India’s benchmark indices, Sensex and Nifty 50, are likely to open lower on Thursday, tracking overnight global market losses after the US Federal Reserve’s policy decision. Investors are also focusing on the meeting between US President Donald Trump and Chinese President Xi Jinping scheduled for later today.

Asian markets traded lower, while Wall Street ended mixed overnight. The Nasdaq hit another record closing high after the Fed announced a 25 bps rate cut.

However, market expectations for another quarter-point cut in December have declined to about 68%.

Furthermore, on Wednesday, Indian equities closed higher, with the Nifty 50 ending above the 26,000 mark.

Domestic Market Recap

On Wednesday, Indian indices closed in the green:

• Sensex gained by 368.97 points (0.44%) to close at 84,997.13
• Nifty 50 moved up by 117.70 points (0.45%) to settle at 26,053.90

Gift Nifty

Gift Nifty was trading near 26,160, around 78 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Overnight Wall Street Performance

The US stock market closed mixed on Wednesday after the Federal Reserve announced an interest rate cut, while Fed Chair Jerome Powell signalled that another rate reduction in December is not guaranteed.

• The Dow Jones Industrial Average slumped by 74.37 points (0.16%) to close at 47,632.00.
• S&P 500 down by 0.30 points (0.0%), ending at 6,890.39.
• The Nasdaq Composite was trading higher by 130.98 points (0.55%), finishing at 23,958.47.

Crude Oil Prices

• Brent crude slumped 0.02% to $64.91/barrel
• US West Texas Intermediate (WTI) crude was trading 0.23% lower at $60.36/barrel

Gold Prices 

• Spot gold was trading 0.4% higher at $3,942.97 per ounce.
• The US gold futures slumped by 1.1% to $3,955.

Overnight Major Global Events Driving Sentiment

1. US Fed Rate Cut: The Jerome Powell-led Federal Open Market Committee (FOMC) of the US Federal Reserve reduced the key benchmark interest rate by 25 basis points to a range of 3.75%–4.00% in its October monetary policy meeting. Powell stated that another rate cut is not a “foregone conclusion,” emphasising that the economic situation remains fluid.

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