Sensex, Nifty May Open Flat on January 7 as Gift Nifty Signals Weak Start; Global Cues Mixed

Pre-Market Update at 7:57 AM: Indian equity benchmarks Sensex and Nifty 50 are expected to open on a flat-to-weak note on Wednesday, January 7, tracking mixed cues from Asian markets and cautious global sentiment.

Gift Nifty trends indicated a negative start for domestic indices, with Gift Nifty trading at 26,214.5, down 67 points or 0.25 per cent from the previous close of Nifty futures.

In the previous session on Tuesday, January 6, both Sensex and Nifty extended losses for the second straight day amid profit booking after recent record highs, despite largely positive global cues. The Sensex slipped over 500 points Intraday to hit a low of 84,900.10, while the Nifty 50 fell to 26,124.75. By the close, the Sensex ended down 376 points, or 0.44 per cent, at 85,063.34, and the Nifty 50 declined 72 points, or 0.27 per cent, to settle at 26,178.70.

Asian markets were mixed on Wednesday as investors reacted to regional economic data. Australia’s ASX/S&P 200 rose 0.38 per cent after inflation data came in below expectations. Japan’s Nikkei 225 slipped 0.45 per cent, while the Topix declined 0.63 per cent. South Korea’s Kospi surged 1.89 per cent, even as the Kosdaq edged down 0.12 per cent. Hong Kong’s Hang Seng Index was set for a softer open, with futures at 26,685 compared with the previous close of 26,710.45.

Wall Street ended higher overnight, supported by a rally in chipmakers on renewed AI optimism, a sharp rise in Moderna shares and a record close for the Dow Jones Industrial Average. The S&P 500 gained 0.62 per cent to 6,944.82, the Nasdaq advanced 0.65 per cent to 23,547.17, and the Dow jumped 0.99 per cent to 49,462.08, nearing the 50,000 mark.

Investor sentiment in global markets remained resilient despite geopolitical tensions following the U.S. capture of Venezuelan President Nicolás Maduro. Markets appeared to focus more on the potential access of U.S. companies to Venezuela’s oil reserves.

Crude oil prices declined further on Wednesday. U.S. West Texas Intermediate crude fell 1.54 per cent to USD 56.25 per barrel after President Donald Trump said Venezuela would hand over 30 million to 50 million barrels of sanctioned oil to the United States. The commodity had already fallen more than 2 per cent in the previous session.

Gold prices held steady after three consecutive sessions of gains, trading near USD 4,500 per ounce. Investors shifted focus toward key US economic data later this week, even as geopolitical risks remained elevated.

The US dollar edged higher against major currencies. It rose 0.49 per cent against the Swiss franc and gained 0.14 per cent versus the Japanese yen. The euro weakened after softer inflation data from Europe, while market reaction to the Venezuela developments faded across currency markets.

Overall, domestic markets are likely to remain range-bound on January 7, with global cues, crude oil movements and institutional flows expected to guide intraday direction.

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