Here's a look at eight significant developments that could influence the Indian stock market in the coming week:
1. Gift Nifty Signals Potential Market Direction
The GIFT Nifty, formerly known as SGX Nifty, has become an important indicator for the Indian stock market, especially for foreign investors. It essentially mirrors the performance of the Nifty 50 index but is traded in US dollars, offering international investors a way to participate in the Indian equity market without facing local capital control restrictions. On October 27, 2025, the GIFT Nifty was trading at ₹25,915.00. A strong GIFT Nifty performance often indicates a bullish opening for the Nifty 50.
2. Nikkei's Bullish Momentum
Japan's Nikkei 225 index has been on a strong uptrend, recently crossing the 50,000 mark for the first time. This rally is fueled by expectations of economic stimulus from the new Prime Minister, Sanae Takaichi. Takaichi's policies are focused on growth, with a stimulus package expected to exceed 13.9 trillion yen ($92.2 billion). The Nikkei's rise can boost overall global market sentiment, potentially impacting the Indian stock market positively.
3. US-China Trade Deal Framework
The United States and China have reportedly reached a "basic consensus" on a potential trade deal, days before President Trump is scheduled to meet with President Xi Jinping. US Treasury Secretary Scott Bessent stated that the additional 100% tariff that the US was supposed to implement from November 1 on Chinese goods "is effectively off the table". This development has eased global trade tensions, which could positively influence market sentiment.
4. Trump-Xi Meeting in South Korea
President Trump is scheduled to meet with Chinese President Xi Jinping in South Korea on October 30. The meeting is expected to address the ongoing trade war between the two countries. Trump has expressed optimism about reaching a comprehensive deal, stating, "They want to make a deal, and we want to make a deal".
5. US Expects China to Make Substantial Soybean Purchases
As part of the trade talk framework, the U.S. expects Beijing to make "substantial" soybean purchases and offer a deferral on sweeping rare earth controls. Soybeans were a key point of contention in previous trade disputes, so this could signal a significant step forward.
6. China to Delay Export Controls on Minerals
China has agreed to delay export controls on minerals used in fighter jets, smartphones, and electric vehicles for a year as part of the trade truce. This decision is a major concession that could ease concerns about supply chain disruptions.
7. Domestic Profit-Taking in Indian Markets
After a robust four-week rally, Indian stock markets witnessed broad-based profit booking on Friday. The Sensex fell 344.52 points (0.41%) to close at 84,211.88, while the Nifty 50 slipped 96.25 points (0.37%) to end at 25,795.15. This profit-taking may lead to a short-term consolidation in the market.
8. Technical Levels to Watch
Analysts anticipate the Nifty to trade within the 25,600-26,100 range in the short term. A decisive break above 26,100 could open the door for an up move toward 26,500 in the coming weeks. On the downside, the 25,500-25,700 zone is expected to act as a strong support area. Dips toward 25,600-25,700 should be viewed as buying opportunities.
These factors, ranging from global trade dynamics to domestic market corrections, are poised to shape the trajectory of the Indian stock market in the coming days. Investors will be closely monitoring these developments to make informed decisions.
