The Sensex and Nifty 50 are set to open higher on Tuesday, supported by optimism around a potential US-China trade deal and expectations of a US Federal Reserve rate cut, even as overnight global market cues remain mixed.

While Asian markets traded lower, Wall Street closed higher overnight, with all three major US indices marking record highs for the second consecutive session.

However, on Monday, both Sensex and Nifty ended sharply higher, gaining over 0.5% each, as investor sentiment improved across key sectors.

Domestic Market Recap

On Monday, Indian indices closed in the green:

• Sensex gained by 566.96 points (0.67%) to close at 84,778.84
• Nifty 50 moved up by 170.90 points (0.66%) to settle at 25,966.05

Gift Nifty

Gift Nifty was trading near 26,066, around 53 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Overnight Wall Street Performance

The US stock market closed higher on Monday, with Wall Street’s main indices hitting record highs for the second straight session, driven by optimism over a potential US-China trade deal and expectations of an upcoming Federal Reserve rate cut.

• The Dow Jones Industrial Average gained by 337.47 points (0.71%) to close at 47,544.59.
• S&P 500 up by 83.47 points (1.23%), ending at 6,875.16.
• The Nasdaq Composite was trading higher by 432.59 points (1.86%), finishing at 23,637.46.

Crude Oil Prices

• Brent crude slumped 0.02% to $65.61/barrel
• US West Texas Intermediate (WTI) crude was trading 0.10% higher at $61.25/barrel

Gold Prices 

• Spot gold was trading flat at $3,981.67 per ounce.
• The US gold futures fell by 0.6% at $3,996.50.

Overnight Major Global Events Driving Sentiment

1. Trump–Takaichi Meeting: US President Donald Trump met Japan’s new Prime Minister Sanae Takaichi in Tokyo to discuss trade and security issues. The meeting took place a week after Takaichi became Japan’s first female leader and pledged to strengthen the country’s military capabilities, according to Reuters.
2. China–ASEAN FTA: China and the ASEAN bloc signed an upgraded free trade agreement, which is expected to include new provisions on the digital economy, green industries, and emerging sectors, marking a step toward deeper regional economic cooperation.

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