Indian equity indices are looking to shake off Tuesday’s sluggish close, as overnight signals from Wall Street, Tokyo, and Singapore bring a fresh wave of optimism.
Gift Nifty futures are flashing early morning confidence, hinting at a firmer open for the domestic market. The uptick comes as Japan and the U.S. ink a trade pact now being touted as the “biggest ever,” while the S&P 500 slipped into record territory. But sentiment remains fragile on Dalal Street, where mixed earnings and global ambiguity continue to keep bulls and bears on edge.
Gift Nifty Points to Bright Start, but Traders Remain Guarded
Gift Nifty was seen trading near 25,162 — about 68 points higher than Nifty futures’ previous close. That’s typically read as a bullish indicator for the broader market at open.
Yet, many traders are still treading carefully.
Some say the optimism feels a bit forced. After all, Tuesday’s session was a snoozer. The Sensex dipped just 13.53 points, and Nifty shed nearly 30 — no fireworks, no collapse, just fatigue.
Ajit Mishra from Religare Broking summed it up without mincing words: “There’s no clear direction. Traders are advised to hedge and pick stocks based on earnings strength.”
That’s code for “don’t get carried away.”
S&P 500 Hits Record High But Wall Street Isn’t All Smiles
Across the Atlantic, the U.S. market had its own split-screen moment.
The S&P 500 managed to notch another record close, largely powered by tech and healthcare. But the Nasdaq wasn’t as cheerful, and the Dow Jones drifted aimlessly.
That kind of divergence is throwing off short-term trend watchers.
• S&P 500 closed up 0.28%
• Nasdaq Composite ended slightly lower at 0.12%
• Dow Jones Industrial Average eked out a 0.05% gain
To be fair, Wall Street is juggling a cocktail of earnings, rate cut chatter, and global trade headlines. And that brings us to Tokyo.
Nikkei’s Rally Brings Energy, Thanks to Japan’s Big Trade Win
Japan’s Nikkei 225 made some real noise.
It jumped sharply after Prime Minister Fumio Kishida and U.S. President Donald Trump unveiled a $550 billion trade deal — now being pitched as the largest bilateral pact between the two economies.
Japanese exporters and tech firms were the biggest winners, feeding into broader Asia-Pacific optimism. Naturally, Indian markets took notice.
Here’s how key Asia-Pacific indices moved overnight:
| Index | Change (%) | Notes |
|---|---|---|
| Nikkei 225 | +1.6% | Surge after US-Japan trade deal |
| Hang Seng | +0.8% | Gains led by tech and property stocks |
| Kospi (South Korea) | +0.4% | Helped by chipmaker earnings |
| Straits Times | +0.5% | Regional tailwind, banks lifted sentiment |
And it’s not just numbers. The optics of the U.S. and Japan strengthening economic ties send a subtle message to China — which, let’s not forget, still plays a major role in global supply chain sentiment.
Flat Tuesday Close in India Reflects Market’s Identity Crisis
Back home, Tuesday’s close was a picture of indecision. Nifty lost 0.12%, Sensex nearly flat. It wasn’t a sell-off — just a market stuck in thought.
There’s an odd mismatch between local and global cues lately. Traders are watching global trends like hawks but are hesitant to make big moves without clarity on Indian earnings or policy signals.
One market veteran put it like this: “It’s like we’re seeing green lights abroad but waiting for our own signal to turn.”
That tension keeps volume thin and moves choppy.
Just one sentence here. Because sometimes, that’s all you need.
Eyes on Earnings as Mixed Results Confuse Investors
Corporate earnings are another wildcard.
Some companies are beating the Street, others falling short — and none of it seems to be building a coherent theme. That makes stock picking a game of hit or miss.
Here are a few trends playing out:
• Banks are mostly holding up, thanks to loan growth and margin stability
• IT firms are underwhelming — weak guidance is spoiling the mood
• Consumer stocks are all over the place, reflecting patchy demand revival
Investors are asking: Is this a transition phase or a structural slowdown?
Nobody knows for sure. And that’s fueling volatility in mid-caps and small-caps especially, where conviction is weakest.
What to Watch Today: Oil, Rupee, and US Futures
Looking ahead to Wednesday’s trade, several levers could tug the market in either direction.
Oil prices are firming up again. That could spell trouble for inflation-sensitive sectors if it continues.
The Indian rupee has been steady but will react to both dollar strength and crude dynamics.
US stock futures are leaning mildly green as of early Asia hours — another possible tailwind.
So here’s what traders are keeping tabs on today:
• Crude oil near $83 a barrel – may hit OMC stocks
• USD-INR hovering around 83.14 – stable but watch global currency moves
• Gift Nifty suggests positive open, but intra-day volatility likely
One trader joked: “It’s like we’re watching 10 screens and still can’t make a confident call.”
