Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to open on a tepid note on Wednesday, following weak global market cues and ahead of the RBI policy.
Asian markets traded mixed, while the US stock market ended lower overnight, amid concerns over tariffs.
Investors will focus on the Reserve Bank of India’s (RBI) monetary policy decision later today. The RBI Governor Sanjay Malhotra-headed Monetary Policy Committee (MPC) is expected to hold repo rates steady amid global uncertainties, but the tone of the policy commentary will be crucial.
On Tuesday, the Indian stock market ended lower, with both the benchmark indices closing down in three of the past four trading sessions.
The Sensex declined 308.47 points, or 0.38%, to close at 80,710.25, while the Nifty 50 settled 73.20 points, or 0.30%, lower at 24,649.55.
“All eyes are now on the outcome of the upcoming RBI MPC meeting. Amid this corrective phase, select stocks across sectors are showing noticeable strength and offering buying opportunities. Participants should therefore maintain a stock-specific approach and focus on prudent position sizing,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded mixed on Wednesday, following overnight losses on Wall Street amid fresh tariff comments from US President Donald Trump. Japan’s Nikkei 225 rose 0.12% and the Topix gained 0.45%. South Korea’s Kospi fell 0.45% and Kosdaq dropped 0.57%. Hong Kong’s Hang Seng Index futures indicated a weaker opening.
Gift Nifty Today
Gift Nifty was trading around 24,685 level, a discount of nearly 23 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.
Wall Street
US stock market ended lower on Tuesday as investors weighed the impact of tariffs.
The Dow Jones Industrial Average fell 61.90 points, or 0.14%, to 44,111.74, while the S&P 500 declined 30.75 points, or 0.49%, to 6,299.19. The Nasdaq Composite closed 137.03 points, or 0.65%, lower at 20,916.55.
Nvidia share price dropped 0.97, Advanced Micro Devices shares fell 1.4%, while Microsoft stock price declined 1.47%. Yum Brands share price plunged 5.1%, Caterpillar shares 0.1%, and Marriott International stock closed up 0.2%.
Trump Tariff Threat
US President Donald Trump declared that he may “substantially” raise tariffs on India within the next 24 hours, citing New Delhi’s ongoing energy ties with Moscow as a major sticking point.
US Trade Deficit
The US trade deficit narrowed in June on a sharp drop in consumer goods imports. The overall trade gap narrowed 16.0% in June to $60.2 billion. Exports of goods and services totaled $277.3 billion, down from more than $278 billion in May, while total imports were $337.5 billion, down from $350.3 billion.
US Services PMI
US services sector activity unexpectedly flatlined in July. The Institute for Supply Management (ISM) said its non-manufacturing purchasing managers index (PMI) slipped to 50.1 last month from 50.8 in June. Economists polled by Reuters had forecast the services PMI would rise to 51.5.
Gold Prices
Gold prices rose to a near two-week high on Tuesday, supported by growing expectations of US interest rate cuts. Spot gold price gained 0.2% to $3,380.20 per ounce, after hitting its highest level since July 24 earlier. US gold futures settled 0.2% higher at $3,434.7.
Crude Oil Prices
Crude oil prices traded higher. Brent crude oil rose 0.43% to $67.93 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 0.37% to $65.40.
(With inputs from Reuters)
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