Indian Stock Market Outlook: Key Overnight Developments Impacting Sensex & Nifty 50

Global trade tensions, Wall Street sell-off, and Gift Nifty’s negative trend signal a weak opening for Indian markets.

March 5, 2025: Indian Markets Poised for a Weak Start Amid Global Uncertainty

The Indian stock market indices, Sensex and Nifty 50, are expected to open lower on Wednesday, following weak global cues and escalating trade tensions. Asian markets traded mixed, while Wall Street ended in the red overnight, with the Nasdaq nearing correction territory.

On Tuesday, the Nifty 50 extended its losing streak to the tenth consecutive session, closing 36.65 points lower at 22,082.65. The Sensex dropped 96.01 points to settle at 72,989.93.

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“Given weak global cues and lack of domestic triggers, Indian equities are expected to remain largely subdued, though continued buying interest in the broader market could provide some support,” said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services.

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7 Key Factors That Could Impact Indian Markets Today

1. Asian Markets Mixed Amid Global Uncertainty

Also Read: Nifty 50 Extends Losing Streak Amid Global Trade War; Sensex Drops Below 73K

• Japan’s Nikkei 225 declined 0.16%, while the Topix was down 0.15%.
• South Korea’s Kospi rose 1.09%, and the Kosdaq gained 1.26%.
• Hong Kong’s Hang Seng index indicated a positive opening.

2. Gift Nifty Indicates Weak Opening

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• Gift Nifty traded around 22,127, nearly 64 points lower than the previous close of Nifty futures, indicating a negative start for Indian markets.

3. Wall Street Plunges on Trade War Fears

• US stock markets closed lower due to rising trade tensions and economic concerns.
• Dow Jones fell 1.55% (-670.25 points) to 42,520.99.
• S&P 500 declined 1.22% (-71.57 points) to 5,778.15.
• Nasdaq Composite dropped 0.35% (-65.03 points) to 18,285.16.
• Notable stock declines:
  • Tesla (-4.43%), Citigroup (-6.2%), JPMorgan (-4%)
  • Ford (-2.9%), General Motors (-4.6%), Best Buy (-13.3%)

4. China’s National People’s Congress (NPC) Meeting Updates

• China kept its economic growth target at ~5%, with increased fiscal spending.
• Government to issue 1.3 trillion yuan ($179 billion) in special treasury bonds in 2025.
• Local governments allowed to issue 4.4 trillion yuan in special debt, up from 3.9 trillion yuan in 2024.

5. Japan’s Services Activity Reports Strongest Growth in 6 Months

• The Japan Services Business Activity Index rose to 53.7 in February (from 53.0 in January).
• This marks the fastest expansion in half a year.

6. Gold Prices Decline Amid Rising US Treasury Yields

• Spot gold dropped 0.1% to $2,916.09 per ounce.
• US gold futures rose 0.2% to $2,926.10 per ounce.

7. Crude Oil Prices Fall Due to Market Uncertainty

• Brent crude slipped 0.15% to $70.93 per barrel.
• West Texas Intermediate (WTI) crude declined 0.66% to $67.81 per barrel.

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Market Outlook & Analyst Take

With global markets facing pressure from economic uncertainties and trade tensions, the Indian stock market is likely to remain volatile. Lack of strong domestic catalysts could lead to subdued trading sessions, though selective buying in broader markets may offer support.

Investors should track global developments closely, especially China’s policy actions, US market trends, and commodity price movements, as these will shape short-term market directions.

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