The Sensex and Nifty 50 are likely to open flat to slightly higher on Tuesday, taking cues from a broad rally in overnight global markets.

Asian markets traded higher, while the US stock market surged overnight on rising optimism that the US government shutdown may end soon.

However, on Monday, Indian equities closed higher, breaking a three-day losing streak, as investors bought into select large-cap stocks.

Domestic Market Recap

On Monday, Indian indices closed in the green:

• Sensex gained by 319.07 points (0.38%) to close at 83,535.35
• Nifty 50 moved up by 82.05 points (0.32%) to settle at 25,574.35

Gift Nifty

Gift Nifty was trading near 25,709, around 15 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 sharply higher on Monday, as strong rallies in major AI-related heavyweight stocks drove the gains amid growing optimism over progress to end the record-long government shutdown.

• The Dow Jones Industrial Average gained by 381.53 points (0.81%) to close at 47,368.63.
• S&P 500 soared by 103.63 points (1.54%), ending at 6,832.43.
• The Nasdaq Composite was higher by 522.64 points (2.27%), finishing at 23,527.17.

Gold Prices 

Gold prices rose further to a near three-week high, as increasing expectations of another Federal Reserve rate cut in December boosted demand for the safe-haven metal.

• Spot gold was trading 0.4% higher at $4,131.83 per ounce.
• The US gold futures soared by 0.4% to $4,138.70.

Crude Oil Prices

• Brent crude slumped 0.19% to $63.94/barrel
• US West Texas Intermediate (WTI) crude was trading 0.23% lower at $60.01/barrel

Overnight Major Global Events Driving Sentiment

1. India–US Trade Deal: US President Donald Trump said he expects to lower tariffs on Indian goods, indicating that Washington and New Delhi are “pretty close” to finalising a trade agreement, Bloomberg reported. Trump added, “We’re getting a fair deal,” and noted that both sides are nearing an agreement “that’s good for everybody.”
2. US Fed Governor: US Federal Reserve Governor Stephen Miran said that better-than-expected inflation data and ongoing weakness in the labour market support the case for a third straight interest-rate cut in December. He told CNBC that a half-point cut next month remains “appropriate” and emphasised that, at a minimum, the Fed should reduce rates by another 25 basis points.

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