Here's a breakdown of the key factors influencing the Indian stock market overnight:

1. Gift Nifty: The Gift Nifty was trading around 25002, a premium of approximately 52 points from the Nifty futures' previous close, signaling a potentially positive opening for Indian stock market indices.

2. Global Market Cues: Asian markets exhibited an upward trend, mirroring the overnight rally in the US stock market, where all three major Wall Street indices achieved record highs. This positive global sentiment is likely to influence the Indian market positively.

3. Domestic Market Performance: On Tuesday, the Indian stock market closed higher, driven by gains in IT stocks. The Nifty 50 index concluded above the 24,800 level. The Sensex saw a rise of 314.02 points (0.39%) to close at 81,101.32, while the Nifty 50 increased by 95.45 points (0.39%) to settle at 24,868.60.

4. Analyst Outlook: Analysts maintain a cautiously optimistic outlook on the Nifty 50, advising close monitoring of banking and IT sectors for further direction. They suggest a "buy on dips" strategy in leading sectors, emphasizing the importance of a favorable risk-reward balance.

5. US-India Trade Talks: Investors are closely monitoring the progress of trade discussions between India and the US. Any positive movement could act as a significant upside trigger for the market.

6. US Tariffs on India: The US President had earlier imposed an additional 25% tariff on imports from India, bringing the combined tariffs to 50%. The market is sensitive to the fallout of these tariffs on India's economic growth. The Ministry of Commerce and Industry has stated that the government is assessing the implications of the tariff announcement.

7. FII and DII Activity: On July 29, 2025, Foreign Portfolio Investors (FPIs) sold shares worth ₹850.04 crore, while Domestic Institutional Investors (DIIs) were net buyers to the tune of ₹1,829.11 crore in the Indian equity market. During July 2025, FPIs have net sold shares worth ₹42,077.77 crore in the cash market.

8. Other Factors: * The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) had decided to keep the repo rate unchanged and maintain a neutral policy stance. * The market will be looking forward to Reliance AGM. Any word on value unlocking sheer weight on the stock and the underperformance that the stock has seen perhaps could lead the market higher. * GST rate rationalization that come in any positive move could impact the market. * US FOMC meet as well where there is a rate cut which is expected impact of heavy rains in the north on demand.