The Indian equity benchmarks, Sensex and Nifty 50, are likely to open lower on Thursday due to persistent India-Pakistan tensions and mixed global signals.Asian markets showed a mixed trend, while Wall Street closed higher following the US Federal Reserve’s policy announcement.

Despite escalating geopolitical tensions, Indian markets closed higher on Wednesday, reflecting investor resilience.

Domestic Market Recap

On Wednesday, Indian indices closed in the green despite rising border tensions:

• Sensex gained by 105.71 points (0.13%) to close at 80,746.78
• Nifty 50 moved higher by 34.80 points (0.14%) to settle at 24,414.40

Gift Nifty

Gift Nifty was trading near 24,420, around 41 points lower than the previous Nifty futures close, hinting at a weak start for Indian markets.

Wall Street Performance

US indices saw a broad decline on Tuesday:

• Dow Jones: 284.97 pts (0.70%) to 41,113.97
• S&P 500: 24.37 pts (0.43%) to 5,631.28
• Nasdaq: 48.50 pts (0.27%) to 17,738.16

Gold Prices

Gold gained following the US Federal Reserve issued a warning of growing inflation and labour market risks, fueling economic uncertainties. 

• Spot gold gained by 0.6% to $3,384.99/oz
• US gold futures were holding steady at $3,392/oz

Crude Oil Prices

Oil prices held steady after slipping over $1 in the previous session:

• Brent crude futures were unchanged at $61.12/barrel
• WTI crude: +0.1% to $58.12/barrel

Major Global Events Driving Sentiment

1. US Fed Policy: The US Federal Reserve kept benchmark interest rates unchanged at 4.25%–4.5%. Fed Chair Jerome Powell noted that while uncertainty has dampened public and business sentiment, the economy remains fundamentally strong. He also stated that rate cuts could be considered if justified by incoming economic data, but the Fed will wait for greater clarity before adjusting policy.
2. US-China Trade Talks: US President Donald Trump stated that he is not willing to reduce tariffs on China in advance, signalling a firm stance and potentially limiting progress in upcoming trade negotiations with Beijing.
3. India-Pakistan Conflict: Pakistan Prime Minister Shehbaz Sharif vowed retaliation after Indian armed forces targeted and dismantled nine terrorist camps in Pakistan and Pakistan-occupied Kashmir under ‘Operation Sindoor’. He asserted that Pakistan’s military is fully capable of responding and will take revenge.

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