Several factors have influenced the Indian stock market overnight, creating a complex scenario for investors as of August 29, 2025. These include movements in the GIFT Nifty, cues from Wall Street, revisions to US GDP data, and the latest IIP figures for India.

GIFT Nifty The GIFT Nifty, formerly known as SGX Nifty, is an indicator of how the Indian stock market might perform. On August 29, 2025, GIFT Nifty was trading flat, suggesting a slightly positive opening for the NSE Nifty 50. GIFT Nifty was at 24,626 as of 6:30 a.m., implying that the Nifty 50 may open 58 points higher than its previous close. GIFT Nifty has a 21-hour trading day, split into two sessions. The index helps traders anticipate the direction of the Nifty 50 before the Indian stock market officially opens.

Wall Street Cues Wall Street's performance also plays a crucial role. On August 28, 2025, Wall Street's major averages closed higher, with the S&P 500 surpassing 6,500 and marking another record close. The tech-heavy Nasdaq Composite led the gains with a 0.5% increase. However, earlier in the week, stocks had slipped on Wall Street, giving back some gains from the previous week due to hopes for interest rate cuts by the Federal Reserve. The S&P 500 fell 0.4%, the Dow Jones Industrial Average closed 0.8% lower, and the Nasdaq composite decreased by 0.2%.

US GDP Data The U.S. economy's growth is another factor impacting market sentiment. The U.S. GDP growth for the second quarter of 2025 was revised upwards to 3.3%. This figure exceeded initial estimates and economist predictions. The revision primarily stemmed from upward revisions to investment and consumer spending, partly offset by downward revisions to government spending and an upward revision to imports. This suggests that the U.S. economy is proving more resilient than initially anticipated, despite challenges such as tariffs and high interest rates.

IIP Data India's Index of Industrial Production (IIP) data, released on August 28, 2025, showed that industrial output grew by 3.5% in July, a four-month high. This was an increase from the 1.5% growth in June. The manufacturing sector grew by 5.4% annually in July, compared to 3.7% the previous month. However, the mining sector contracted by 7.2%, and electricity production fell by 0.6%. Infrastructure and construction goods showed a significant rise of 11.9%.

Overall Market Sentiment Overall, the Indian stock market is expected to open higher, influenced by positive cues from Wall Street and the revised US GDP data. However, concerns remain due to mixed data in the IIP figures and global economic uncertainties. Investors are also closely watching the impact of potential interest rate cuts by the Federal Reserve and the performance of key stocks like Nvidia.