Here's a look at ten significant overnight developments impacting the Indian stock market:

1. Gift Nifty Signals Subdued Start:

Gift Nifty was trading around the 25,156 level, indicating a negative start for Indian stock market indices. This represents a discount of nearly 29 points from Nifty futures' previous close.

2. Mixed Cues from Wall Street:

Overnight, the U.S. stock market presented a mixed picture. The Dow Jones Industrial Average declined 0.14%, while the S&P 500 rose 0.36% and the Nasdaq Composite gained 0.71%. The Nasdaq and S&P 500 both posted record closing highs. Previously, US stock markets closed on a mixed note. The Dow Jones fell 0.25%, the S&P 500 gained 0.38%, and the Nasdaq Composite surged 1.24%.

3. Asian Markets Mostly Higher:

Asian markets traded mostly higher. Japan's Nikkei 225 hit a record high for the second straight session, rallying 0.78%, while the Topix index rose 0.31%. Chinese, Hong Kong and South Korean markets are closed for holidays.

4. US-India Trade Deal Uncertainty:

Focus is now shifting to second-quarter corporate earnings, which may give some hint about the health of companies amidst the delay in the US-India trade deal.

5. US Manufacturing Data Disappoints:

The U.S. Manufacturing PMI fell to 48.3 in December, which is weaker than the expected 49.8. This indicates contraction in factory activity and marks its lowest point in over four and a half years.

6. US Tariffs Loom as a Potential Threat:

U.S. President Donald Trump had hinted at the possibility of imposing tariffs as high as 25% on Indian exports. While no final decision has been made, this adds uncertainty to the India-U.S. trade relationship.

7. Gold Prices Hold Steady:

Spot gold was steady at $3,329.19 per ounce, while U.S. gold futures edged up 0.1% to $3,327.70. Gold's performance is being closely watched for signs of rate cuts or a dovish stance by the Federal Reserve. Gold prices are trading near all-time high levels in domestic markets. MCX October futures hit 1.10 lakh rupees per 10 grams and December contracts are at 1.11 lakh rupees per 10 grams, boosted by global cues and expectations of a U.S. Federal Reserve rate cut.

8. Crude Oil Prices Surge:

Oil prices surged after Trump's warning of additional penalties on Russia, adding volatility to the energy markets. Brent crude rose 0.12% to $72.60/barrel, while WTI futures were flat at $69.20/barrel, marking the largest gain in six weeks, reflecting geopolitical tensions and market recalibrations.

9. Dollar Index Nears One-Month High:

The dollar index was seen at 98.815, nearing its one-month high. The euro gained 0.12% to $1.1558, Sterling stood at $1.3358, and the Japanese Yen firmed slightly to 148.20 per dollar. Currency movement reflects investor caution amid tariff discussions and global policy changes.

10. Previous Day Market Recap:

The Indian stock market closed sharply higher on Monday, led by strong buying in IT and banking stocks, with the Nifty 50 closing above the 25,000 level. The Sensex jumped 582.95 points, or 0.72%, to close at 81,790.12, while the Nifty 50 settled 183.40 points, or 0.74%, higher at 25,077.65.