Five major factors that affected the Indian stock market overnight were the Gift Nifty, worldwide trends, and tariff concerns.

The Indian stock market anticipated a strong start, with the GIFT Nifty rising 185.5 points. Amid worries over tariffs, Asian stocks performed inconsistently. Despite tariff announcements, US markets hit all-time highs, and the dollar appreciated.

Indian stock market: Amid conflicting global indications, it is expected that the domestic market key indices would open favorably on Wednesday, with GIFT Nifty up more than 185.5 points from Tuesday's closing on Nifty Futures.

Following turmoil in emerging markets sparked by Donald Trump's tariff plan during the previous day, Asian stocks moved within a limited range. With stocks rising in Sydney and falling in Tokyo and Seoul, the MSCI Asia Pacific Index increased by 0.1%.

Tuesday's largely stable Indian market indices broke the rising trend of the previous two days. The Sensex fell 105.79 points, or 0.13%, to settle at 80,004.06 points. The Nifty 50, meanwhile, dropped 27.40 points, or 0.11%, to close at 24,194.50 points.

With indices rising around 4% over the last two days, the latest rally—aside from Tuesday's session—has assisted in partially recouping the losses suffered recently.

After the previous strong advance, the domestic market paused, but the overall market stayed flexible. After a lengthy period of selling, FIIs have switched to net buying, and MSCI is rebalancing. The administration will concentrate on carrying out and completing the budget plans after the state elections in 2024 are done, according to Vinod Nair, Head of Research at Geojit Financial Services.

The following are today's major global market indicators for the Sensex and Nifty 50:

Nifty Gifty
Despite conflicting signals from international markets, the domestic market benchmark indices are anticipated to open favorably on Wednesday, with the GIFT Nifty jumping more than 185.5 points from Tuesday's closing on Nifty Futures.

Markets in Asia
Rajeev De Mello, a global macro portfolio manager at Gama Asset Management, told Bloomberg that Asian stocks are having trouble. For a variety of reasons, investors think that the quick announcement of duties on China—mostly for fentanyl exports to the US—may be the beginning of the imposition of larger tariffs. Asian markets are probably going to continue to be under pressure from this persistent uncertainty.

Even though Donald Trump's latest remarks regarding tariffs only slightly affected Wall Street, US stocks hit all-time highs on Tuesday. The market was mostly untouched by these tariffs, despite the fact that they might have upset the world economy if they were put into effect.

The S&P 500 increased by 0.6%, breaking the record it set a few weeks earlier. Only one day after its last peak, the Dow Jones Industrial Average rose 123 points, or 0.3%, to set a new record. In the meantime, Microsoft and other significant tech firms drove a 0.6% advance in the Nasdaq composite.

On the other hand, an AP news article states that stock markets overseas largely fell after President-elect Trump declared his intention to put substantial additional tariffs on China, Canada, and Mexico after he assumes office.

The US dollar

Following President-elect Donald Trump's announcement of extra tariffs on China, Mexico, and Canada, the dollar saw gains while stock prices saw minor declines. According to a Bloomberg story, this development has sparked conversations about the ramifications of his "America First" agenda.

The Chinese offshore yuan hit a four-month low, and the Bloomberg Dollar Spot Index first increased by as much as 0.7% before correcting. Additionally, there were declines of more than 1% in the Canadian dollar and the Mexican peso. It is important to note, though, that US stock futures started to level out following previous swings, suggesting that the market may be resilient.

Crude Petroleum
As markets assessed the possible ramifications of a ceasefire agreement between Israel and Hezbollah and prepared for the approaching OPEC summit this Sunday, oil prices displayed stability in early trade on Wednesday, according to a Reuters report.

By 0114 GMT, Brent crude futures had dropped 2 cents to end at $72.79 a barrel, a modest fall. At $68.73 per barrel, U.S. West Texas Intermediate oil futures were down 4 cents, or 0.1%, as well.

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