Indian stock market: 7 things that changed for market overnight - Gift Nifty, Trump’s tariff threat to Wall Street rally

By Admin

05 Aug, 2025

The Indian stock market is poised for a cautious start on Tuesday, as multiple global and domestic triggers influence investor sentiment. From geopolitical tremors to macroeconomic data and rallying Wall Street indices, here are the seven major updates that reshaped the landscape for Dalal Street overnight.

1. Gift Nifty Signals Soft Opening

Gift Nifty was seen trading around the 24,740 mark, reflecting a discount of nearly 53 points from the previous Nifty futures close. This points towards a weak to flat start for the benchmark indices, Sensex and Nifty 50, amid global uncertainty.

2. Trump’s Tariff Threat Rattles Sentiment

Former US President Donald Trump stirred the geopolitical pot by threatening to "substantially raise" tariffs on Indian exports. This warning stems from India’s continued imports of discounted Russian oil, with Trump accusing New Delhi of profiteering. Although no exact figures were announced, the threat alone injected a note of caution among global investors and traders in India.

3. Wall Street Rally Supports Global Risk Appetite

In stark contrast, US markets ended on a strong note Monday, marking their biggest one-day percentage gain since late May.

• Dow Jones surged 585.06 points (1.34%)
  
  

• S&P 500 jumped 91.93 points (1.47%)
  
  

• Nasdaq Composite leaped 403.45 points (1.95%)
  
  

Big tech stocks led the charge, with Nvidia (+3.62%), Tesla (+2.2%), and Microsoft (+2.2%) posting solid gains. Emerging aviation tech stocks like Joby Aviation (+18.8%) and Blade Air (+17.2%) soared, while Berkshire Hathaway bucked the trend, falling 2.7%.

4. Positive Cues from Asian Markets

Despite the Trump noise, broader Asian markets traded positively on Tuesday:

• Nikkei 225: +0.42%
  
  

• Topix: +0.45%
  
  

• Kospi: +1.76%
  
  

• Kosdaq: +1.83%
  
  

However, Hang Seng Index futures hinted at a weaker opening, injecting some mixed signals into the regional outlook.

5. India Market Recap: A Bullish Monday

Indian indices had ended Monday on a firm note:

• Sensex closed up 418.81 points (0.52%) at 81,018.72
  
  

• Nifty 50 rose 157.40 points (0.64%) to close at 24,722.75
  
  

This uptrend was driven by widespread buying across sectors, suggesting sustained momentum if global headwinds ease.

6. Commodities Snapshot: Gold Shines, Oil Slips

• Gold gained for a fourth straight session, with spot gold up 0.2% at $3,380.61/oz, and US gold futures also up 0.2%. A weaker dollar and declining Treasury yields supported bullion.
  
  

• Crude Oil prices remained subdued.
  
  

• Brent: $68.75 (-0.01%)
  
  

• WTI: $66.26 (-0.05%)
  Oversupply concerns weighed on sentiment, dragging prices to their lowest in a week.
  
  

7. Japan Services PMI Hits 5-Month High

On the macro front, Japan’s service sector posted its strongest performance since February. The S&P Global Japan Services PMI rose to 53.6 in July, up from 51.7 in June, reflecting steady demand in the region’s second-largest economy.

Expert Takeaway

“There continues to be no dearth of trading opportunities across sectors. Traders are advised to align their positions accordingly, with a strong emphasis on stock selection and effective trade management,” said Ajit Mishra, SVP, Research at Religare Broking Ltd.

Conclusion

Today’s market opening may appear muted, but global optimism and domestic resilience could counterbalance caution from geopolitical uncertainty. Investors should tread carefully, keeping an eye on tariff developments and global commodity trends, while leveraging sector-specific momentum.

Disclaimer: The views and recommendations mentioned are those of individual analysts or brokerage firms. Investors are advised to consult certified financial experts before making investment decisions.