Indian equities are expected to open lower on Wednesday despite a global rally sparked by US President Donald Trump’s delay in imposing a 50% tariff on European Union imports.
May 28, 2025: The Gift Nifty was trading 7 points lower around 24,854, suggesting a flat start for the Sensex and Nifty, which had tumbled sharply on Tuesday. The Sensex dropped 625 points (0.76%) to 81,551.63, while the Nifty fell 175 points (0.70%) to 24,826.20 as investors booked profits in large-caps but selectively bought into mid- and small-cap stocks.
Also Read: Sensex Crashes 700 Points, Nifty Slips 200 Points Amid Weak Asian Cues
Asian Market Boost
Asian shares saw strong gains on Wednesday after Wall Street’s rally and Trump’s tariff extension. Japan’s Nikkei 225 rose 1.06%, South Korea’s Kospi added 0.65%, and Australia’s S&P/ASX 200 inched up 0.21%.
Wall Street’s Upbeat Mood
US markets surged on Tuesday as the Dow Jones jumped 740 points (1.78%) to 42,343.65, the S&P 500 climbed 2.05%, and the Nasdaq soared 2.47%.
Dollar and Bond Yields Slide
The US dollar index slipped 0.1% after Monday’s surge, making gold more attractive. Meanwhile, Japan’s ultra-long bond yields hit their lowest levels since mid-May, with the 30-year yield dropping to 2.935% and the 40-year yield to 3.43%.
Gold Prices Rebound
Gold prices regained ground, rising 0.5% to $3,314.19 an ounce in early trade as investors turned to safe-haven assets amid uncertain inflation data expected later this week.
Crude Oil Declines
Oil prices slid 1.5% on Tuesday, driven by concerns over excess supply as the US and Iran resumed talks and OPEC considers raising output. Brent crude fell to $63.73/barrel and US WTI to $60.48/barrel.
Outlook for Indian Markets
Mandar Bhojane of Choice Broking noted that markets lacked a clear trend on Tuesday, suggesting a cautious “wait-and-watch” mood among traders until a decisive breakout emerges.
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Indian stock market, Sensex, Nifty, Gift Nifty, Asian markets, gold prices, US dollar, Japan bond yields, crude oil prices