Here's a breakdown of the key factors influencing the Indian stock market overnight:

1. Global Market Cues:

• Mixed Global Signals: Indian stock markets are taking cues from mixed global market trends.
• Asian Markets: Asian markets have shown a mix of positive and negative trading.
• US Markets: On Monday, US equities closed higher, with the S&P 500 and Nasdaq hitting intraday record highs. The Dow Jones Industrial Average surged by 49.23 points (0.11%) to close at 45,883.45. The S&P 500 was up by 30.99 points (0.47%), ending at 6,615.28. The Nasdaq Composite was trading higher by 207.65 points (0.94%), finishing at 22,348.75. Earlier last week, Wall Street's main indexes closed mixed, with the Nasdaq attaining a new record high close.

2. GIFT Nifty:

• Flat Start Indicator: GIFT Nifty was trading around 25,161, which is slightly lower than the previous Nifty futures close. This hinted at a potentially lackluster start for the Indian markets. Another report mentioned GIFT Nifty trading around 25,085, a slight premium, suggesting a flat opening.

3. US Federal Reserve (US Fed) Meeting:

• Interest Rate Decision: The US Federal Open Market Committee (FOMC) is expected to deliver a 25-basis-point rate cut. Traders have priced in a high probability (96%) of this move.
• Investor Caution: Indian investors are displaying caution in anticipation of the US Fed's policy decision.
• Rupee Impact: The Indian rupee has strengthened against the US dollar due to the dollar's weakness ahead of the Federal Reserve's policy meeting.

4. Trade Talk Developments:

• US Trade Negotiations: Progress in trade discussions between the US and both China and India is boosting investor confidence. Investors are closely monitoring progress on the India-US trade deal.
• India-EU Trade Deal: Developments surrounding the India-EU trade deal are also under scrutiny.

5. Gold Prices:

• Slight Increase: Spot gold was trading 0.1% higher at $3,680.17/oz. US gold futures were trading flat at $3,718.80.
• Monitoring Policy Outlook: Investors are watching for cues on the Federal Reserve's policy outlook, especially with the Jackson Hole symposium approaching.

Additional Factors:

• Crude Oil Prices: Crude oil prices have increased due to Ukrainian drone attacks on Russian refineries, raising concerns about potential supply disruptions.
• Domestic Market Performance: On Monday, Indian indices closed in the red: Sensex slumped by 118.96 points (0.15%) to close at 81,785.74; Nifty 50 moved down by 44.80 points (0.18%) to settle at 25,069.20. However, earlier last week, the Indian stock market closed higher, with the Nifty 50 finishing above the 25,100 mark.
• FII Flows & Macro Data: Foreign fund flows and key domestic macroeconomic data are being closely monitored by investors.
• Sectoral Trends: On Monday, weakness in IT and auto shares dragged benchmarks lower.