Indian Stock Market: Wall Street Rally, Trump Tariff Threat, Gift Nifty Trends – 7 Things to Know

Indian equity markets are set for a muted opening on Tuesday, as investors weigh strong global cues against renewed worries after US President Donald Trump threatened to impose higher tariffs on Indian exports.

On Monday, the markets ended higher, with the Nifty 50 closing above 24,700 and the Sensex settling above 81,000, supported by broad-based buying across sectors.

🔑 7 Things That Changed for Markets Overnight

1. Gift Nifty Signals Weak Start 📉

Gift Nifty traded around 24,740, nearly 53 points below Nifty futures’ previous close, hinting at a subdued start for the Indian market.

2. Wall Street Rally 🚀

US markets delivered their biggest gains since May 27.

♦ Dow Jones: +585.06 points (1.34%) at 44,173.64

♦ S&P 500: +91.93 points (1.47%) at 6,329.94

♦ Nasdaq: +403.45 points (1.95%) at 21,053.58

Tech stocks led the rally: Nvidia (+3.62%), Microsoft (+2.20%), Tesla (+2.2%), AMD (+2.99%), while Joby Aviation (+18.8%) and Blade Air (+17.2%) soared. However, Berkshire Hathaway slipped 2.7%.

3. Trump’s Tariff Threat ⚠️

President Trump announced plans to “substantially raise tariffs on Indian exports” over India’s purchases of Russian oil, accusing New Delhi of profiting by reselling discounted Russian crude. He did not reveal the new tariff rate, raising uncertainty for trade-linked sectors.

4. Asian Markets in Green 🌏

Tracking Wall Street’s rally, Asian equities traded higher:

♦ Nikkei 225: +0.42%

♦ Topix: +0.45%

♦ Kospi: +1.76%

♦ Kosdaq: +1.83%

Hong Kong’s Hang Seng futures, however, hinted at a weaker open.

5. Japan Services PMI Expands 🏦

Japan’s service sector activity grew at its fastest pace in five months, with the S&P Global Services PMI at 53.6 in July, up from 51.7 in June.

6. Gold Prices Edge Higher 🪙

Supported by a weaker dollar and lower US yields, spot gold rose 0.2% to $3,380.61/oz, while US gold futures climbed to $3,434.30/oz.

7. Crude Oil Prices Steady 🛢️

After three days of declines, crude remained largely unchanged:

♦ Brent crude: $68.75 (-0.01%)

♦ WTI crude: $66.26 (-0.05%)

Both benchmarks had fallen over 1% in the prior session, their lowest in a week, amid oversupply concerns.

Market Expert View

Ajit Mishra, SVP – Research at Religare Broking, said:

“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.”