Indian benchmark indices BSE Sensex and Nifty 50 are expected to open on a muted note on Wednesday after a sharp sell-off in the previous session, with global weakness, rising gold import duty and continued foreign investor selling likely to keep traders cautious.
Early signals from GIFT Nifty indicated a flat-to-negative start, with the index trading 0.16% lower around 23,386 in early trade.
Markets will closely track developments in West Asia, crude oil prices, US dollar movement and institutional flows during the session. Investors are also expected to remain stock-specific amid ongoing Q4 earnings announcements.
In Tuesday’s session, the Nifty 50 plunged 436 points, or 1.83%, to close at 23,379.55, while the BSE Sensex tumbled 1,456 points, or 1.92%, to settle at 74,559.
Asian markets traded weak on Wednesday morning. Japan’s Nikkei 225 slipped 0.52%, South Korea’s Kospi fell over 2%, while Australia’s ASX 200 also traded in the red.
On Wall Street, the S&P 500 and Nasdaq Composite ended lower overnight, though the Dow Jones Industrial Average managed marginal gains.
Another major trigger for Dalal Street is the Centre’s decision to raise import duty on gold and silver to 10% from 6%, effective immediately. The revised customs duty structure also covers platinum and several jewellery-related imports.
Gold prices remain elevated globally, with spot gold trading around $4,732 per ounce internationally, while MCX gold futures hovered near ₹1,53,417 per 10 grams.
Crude oil prices eased slightly in early trade, with Brent crude trading near $107 per barrel and WTI crude around $101 per barrel.
Foreign institutional investors (FIIs) remained net sellers on May 12, offloading equities worth ₹1,959 crore. Domestic institutional investors (DIIs), however, continued buying support with purchases worth ₹7,990 crore.
Metal stocks remained among the few bright spots in the previous session, with the non-ferrous metals sector gaining 1.2%, while Essar Group and Vedanta Group stocks outperformed broader markets.
