Indian stock market investors should brace for a lower opening on Wednesday. Benchmark indices Sensex and Nifty 50 are likely to start the trading session in negative territory. Weak signals from global markets are putting pressure on domestic sentiment.
Tuesday's Market Performance
On Tuesday, the Indian stock market closed lower. Persistent concerns about US tariffs triggered profit booking. Sustained foreign capital outflows added to the downward pressure. Mixed global cues further dampened investor enthusiasm.
The Sensex dropped 250.48 points, settling at 83,627.69. This represents a decline of 0.30%. The Nifty 50 index fell 57.95 points to close at 25,732.30, a loss of 0.22%.
Ajit Mishra, SVP of Research at Religare Broking Ltd, commented on the market action. He noted the interplay between earnings reactions and global uncertainty. "We maintain a cautious view on the Nifty," Mishra said. "We suggest continuing with a sell-on-rise approach until the index decisively reclaims the 26,000 level."
Key Global Market Cues
Asian Markets Show Mixed Trends
Asian markets presented a mixed picture early Wednesday. Japanese indexes surged to record highs. The Nikkei 225 gained 1.25%, crossing the 54,000 mark for the first time. The Topix index rose 0.6%.
South Korea's Kospi increased 0.44%. However, the Kosdaq fell 0.37%. Hong Kong's Hang Seng index futures pointed toward a higher opening.
Gift Nifty Indicates Weak Start
The Gift Nifty was trading around the 25,757 level. This represents a discount of nearly 34 points from the Nifty futures' previous close. This trading pattern suggests a weak opening for Indian stock indices.
Wall Street Ends Lower
US stock markets closed lower on Tuesday. Financial shares led the decline. The Dow Jones Industrial Average fell 398.21 points to 49,191.99, a drop of 0.80%. The S&P 500 declined 13.53 points to 6,963.74, losing 0.19%. The Nasdaq Composite ended 24.03 points lower at 23,709.87, down 0.10%.
Several major stocks saw significant movements. Visa shares dropped 4.5%. Mastercard stock price declined 3.8%. JPMorgan share price fell 4.2%. Delta Air Lines shares eased 2.4%. On the positive side, AMD stock price jumped 6.39%. Intel shares spiked 7.33%. NVidia share price rose 0.47%.
US Inflation Data Released
US consumer prices increased in December. Higher costs for rents and food drove the rise. The Consumer Price Index rose 0.3% last month. Over the twelve months through December, the CPI advanced 2.7%. This matched November's gain.
Geopolitical Developments
US President Donald Trump announced cancellation of all meetings with Iranian officials. This move responds to the ongoing crackdown on protests in Iran. Trump addressed Iranian citizens directly on Truth Social. "Iranian Patriots, KEEP PROTESTING," he wrote. "I have cancelled all meetings with Iranian Officials until the senseless killing of protesters STOPS."
India-US Trade Talks
External Affairs Minister S Jaishankar held a phone conversation with US Secretary of State Marco Rubio. They focused on cooperation in trade, critical minerals, nuclear energy, and defence. Jaishankar described it as a "good conversation." Both agreed to remain in touch.
World Bank on India's GDP Growth
The World Bank released its latest Global Economic Prospects report. It projects India's economy to grow 6.5% in FY27. This represents an easing from the estimated 7.2% growth in the current fiscal year.
Currency and Commodity Movements
The US dollar recovered ground after the CPI data release. It approached a one-month high. The US dollar index, measuring strength against six currencies, rose 0.3% to 99.18. Against the yen, the dollar was flat at 159.025 yen. Against the Chinese yuan trading offshore in Hong Kong, it held steady at 6.9708 yuan. The euro remained flat at $1.1642. The British pound also held steady at $1.3423.
Gold prices steadied near record highs. Weaker-than-expected US inflation data supported expectations for more interest rate cuts. Geopolitical tensions remained elevated. Spot gold price rose 0.2% to $4,595.53 an ounce. Silver price increased 0.9% to $87.716.
Oil prices steadied after their biggest four-day gain in over six months. Brent crude oil gained 2.51% to $65.47 a barrel. US West Texas Intermediate crude futures fell 0.10% to $61.09.
