The mood in global markets remains uncertain as investors eye the fine print of the US-China trade agreement. Despite positive headlines, the lack of clarity over the terms has made investors cautious. Some believe US President Donald Trump may have made more concessions than anticipated, which could explain why American markets have failed to maintain the bullish streak of the past week.
A more pressing concern is whether the US-China deal includes provisions that might encourage American capital to shift toward China — a move that could pull foreign investments away from India. This lingering anxiety is evident in recent trading behaviour, although markets are expected to open on an optimistic note.
In the derivatives segment, Gift Nifty closed at 24,782 on Wednesday night, climbed to 24,786.5 in the morning, briefly dipped to 24,744, and then recovered slightly. This signals that Indian markets may begin the day in positive territory.
European markets ended lower on Wednesday. Shares of French train maker Alstom slumped 17% following weak annual results, while British luxury fashion brand Burberry surged 17% on the back of a cost-cutting strategy that pleased investors.
On Wall Street, Nasdaq ended higher with support from tech giant Nvidia, which benefited from optimism around the US-China trade deal and Trump's recent visits to Saudi Arabia and Qatar. The Dow Jones closed marginally lower, while the S&P 500 made slight gains. Nvidia, which had lost ground earlier in the year due to Trump’s export policy, rebounded strongly, with its shares rising 16% in five days. The easing of chip export restrictions and a fresh AI partnership with Saudi Arabia are being seen as significant boosts.
Trump's visit to Qatar also triggered gains for aerospace giants Boeing and GE Aerospace. Qatar Airways is set to purchase 200 Boeing aircraft, with GE supplying 400 engines.
Wednesday’s session reflected a lack of strong directional conviction. Many investors remain concerned that foreign funds currently flowing into India may shift back to China if trade ties strengthen. Speculation is rife that the US is also negotiating to ease investment restrictions, which could further sway global capital flows.
Nonetheless, defence stocks such as Cochin Shipyard extended gains. The Nifty closed 88.55 points (0.36%) higher at 24,666.90, while the Sensex rose 182.34 points (0.22%) to 81,330.56. Bank Nifty lost 139.55 points (0.25%) to settle at 54,801.30. The Midcap 100 and Smallcap 100 outperformed, gaining 1.11% and 1.44% respectively.
Market breadth was firmly positive — on the BSE, 2860 stocks advanced while 1121 declined. On the NSE, 2183 stocks closed in the green and 694 in red. Notably, 61 stocks hit 52-week highs, while just 13 fell to new lows. Around 200 stocks touched upper circuit limits, whereas 30 hit lower circuits.
Foreign institutional investors bought equities worth ₹931.80 crore on Wednesday, while domestic funds added ₹316.31 crore to their portfolios.
If the upward trend continues, the Nifty may target the 24,800–25,000 range. Key support is seen around 24,560 and 24,430, with resistance expected near 24,750 and 24,900.
Gold prices tumbled to a five-week low as hopes for an immediate US rate cut dimmed. Some now expect the Federal Reserve to delay easing until September. There are even forecasts that gold could drop towards $3000 per ounce.
Gold closed $73.10 lower at $3178.10 an ounce on Wednesday, though it rebounded slightly to $3186 this morning. In Kerala, gold fell by ₹400 to ₹70,440 per sovereign on Wednesday.
Silver dropped to $32.25 an ounce. Base metals were mixed — copper rose 1.21% to $9649.35 per tonne, aluminium climbed 1.47%, while tin, zinc, nickel, and lead also gained moderately.
Internationally, rubber prices rose 0.68% to 177.20 cents per kg. Cocoa surged 2.09% to $9891.31, while coffee slid 2.21%. Palm oil edged up by 0.82%.
The dollar index showed volatility, dipping from 101.00 to 100.27 before recovering to close at 101.04. It hovered around 100.86 this morning.
The euro traded at $1.1186, the British pound at $1.3264, and the Japanese yen weakened to 146.46 per dollar.
The Indian rupee started strong on Wednesday but ended flat, closing at ₹85.27 per dollar, down six paise. The Chinese yuan stood firm at 7.21 per dollar.
Oil prices dipped sharply — a reversal of gains seen earlier when recession fears eased. A surprise build-up in US crude inventory led to a 2.5% drop in prices.
Brent crude ended Wednesday 1% lower at $66.09 per barrel and fell further to $65.07 in early trade. WTI stood at $62.08 and Murban crude at $64.67.