8 key things that changed for market overnight - Gift Nifty, Trump Tariffs to Nvidia Q2 results

By Admin

28 Aug, 2025

The Indian stock market is set for a cautious start today as global developments, US tariff measures, and corporate earnings weigh on investor sentiment. With Asian markets trading mixed and US indices ending higher overnight, here are the eight key factors that will drive the Sensex and Nifty 50 on Thursday.

1. Gift Nifty Signals Weak Start

Gift Nifty was trading around 24,649, nearly 82 points lower than the Nifty futures’ previous close, indicating a negative start for domestic indices. This comes after the Indian market remained shut on August 26 (Ganesh Chaturthi) and after heavy selling on Tuesday, which wiped out nearly ₹6 lakh crore of investor wealth.

2. Previous Session Recap

On Tuesday, the Sensex crashed 849.37 points (1.04%) to close at 80,786.54, while the Nifty 50 fell 255.70 points (1.02%) to settle at 24,712.05. Broader selling across sectors led to the decline, with export-oriented companies facing heavy pressure.

3. US Tariffs on Indian Exports

A major concern for Indian equities is the implementation of additional 25% US tariffs on Indian exports, which took effect on August 27. The move, signed by President Donald Trump, takes the cumulative tariff burden to 50%. The decision comes as a retaliatory measure to India’s crude oil imports from Russia. Export-driven sectors are expected to remain under pressure in the near term.

4. Asian Market Trends

Asian equities traded mixed on Thursday.

• Nikkei 225: +0.20%
  
  

• Topix: +0.11%
  
  

• Kospi: +0.29%
  
  

• Kosdaq: –0.34%
  
  

• Hang Seng futures: Indicate a lower opening
  
  

These movements suggest limited support for Indian markets from regional peers.

5. Wall Street Performance

The US stock market closed higher overnight, with the S&P 500 touching an intra-day record high.

• Dow Jones: +0.31% (45,557.67)
  
  

• S&P 500: +0.22% (6,480.05)
  
  

• Nasdaq: +0.18% (21,583.83)
  
  

In stocks, Nvidia rose 0.1% but slipped 3.14% in extended trading after its Q2 results. Microsoft (+0.94%), Apple (+0.94%), and Tesla (–0.59%) saw mixed action. MongoDB surged 35%, while JM Smucker declined 5%.

6. Nvidia Q2 Earnings

Nvidia reported Q2 revenue of $46.7 billion, up 56% year-on-year and slightly above Wall Street’s expectations. Adjusted profit stood at $26.4 billion ($1.05/share), beating estimates. The company guided Q3 revenue at $54 billion (±2%), higher than forecasts. However, Nvidia disclosed a $4 billion decline in H20 processor sales to China, dragging shares lower in after-market trade.

7. US Federal Reserve Outlook & Dollar Moves

New York Fed President John Williams signaled that interest rates may fall, depending on upcoming economic data ahead of the September Fed meeting. This drove the US dollar index lower (98.135) as bets on a rate cut increased. The euro rose to $1.1646, pound to $1.3504, while the dollar gained against the yen (147.47) but slipped against the yuan (7.1491 offshore).

8. Crude Oil Prices

Crude oil prices edged lower in early trading after a sharp rise in the previous session.

• Brent crude: –0.53% at $67.69
  
  

• WTI crude: –0.59% at $63.77
  
  

Lower crude prices may offer some relief to India, a major oil importer, amid rising trade tensions.

Outlook for Investors

Market experts suggest that export-driven sectors may remain under selling pressure, while domestic demand-focused sectors like FMCG and consumer discretionary could offer relative stability. Investors should also track foreign fund flows, global market cues, and potential policy steps from the Indian government to cushion tariff impacts.

Disclaimer: The views and recommendations above are those of individual analysts or brokerage firms. Investors should consult certified experts before making investment decisions.