Gift Nifty, Trump’s Tariff Threat, Wall Street Rally, Crude Oil Prices, and More – What Investors Should Know
The Indian stock market is bracing for a cautious start on Tuesday after a volatile mix of global and domestic developments unfolded overnight. Despite Monday’s positive market close, the outlook remains shaky amid Donald Trump’s tariff threat to India, muted cues from Gift Nifty, Wall Street rally, and mixed performance in global commodities like gold and crude oil.
In this article, we decode seven key overnight events that are set to shape the market trend today. Read on to get in-depth insights for stock market investors, day traders, and financial analysts.
1. Gift Nifty Indicates Muted Start for Indian Stock Market
Gift Nifty trading below Nifty futures’ close
- Gift Nifty was seen trading around 24,740, which is a 53-point discount compared to Nifty futures’ previous close.
- This discount suggests a weak or flat opening for benchmark indices like Nifty 50 and Sensex.
- Investors are likely to adopt a wait-and-watch strategy due to rising global uncertainties.
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2. Donald Trump’s Tariff Threat Puts India on Edge
Rising geopolitical tensions shake investor confidence
- Former US President Donald Trump has threatened India with higher import tariffs if he returns to power.
- This announcement has spooked investor sentiment, especially for export-oriented sectors like IT, textiles, pharmaceuticals, and auto components.
- Markets will closely track any retaliatory signals from the Indian government.
Sectors That May Get Affected:
- IT and Software Services
- Auto Component Manufacturers
- Agricultural Exports
- Textile & Apparel
Keyword Focus: Trump India tariff, US-India trade war, export sector impact, geopolitical market risk
3. Wall Street Rally Offers Some Relief
US stock indices register their biggest gains since May 27
The US stock market ended higher on Monday, providing some positive cues to the global equity markets:
- Dow Jones Industrial Average surged 585.06 points (1.34%) to 44,173.64
- S&P 500 Index gained 91.93 points (1.47%) to 6,329.94
- Nasdaq Composite rose 403.45 points (1.95%) to settle at 21,053.58
Key Drivers:
- Positive corporate earnings
- Cooling US Treasury yields
- Weakening US dollar
- Strong technology sector performance
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4. Indian Market Closed Higher on Monday
Sensex crosses 81,000 mark; Nifty holds above 24,700
Despite global uncertainty, Indian equity benchmarks closed in the green on Monday:
- Sensex gained 418.81 points (0.52%) to close at 81,018.72
- Nifty 50 rose 157.40 points (0.64%) to 24,722.75
Sector-Wise Performance:
- IT and Banking led the rally
- Pharma and FMCG saw selective buying
- Metals and Energy stocks remained range-bound
Expert Quote:
“There continues to be no dearth of trading opportunities across sectors. Traders should focus on stock selection and effective trade management,” said Ajit Mishra, SVP – Research, Religare Broking.
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5. Gold Prices Continue Upward Momentum
Weak dollar and lower yields support precious metals
Gold prices have been rising for the past four sessions, aided by a softening US dollar and declining Treasury yields.
- Spot gold rose by 0.2% to $3,380.61 per ounce
- US gold futures also increased 0.2% to $3,434.30
Why Gold is Gaining:
- Rising geopolitical risks
- Inflation hedging
- Weakening dollar index
What It Means for Indian Investors:
- MCX gold prices may open higher today
- Jewelry stocks like Titan, Kalyan Jewellers, and Rajesh Exports could witness momentum
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6. Crude Oil Prices Hover Near One-Week Low
Oversupply concerns weigh on oil markets
Crude oil prices saw minimal movement after a three-day decline:
- Brent crude eased 0.01% to $68.75 per barrel
- WTI crude traded at $66.26 per barrel, down 0.05%
Reasons for Decline:
- Rising inventories in the US
- Slowing Chinese demand
- OPEC+ output remains stable despite oversupply worries
Impact on India:
- Lower oil prices may benefit Indian oil importers like IOC, BPCL, HPCL
- Could support CAD and help RBI maintain current interest rate stance
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7. Asian Markets Open in the Green
Regional indices cheer Wall Street gains
Asian equities reflected optimism from Wall Street’s strong overnight rally:
- Nikkei 225 gained 1.1%
- Hang Seng rose 0.7%
- Shanghai Composite added 0.5%
However, Indian markets may decouple slightly due to Trump’s tariff rhetoric and Gift Nifty’s weak start.
Keyword Focus: Asian markets today, Nikkei performance, Hang Seng trend, Shanghai index, global market opening
Expert View: What Should Traders and Investors Do Today?
Market strategy amid global volatility
Top trading and investing strategies for August 5, 2025:
Key Suggestions:
- Avoid aggressive long positions at open
- Focus on defensive sectors – FMCG, Pharma
- Prefer stocks with low US exposure
- Use tight stop losses on leveraged trades
- Watch key support levels: Nifty at 24,600, Sensex at 80,500
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Stocks to Watch Today – Top Gainers and Losers
Companies likely to show action
Likely Gainers:
- TCS, Infosys – supported by Nasdaq gains
- Titan, Muthoot Finance – gold price rise
- ONGC, Reliance – on Brent movement
Likely Losers:
- Bajaj Auto, Maruti – on Trump tariff fears
- HCL Tech, Tech Mahindra – due to IT outsourcing risk
- Tata Steel, JSW Steel – weak global commodity cues
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Conclusion: Indian Markets Walk a Tightrope Amid Global & Political Tensions
While the Indian stock market ended higher on Monday and global cues from Wall Street and Asia are broadly positive, the discount in Gift Nifty, Trump’s trade threats, and volatile commodity prices suggest a mixed to negative bias for Tuesday’s trading session.
Investors are advised to stay cautious, focus on quality stocks, and avoid overexposure to sectors vulnerable to geopolitical risks.
