Indian Markets Eye Flat Opening Amid Mixed Global Cues

Indian equities extended their rally for the fourth consecutive session on Tuesday, demonstrating resilience amid fluctuating global conditions. The Sensex gained 136.63 points (0.17%) to close at 81,926.75, while the Nifty 50 moved up by 30.65 points (0.12%) to settle at 25,108.30. This sustained upward movement occurred despite mixed signals from international markets, highlighting the domestic market’s independent strength.

The Gift Nifty, trading near 25,212—approximately 13 points higher than the previous Nifty futures close—suggests a marginally positive start for Indian markets. However, this optimism is tempered by overnight developments in US markets, where investors booked profits after an extended rally. The contrasting performance between Asian and US markets creates a complex backdrop for Indian traders navigating opening positions.

Wall Street’s Tuesday session marked a significant shift as the S&P 500 ended its seven-day winning streak with a 0.38% decline, dropping 25.69 points to close at 6,714.59. The Dow Jones Industrial Average slumped by 91.99 points (0.20%) to finish at 46,602.98, while the technology-heavy Nasdaq Composite experienced the steepest decline, falling 153.30 points (0.67%) to 22,788.36. This profit-taking behavior among US investors reflects growing caution after sustained gains.

Simultaneously, gold prices surged to unprecedented levels, with spot gold trading 0.3% higher at $3,995.14 per ounce and US gold futures increasing by 0.3% to $4,016.30. The breach of the psychological $4,000 per ounce barrier represents a significant milestone for the precious metal, often seen as a safe-haven asset during periods of market uncertainty. This gold rally coincides with the equity market pullback, suggesting a potential rotation in investor preferences.

Significant geopolitical developments are influencing market sentiment across global exchanges. Commerce and Industry Minister Piyush Goyal confirmed that India and the United States are actively continuing discussions on the proposed bilateral trade agreement, with both nations working toward meeting the November 2025 deadline. This ongoing negotiation represents a crucial economic partnership that could reshape trade flows between the world’s largest and fifth-largest economies.

Meanwhile, UK Prime Minister Keir Starmer began a two-day visit to India accompanied by over a hundred leaders from business, culture, and education sectors. This diplomatic mission aims to strengthen ties and promote the recently signed trade deal between the two nations. The timing of this visit, coinciding with market fluctuations, underscores the interconnected nature of international relations and financial markets.

In Asia, Japan’s economic challenges continue as real wages declined for the eighth consecutive month in August, dropping 1.4% year-on-year. This persistent erosion of household purchasing power, driven by ongoing inflation, presents concerns for consumer-driven economic recovery in the world’s third-largest economy. These wage dynamics contrast with the equity market performances across the region, creating a complex economic landscape for investors to navigate.