weakness in the labour market drove his support for rate cuts at the most recent Fed meeting. 
4. China PMI: China’s manufacturing activity contracted for the sixth straight month in September. The official purchasing managers’ index (PMI) climbed to 49.8 from 49.4 in August, staying below the 50-point growth threshold but beating Reuters’ forecast of 49.6.
5. Bank of Japan: Bank of Japan board members debated whether to raise interest rates in the near term, with one member suggesting that the timing may now be appropriate, according to the summary of opinions from the September policy meeting.

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