Here's a breakdown of the overnight changes in the Indian stock market, incorporating information about Gift Nifty, Wall Street's record close, and Tesla shares:

1. Gift Nifty Indicates a Muted Start

• The Gift Nifty was trading around 24,942 to 24,948 levels, which is a discount of approximately 19 to 25 points from the Nifty futures' previous close. This suggests a potentially weak or tepid opening for the Indian stock market indices.
• It's important to note that the trends on Gift Nifty often indicate the likely start for the Indian benchmark index.
• Formerly known as SGX Nifty, Gift Nifty is a derivative contract linked to India's Nifty 50 index. The relocation of Gift Nifty to the NSE International Exchange (NSE IX) in Gandhinagar signifies a shift in Indian financial markets.

2. Wall Street's Record Close

• U.S. stock market indices concluded at fresh record highs on Thursday, driven by technology stocks.
• The Dow Jones Industrial Average increased by 78.62 points, or 0.17%, reaching 46,519.72.
• The S&P 500 rose 0.06% to close at 6,715.35, marking a new all-time high.
• The Nasdaq Composite advanced 0.39% to 22,844.05, also achieving a record intraday level, supported by strength in Nvidia.
• Major stock indexes erased early declines to close higher for a fourth consecutive session on Wednesday, shaking off a U.S. government shutdown and a surprising decrease in private-sector jobs.

3. Tesla Shares Experience a Slide

• Despite reporting impressive third-quarter delivery numbers, Tesla shares slid by 5.1%.
• The company reported record-breaking results for Q3 2025, producing 447,450 vehicles and delivering 497,099 units worldwide. This exceeded Wall Street's estimates.
• The Model 3 and Model Y accounted for 481,166 units delivered in the quarter.
• Investors may have been anticipating this trend.
• Tesla's third-quarter earnings are scheduled for release on October 22.

4. Government Shutdown Impact

• The U.S. government shutdown, entering its second day, has begun to halt the release of key economic data.
• The shutdown began after Democrats and Republicans failed to reach a budget agreement.
• The nonfarm payrolls report will not be published due to the Labor Department’s pause on activity.

5. Asian Market Cues

• Asian markets traded mostly higher on Friday, mirroring overnight gains on Wall Street as investors seemed to disregard the U.S. government shutdown.
• Japan's Nikkei 225 rose 1.36%, while the Topix index gained 0.35%.
• Chinese and South Korean markets were closed for holidays.

6. Other Key Factors

• Optimism surrounding Artificial Intelligence (AI) continues to drive market sentiment, particularly for tech companies like Nvidia, AMD and SK Hynix.
• The Reserve Bank of India (RBI) kept the repo rate and policy stance unchanged and unveiled measures for the banking sector.

7. Market Expectations

• Despite some mixed cues, positive momentum is expected to be sustained, supported by accommodative monetary policy, a favorable monsoon season, and a boost in demand due to the festive season.