Indian stock markets are expected to open positively on Wednesday, driven by strong global cues and optimism surrounding US-China trade talks. Asian markets saw gains, while US stock futures remained flat as investors awaited further clarity on trade negotiations and upcoming US inflation data.
On Tuesday, the Sensex ended its four-day rally, slipping by 53 points, or 0.06%, to close at 82,391.72. The Nifty 50 saw a slight increase, gaining just 1 point to settle at 25,104.25. Analysts noted that the market traded lackluster, pausing after recent gains. Sectors like IT, pharma, and energy performed well, while realty and banking stocks lagged. Broader indices also experienced a pause after outperforming in recent sessions.
In Asia, stock markets advanced. Japan’s Nikkei 225 rose by 0.25%, while the broader Topix index slipped slightly by 0.1%. South Korea’s Kospi gained 0.98%, and Australia’s S&P/ASX 200 saw a 0.44% rise, surpassing its previous record. However, Hong Kong’s Hang Seng index was expected to open lower, based on its futures.
Gift Nifty, an indicator for the Indian market, was trading at around 25,178.50, signaling a positive start for Indian stocks.
US stock futures hovered near the flatline as investors awaited developments in trade talks and the release of US inflation data for May. On Tuesday, the Dow Jones, S&P 500, and Nasdaq all recorded modest gains, marking a third consecutive day of positive movement.
Trade talks between the US and China have been tense. Both sides accused each other of backing out of agreements made earlier this year. However, there have been signs of renewed trade activity, with China approving rare earth exports and Boeing resuming aircraft deliveries to China.
The US dollar remained steady against major currencies but saw slight declines against the Japanese yen and Swiss franc in early Asian trading. Meanwhile, gold prices slipped slightly as investors anticipated positive outcomes from the trade talks, reducing demand for safe-haven assets.
Oil prices also dipped due to concerns over weak demand from China and increasing production from OPEC+. Brent crude futures dropped by 0.36%, while US West Texas Intermediate crude declined by 0.32%.
Investors continue to watch global developments, particularly the US-China trade talks, which could have a significant impact on market sentiment.
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