GIFT NIFTY indicates gap down opening; global cues remain positive; Here's all you need to know

GIFT NIFTY indicates a gap-down opening for Indian markets on Wednesday as tensions rise between India and Pakistan, after India conducted strikes in Pakistan on 9 destinations. The Ministry of Defence reported Indian armed forces carried out a precision strike in Pakistan on terror outfits. On the other hand, the global market cues remain positive as the US and China agree on trade talks after the tariff escalation.

The US markets closed in the red on Tuesday with up to 1% losses on Dow Jones, NASDAQ and S&P 500. However, the US futures are currently trading with gains of more than 1% across the board as the US and China agree to conduct trade talks as early as this week. According to media reports, US Treasury Secretary Scott Besentt and trade representative Jamieson Greer would meet Chinese counterparts in Switzerland to discuss trade matters.

Crude oil prices advanced on Wednesday morning as reports of trade talks between the US and China eased the pressure on the oil prices. The WTI crude oil prices jumped 3.5% on Tuesday, and Brent crude oil prices traded above $62.5 per barrel.

Some of the key factors to be watched:

India and the UK clinches a landmark trade deal: India and the UK have finalized a landmark trade agreement aimed at doubling trade to $120 billion by 2030. The deal eliminates tariffs on a significant number of Indian goods entering the UK, including labour-intensive products, while reducing tariffs on UK’s exports like whisky and cars to India.

Bilateral trade talks between India and US moving progressively: Piyush Goyal, the Union Commerce and Industry Minister, said that the Bilateral Trade Agreement (BTA) with the United States is moving progressively in the right direction.

The Chinese central bank has announced a rate cut to support the ailing economy as it grapples with the impact of a trade war with the US. Following the positive cues, Asian markets traded in green with Hong Kong and Chinese indices rallying up to 1%. Meanwhile, Japanese and Korean indices traded marginally higher on Wednesday morning.