The Indian stock market is influenced by a multitude of global factors, and recent overnight developments in Gift Nifty, Nasdaq, and Bitcoin prices are no exception. These interconnected elements play a crucial role in shaping investor sentiment and market behavior.

Gift Nifty's Predictive Power

Gift Nifty, formerly known as SGX Nifty, serves as a pre-market indicator for the Nifty 50, offering insights into how the Indian stock market might open. Trading activity on Gift Nifty occurs outside of regular Indian trading hours, allowing investors to react to global market movements. A strong performance in Gift Nifty often signals a bullish opening for the Nifty 50, while a weak performance suggests a negative start. On August 14, 2025, Gift Nifty was trading around the 24,689 level, a discount of nearly 23 points from the Nifty futures' previous close, hinting at a weak start for Indian stock market indices.

Nasdaq's Influence

The Nasdaq, a major US stock market index, also exerts influence on the Indian stock market. Positive cues from the Nasdaq, especially driven by technology stocks, can boost sentiment in Indian IT stocks and the broader market. Conversely, a decline in the Nasdaq can trigger concerns and selling pressure in Indian equities. The Nasdaq Composite closed higher on August 7, 2025, which might have contributed to positive sentiment in the Indian market. However, on other days, mixed cues from the US market, including Nasdaq, have led to uncertainty in Indian markets.

Bitcoin's Correlation

Bitcoin and other cryptocurrencies have emerged as alternative investment options, and their price movements can indirectly impact the Indian stock market. While the direct correlation may not always be strong, a significant surge in Bitcoin prices can draw investor attention away from traditional assets like stocks. Conversely, a sharp correction in Bitcoin prices may lead investors to reallocate funds back into the equity market. Bitcoin price levels were around $118,000 on August 12, 2025, after approaching all-time highs, indicating strong investor interest in cryptocurrencies.

Other Influencing Factors

Besides Gift Nifty, Nasdaq, and Bitcoin, several other global and domestic factors can influence the Indian stock market. These include:

• Global economic cues: Overall global market trends, including economic data releases, policy announcements, and geopolitical events, impact the Indian stock market.
• US Federal Reserve decisions: Expectations of interest rate cuts or hikes by the US Federal Reserve can significantly influence market sentiment and capital flows.
• Crude oil prices: Fluctuations in crude oil prices can impact the Indian economy and corporate earnings, thereby affecting the stock market.
• India's CPI inflation: A drop in India's retail inflation, as seen in July 2025, can boost market sentiment and lead to a rally.
• Foreign Institutional Investor (FII) activity: Buying or selling by FIIs can significantly impact market direction.
• US-China trade relations: Developments in US-China trade relations and tariff policies can influence global trade and investment flows, affecting the Indian market.

In conclusion, the Indian stock market is increasingly interconnected with global markets. Overnight changes in Gift Nifty, Nasdaq, and Bitcoin prices, along with other global and domestic factors, all contribute to the dynamic nature of the Indian equity market. Investors need to stay informed about these factors to make well-informed decisions.