The Indian stock market may open lower today (Wednesday), as global signals remain negative. Here’s a simple breakdown of the key things that changed overnight and may impact Sensex and Nifty 50:
1. Global Cues Look Weak
- Asian stock markets fell after US President Donald Trump announced big new tariffs (import taxes) on certain countries, including a 104% tax on China.
- This has made investors nervous and reduced their interest in taking risks.
- Japan’s Nikkei dropped 3.14%, South Korea’s Kospi fell 0.18%, and other major Asian markets also declined.
2. RBI Policy Decision Today
- The Reserve Bank of India (RBI) will announce its first monetary policy of FY26 today.
- The RBI’s Monetary Policy Committee (MPC), led by Governor Sanjay Malhotra, is expected to cut the repo rate due to slowing growth and lower inflation.
Read More: Chinese Premier Responds to Trump’s 104% Tariffs: ‘China Is Ready to Handle It’
3. Market Recovered on Tuesday
- On Tuesday, the stock market bounced back sharply after Monday’s big fall.
- Sensex gained 1,089 points and closed at 74,227, while Nifty 50 rose 374 points to end at 22,535.
- Experts said hopes that countries would find ways to deal with US tariffs helped lift investor sentiment.
- Also, India’s consumption-driven economy may not be hit as hard as others by the US tariff changes.
4. Gift Nifty Indicates Weak Start
- Gift Nifty was trading at 22,396, which is 234 points lower than Nifty futures’ last close.
- This suggests Indian markets may open in the red today.
5. US Stock Markets Fall Sharply
- The US markets ended in the red, wiping out earlier gains.
- The S&P 500 fell below 5,000 for the first time in almost a year, losing over $5.8 trillion in value over four days.
- Dow Jones dropped 320 points, Nasdaq lost over 335 points.
- Big tech stocks like Tesla (-4.9%), Apple (-4.98%), and Intel (-7.36%) saw heavy losses.
Also Read: Trade Wars + Recession = Oil Crash? Goldman Warns Market Shift
Other Key Updates:
Trump’s Pharma Tariff Plans
- Donald Trump also said the US will soon place a new tariff on pharmaceutical imports to encourage drug companies to manufacture in the US.
Crude Oil Prices Drop
- Oil prices dropped sharply to four-year lows, as the ongoing trade war could reduce global energy demand.
- Brent Crude fell 2.9% to $61 per barrel, and WTI Crude dropped 3.44% to $57.53.
In summary, due to global uncertainties, new US tariffs, and falling oil prices, Indian markets may see a slow start today. All eyes are also on the RBI’s policy decision, which could offer some direction.
