Indian benchmark indices, the BSE Sensex and NSE Nifty, are poised to open higher on Wednesday, tracking firm cues from Asian peers after United States reached a trade agreement with Japan. However, gains may be capped by ongoing uncertainty surrounding a potential U.S.-India trade agreement and investor caution ahead of key corporate earnings.

As of 8:10 AM, GIFT Nifty futures were trading 73.5 points higher at 25,157, signalling a positive start for the Indian equity market.

On Tuesday, Indian equity markets ended marginally lower, following a largely range-bound session. The Sensex slipped marginally by 13.53 points, or 0.02%, to close at 82,186.81, while the Nifty declined 29.80 points, or 0.12%, to settle at 25,060.90. Among the top performers in the Nifty50 were Eternal, HDFC Life, Titan, Hindalco, and BEL. On the flip side, Shriram Finance, Eicher Motors, Adani Ports, Tata Motors, and Jio Financial were the major laggards.

Wall Street end mixed on tariff concerns

U.S. stocks closed mixed in overnight trade as investors weighed corporate earnings and kept a close eye on progress in trade negotiations with international partners. With the August 1 deadline nearing, uncertainty around U.S. tariff policy continues to cloud market sentiment, posing concerns for both corporate and investors.

The S&P 500 ended marginally higher by 0.06% to register its 11th record close in 2025, while the Dow Jones Industrial Average added 0.40%. On the other hand, the tech-heavy Nasdaq Composite declined 0.39%, dragged down by correction in tech stocks, to close in red for the first time in seven sessions.

Nikkei surges 3% after Trump announces U.S.-Japan trade deal

Equity markets across the Asia-Pacific region saw strong buying on Wednesday, led by Japan, following reports that the United States had reached a trade agreement with Tokyo. “We just completed a massive deal with Japan, perhaps the largest deal ever made,” Trump stated on Truth Social.

U.S. President Donald Trump announced on Tuesday a “massive” deal that includes reciprocal 15% tariffs on Japanese goods exported to the U.S. As part of the agreement, Japan is also expected to invest $550 billion in the United States, according to the president.

Cheering the news, Japan’s Nikkei 225 rallied over 3%, followed by Taiwan’s Weighted Index, which added over 1%. Among others, Hong Kong’s Hang Seng, China’s Shanghai Composite, and Indonesia’s Jakarta Composite logged modest gain, rising in the range of 0.2% to 0.5%.

On the other hand, South Korea’s Kospi was down 0.2%, while Singapore’s Straits Times was marginally down. Meanwhile, Australia’s ASX 200 traded higher by 0.6% in the final hour of trade.

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