Nifty & Sensex Set for a Mildly Positive Start; Volatility Likely Through the Session

Pre-Market Update at 7:47 AM: The Indian stock market may witness volatility on Wednesday as global cues turned sharply negative overnight, while Gift Nifty indicates a mildly positive start domestically.

On Tuesday, Indian equities continued to reel under selling pressure due to global trade war concerns and weak Q3 earnings. The Sensex crashed 1,065.71 points, or 1.28 per cent, to close at 82,180.47, while the Nifty 50 fell 353 points, or 1.38 per cent, to settle at 25,232.50.

Asian markets traded lower following a sharp sell-off on Wall Street. Concerns increased after President Donald Trump threatened fresh tariffs on European nations over the Greenland dispute. Japan’s Nikkei 225 slipped 1.28 per cent, the Topix fell 1.09 per cent, South Korea’s Kospi dropped 1.09 per cent, and the Kosdaq declined 2.2 per cent. Hong Kong’s Hang Seng futures also pointed to a weaker opening.

Gift Nifty was seen trading around 25,297, offering a premium of nearly 38 points over the previous Nifty futures close, indicating a mildly positive opening for Indian benchmarks despite weak global sentiment.

Wall Street saw a major decline, with all three key indices experiencing their worst single-day fall since 10 October. The Dow Jones Industrial Average plunged 870.74 points, or 1.76 per cent, to 48,488.59. The S&P 500 dropped 143.15 points, or 2.06 per cent, to 6,796.86, while the Nasdaq Composite tumbled 561.07 points, or 2.39 per cent, to 22,954.32. Mega-cap technology stocks also declined sharply, including Nvidia (-4.38 per cent), Amazon (-3.40 per cent), Apple (-3.46 per cent), Microsoft (-1.16 per cent) and Tesla (-4.17 per cent).

Meanwhile, European Commission President Ursula von der Leyen said that India and the European Union are close to finalising a Free Trade Agreement, which some observers have termed “the mother of all deals.” India and the EU are expected to announce the conclusion of negotiations at the India–EU summit in New Delhi on 27 January 2026.

Gold and silver prices continued to hover near historical highs as investors sought safety amid global market uncertainty. Gold prices rose 0.8 per cent to a record USD 4,806 an ounce, while silver gained 0.4 per cent to USD 95.01, just below its previous peak of USD 95.87.

The US dollar weakened as tariff concerns led to broad selling in US assets. The dollar index, which tracks the greenback against six major currencies, held steady at 98.541 after a sharp 0.53 per cent decline overnight. The euro and Swiss franc strengthened, while the Japanese yen stayed at 158.19 per dollar.

Crude oil prices fell on concerns over global demand and macro headwinds. Brent crude slipped 1.31 per cent to USD 64.07 per barrel, while US West Texas Intermediate (WTI) dropped 1.21 per cent to USD 59.65 per barrel.

With volatility rising globally, Indian markets may see choppy moves through the session, even as Gift Nifty signals a slightly positive open. Investors are expected to track foreign fund activity, earnings trends, geopolitical developments and currency movements closely.

For today, Sammaan Capital will remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.