The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open flat to slightly lower on Tuesday, mirroring the mixed cues from overnight global markets.

Asian markets traded lower, while Wall Street ended mixed overnight, with gains in technology stocks boosting the Nasdaq and S&P 500.

However, on Monday, the Indian market closed a volatile session nearly flat but with a mildly positive bias.

Domestic Market Recap

On Monday, Indian indices closed in the green:

• Sensex gained by 39.78 points (0.05%) to close at 83,978.49
• Nifty 50 moved up by 41.25 points (0.16%) to settle at 25,763.35

Gift Nifty

Gift Nifty was trading near 25,889, around 30 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 mixed on Monday, as gains in technology stocks lifted the S&P 500 and the Nasdaq, while other sectors lagged behind.

• The Dow Jones Industrial Average slumped by 226.19 points (0.48%) to close at 47,336.68.
• S&P 500 gained by 11.77 points (0.17%), ending at 6,851.97.
• The Nasdaq Composite was higher by 109.77 points (0.46%), finishing at 23,834.72.

Gold Prices 

Gold prices held steady below $4,000 an ounce, as traders assessed remarks from Federal Reserve officials for hints about the central bank’s next interest rate move. Spot gold remained nearly unchanged at $3,996.32 per ounce.

Overnight Major Global Events Driving Sentiment

1. Amazon–OpenAI Deal: Amazon has entered into a $38 billion agreement with OpenAI, allowing the ChatGPT developer to operate its artificial intelligence systems on Amazon’s US-based data centres. Under this partnership, OpenAI will leverage Amazon Web Services (AWS) to access “hundreds of thousands” of Nvidia’s advanced AI chips, significantly boosting its computing power and scalability.
2. US PMI: The US manufacturing sector contracted for the eighth consecutive month in October, according to data from the Institute for Supply Management (ISM). The manufacturing PMI declined to 48.7 from 49.1 in September, signalling continued weakness in factory activity. Despite the drop, the index remained above 42.3, which the ISM associates with long-term economic expansion. 
3. Japan PMI: Japan’s manufacturing activity weakened sharply in October, marking its fastest decline in 19 months. The S&P Global Japan Manufacturing PMI fell to 48.2 from 48.5 in September, missing the preliminary estimate of 49.3 and hitting its lowest point since March 2024, as factory output and new orders continued to slide.

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