The Indian stock market has experienced a turbulent weekend, influenced by a confluence of both domestic and international factors. Here are ten key changes impacting the market:

1. Gift Nifty Signals Mixed Sentiments:

The Gift Nifty, formerly known as SGX Nifty, serves as an early indicator of how the Indian stock market might open. It reflects global reactions to international developments during hours when Indian exchanges are closed. Recently, Gift Nifty futures were trading at 24,665.5 points, signaling a potentially lower opening than the previous close. However, recent trends indicate a mildly positive start, trading around 24603, a premium of nearly 35 points from the Nifty futures' previous close. Traders and investors closely monitor Gift Nifty to gauge market mood and plan their trades. Positive momentum in Gift Nifty often precedes higher openings for domestic indices.

2. Modi-Xi Meeting in China:

Prime Minister Narendra Modi met with Chinese President Xi Jinping on the sidelines of the Shanghai Cooperation Organisation (SCO) Summit in Tianjin. This marks Modi's first visit to China in seven years. Discussions focused on economic cooperation, border stability, and improving ties strained since the Galwan clash in 2020. Both leaders emphasized the need for stable and predictable relations for regional and global peace. They also addressed the trade deficit and sought increased investment ties. The meeting aimed to leverage the situation to build greater understanding between the two countries, especially to advance commercial ties.

3. Trump's Tariffs Take Effect:

The additional 25% tariffs imposed by the United States on Indian goods have come into effect, bringing the total levy to 50%. This move has created uncertainty for exporters and overall market sentiment. Sectors like textiles, gems and jewellery, seafood, chemicals, and auto components are expected to be hit hardest. The tariffs could potentially dampen future growth, impacting employment and private investment. Analysts suggest the tariffs have already sparked a sharp selloff and are expected to maintain pressure on the market in the near term.

4. GDP Data Exceeds Expectations:

India's GDP expanded by 7.8% in the April-June quarter of 2025, exceeding market expectations of 6.7%. This marks the fastest growth in five quarters, driven by robust farm output, private spending, and a thriving services sector. The data underscores the strength of India's domestic economy. Strong GDP growth can act as a market-stabilizing factor amidst tariff-related uncertainties.

5. FPI Outflows Continue:

Foreign portfolio investors (FPIs) have been net sellers of Indian stocks, with significant outflows in August. These outflows have contributed to the weakening of the rupee. Concerns over US tariffs and muted earnings have fueled this selling pressure.

6. Sectoral Impact of Tariffs:

Certain sectors are more vulnerable to the impact of Trump's tariffs. Export-oriented sectors like textiles and apparel, gems and jewellery, and seafood are expected to face headwinds. Sectors like pharmaceuticals, smartphones, and energy have been spared for now.

7. Rupee Volatility:

The Indian rupee has experienced volatility, hitting a record low against the US dollar. Continued FPI selling has further weakened the rupee. Currency depreciation fears could also impact bond markets if capital outflows accelerate.

8. GST Council Meeting:

An upcoming GST Council meeting is expected to discuss tax regime rationalization. Any major changes in GST rates could further influence market sentiment, potentially offsetting recent losses.

9. Global Market Cues:

Global market movements continue to influence the Indian stock market. News of Tokyo's chief trade representative canceling a planned visit to Washington caused volatility in Japanese markets. US political developments, such as President Trump announcing the removal of Federal Reserve Governor Lisa Cook, also impacted market sentiment.

10. SCO Summit Dynamics:

The SCO Summit, attended by leaders from Russia, China, and other nations, showcases solidarity and collective strength against US tariffs. It also signifies a shift away from depending on concessions from the US and towards exploring regional solutions.

In conclusion, the Indian stock market faces a complex interplay of factors. While strong GDP growth offers a buffer, Trump's tariffs and FPI outflows weigh on sentiment. The Modi-Xi meeting and the upcoming GST Council meeting could provide some positive direction, but investors are advised to remain cautious and monitor global cues closely.