Indian stock market: 8 key things that changed for market overnight- Gift Nifty, India-UK FTA, ECB policy to gold prices

By Admin

25 Jul, 2025

The Indian stock market is bracing for a cautious start on Friday, July 25, 2025, amid a host of domestic and global developments that shaped investor sentiment overnight. Here’s a look at the eight key factors that changed for the market while you were asleep:

1. Gift Nifty Indicates Weak Opening

Gift Nifty was trading around 24,980, reflecting a discount of nearly 115 points from the Nifty futures’ previous close. This suggests a negative start for Indian equity indices, with market participants reacting to both global and local cues.

2. Domestic Indices Declined Sharply

On Thursday, the benchmark indices Sensex and Nifty 50 closed significantly lower due to broad-based selling.

• Sensex plunged 542.47 points (0.66%) to close at 82,184.17
  
  

• Nifty 50 fell 157.80 points (0.63%) to end at 25,062.10
  
  

Nifty failed to breach the 25,250 resistance level, indicating a cautious mood in the market. Analysts like Ajit Mishra (Religare Broking) suggest maintaining a stock-specific and hedged strategy.

3. Asian Markets Trade Lower

Asian equities mirrored the nervousness on Wall Street:

• Nikkei 225 fell 0.41%
  
  

• Topix declined 0.55%
  
  

• Kospi dropped 0.1%
  
  

• Kosdaq slipped 0.48%
  
  

• Hang Seng futures indicated a weak opening
  
  

Trade uncertainty and mixed signals from the US weighed heavily on sentiment.

4. Wall Street Ends Mixed

The US stock market ended mixed overnight, with tech-heavy indices showing resilience:

• Dow Jones fell 0.70%
  
  

• S&P 500 rose 0.07% to a record close
  
  

• Nasdaq climbed 0.18% to another all-time high
  
  

Key movers included:
📈 Alphabet (+0.88%), Nvidia (+1.73%), Microsoft (+0.99%)
📉 Tesla (-8.2%), Intel (-3.66%), IBM (-8%), American Airlines (-10%)

The tech rally was buoyed by optimism around AI earnings while industrials dragged down the broader Dow.

5. India-UK FTA Signed

India has formalized a Free Trade Agreement (FTA) with the United Kingdom, aimed at boosting bilateral trade by $34 billion.

• 99% of Indian exports will gain tariff benefits
  
  

• UK products like whisky, cars, cosmetics, and medical devices will become more affordable in India
  This deal is expected to positively impact sectors like automobiles, pharma, and manufacturing.
  
  

6. ECB Pauses Rate Cuts

The European Central Bank (ECB) kept its main interest rate unchanged at 2%, pausing after eight rate cuts since June 2024.
This move signals a wait-and-watch approach amid uncertainties around Europe’s future trade ties with the US and inflation dynamics.

7. Gold and Crude Oil Prices Edge Higher

• Gold prices rose 0.1% to $3,371.86/oz, supported by a weaker dollar and cautious risk sentiment.
  
  

• Brent Crude gained 0.30% to $69.39/barrel
  
  

• WTI Crude climbed 0.32% to $66.24/barrel
  
  

Oil prices were boosted by reports that Russia plans to restrict gasoline exports, hinting at potential supply tightness.

8. US Jobless Claims Fall

Initial jobless claims in the US dropped to 217,000, lower than the forecasted 226,000.
This unexpected decline reflects labor market resilience, which could influence future US Fed decisions on interest rates and keep equity markets volatile.

Conclusion:

With a mix of positive developments like the India-UK FTA and headwinds from global markets and sectoral weakness, Indian investors should brace for volatility. The negative start indicated by Gift Nifty and recent technical resistance in Nifty 50 emphasize the importance of a disciplined, stock-specific approach.

Stay tuned for market movements and adjust your portfolio strategy accordingly.