Indian benchmarks Sensex and Nifty are expected to open on a flat note on Wednesday, January 7, mirroring mixed trade in the Asian markets.
Gift Nifty trends pointed to a negative opening for domestic indices, with Gift Nifty trading at 26,214.5—down 67 points, or 0.25%, from the previous close of Nifty futures.
In the previous session on Tuesday, January 6, the Sensex and Nifty 50 closed in red for the second session straight, led by profit-booking despite positive global cues.
The Sensex slipped more than 500 points, or over 0.60%, to touch an intraday low of 84,900.10, while the Nifty 50 fell 0.50% to an intraday low of 26,124.75. Both indices recovered part of the losses by the close, with the Sensex ending down 376 points, or 0.44%, at 85,063.34, and the Nifty 50 settling 72 points lower, or 0.27%, at 26,178.70.
“Markets ended Tuesday’s session on a subdued note, extending the mild corrective phase following recent record highs. The Nifty opened marginally lower and remained under pressure for most of the day, with only brief recovery attempts. Persistent selling in heavyweight stocks kept the index subdued, and it eventually closed near the 26,178.7 level, down around 0.3%. Market sentiment remained cautious amid mixed global cues and lingering concerns around geopolitical developments and global trade dynamics. Profit booking in recent outperformers, particularly in select large-cap stocks, continued to weigh on overall momentum,” said Ajit Mishra, SVP, Research, Religare Broking.
Here are the key things that changed since the stock market closed yesterday and may impact Sensex and Nifty 50 movement today:
Asian markets
Asian markets were mixed on Wednesday as investors assessed Australia’s latest inflation figures.
Australia’s benchmark ASX/S&P 200 gained 0.38% after inflation data came in below expectations. Japan’s Nikkei 225 slipped 0.45%, while the Topix declined 0.63%. In South Korea, the Kospi surged 1.89%, even as the small-cap Kosdaq inched down 0.12%.
Hong Kong’s Hang Seng Index was set for a softer start, with futures trading at 26,685 compared with the previous close of 26,710.45.
Gift Nifty today
Gift Nifty trends pointed to a negative opening for domestic indices, with Gift Nifty trading at 26,214.5—down 67 points, or 0.25%, from the previous close of Nifty futures.
Wall Street
Wall Street closed in positive territory on Tuesday, lifted by a rally in chipmakers on fresh AI enthusiasm, a strong jump in Moderna shares, and a record finish for the Dow Jones Industrial Average.
The S&P 500 advanced 0.62% to settle at 6,944.82, while the Nasdaq rose 0.65% to 23,547.17. The Dow surged 0.99% to 49,462.08, edging closer to the milestone 50,000 level.
Investor sentiment remained upbeat despite lingering geopolitical concerns following the weekend capture of Venezuelan President Nicolas Maduro by U.S. forces. Markets appeared to focus instead on the potential for U.S. companies to gain access to Venezuela’s oil reserves.
US-Venezuela conflict
On Saturday, January 3, the United States carried out a “large-scale” military strikes in Venezuela and detained President Nicolás Maduro along with his wife, transporting them to the US to face what Washington called “American justice.”
Following his disposition, the 63-year-old Maduro appeared at a federal court in New York on Monday, where he pleaded not guilty to four criminal charges.
US President Donald Trump stated that the United States would effectively assume control of Venezuela until a “safe” transition to democracy is achieved, as Maduro was brought to the US to stand trial.
Crude Oil Prices
U.S. crude prices slid more than 1% on Wednesday after President Donald Trump said Venezuela would be handing over 30 million to 50 million barrels of sanctioned oil to the United States.
U.S. West Texas Intermediate (WTI) crude dropped 88 cents, or 1.54%, to $56.25 a barrel by 0114 GMT, deepening losses after it had already fallen $1.19, or 2.04%, in the previous session.
“This Oil will be sold at its Market Price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States!” Trump said in a social media post.
Gold Prices
Gold held steady after three consecutive sessions of gains, with investors shifting focus from elevated geopolitical risks to key US economic data scheduled for release later this week.
The metal was trading close to $4,500 an ounce, having climbed over 4% across the previous three days. Following the capture of Venezuelan leader Nicolás Maduro, the White House said on Tuesday that President Donald Trump has not ruled out the use of military force to acquire Greenland. Meanwhile, China tightened export controls on goods destined for Japan with potential military applications, escalating tensions between the region’s two largest economies.
US Dollar
The U.S. dollar edged higher against its major counterparts on Tuesday, with the euro slipping after weaker inflation readings in Europe. The dollar strengthened, rising 0.49% to 0.795 versus the Swiss franc and gaining 0.14% to 156.6 against the Japanese yen.
Meanwhile, the market reaction to the surprise U.S. capture of Venezuelan President Nicolas Maduro over the weekend faded quickly across most asset classes, particularly in currencies.
(With inputs from agencies)
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