Here's a breakdown of the key overnight developments impacting the Indian stock market:
1. GIFT Nifty Signals a Cautious Opening
The GIFT Nifty, formerly known as SGX Nifty, is an indicator of how the Indian Nifty 50 index may perform at the open. As of today, July 8, 2025, the GIFT Nifty is trading around 25,475.50, a decrease of 0.16% or 40.50 points. This suggests a potentially subdued or slightly negative start for the Indian stock market. GIFT Nifty was trading around 25,499 level, a discount of nearly 40 points from the Nifty futures' previous close, indicating a weak start for the Indian stock market indices.
2. Impact of Trump's Tariffs
US President Donald Trump has announced steep tariffs on several countries, effective August 1, 2025. These tariffs, primarily set at 25%, target key trading partners, including Japan and South Korea, and have introduced uncertainty into the global market. Trump stated that trade ties with both nations were “far from reciprocal” and cited ongoing trade deficits as justification. The announcement follows Trump's earlier threats to impose a 10 per cent universal tariff on imports from over 100 countries starting August 1, 2025. Some analysts believe that the US is pressuring its top 12 trading partners to sign trade deals before that date by threatening higher tariffs.
Impact on Indian Market:
3. Samsung's Q2 Results and the Chip Market
Samsung Electronics is expected to release its Q2 earnings report soon. Early estimates suggest a possible 39% drop in operating profit due to weak AI chip sales. The world’s biggest maker of memory chips is projected to report an April-June operating profit of 6.3 trillion won ($4.62 billion), its lowest income in six quarters, according to LSEG SmartEStimate. Despite the current downturn in the chip market, Samsung is actively seeking to increase its share of chip demand in the burgeoning field of artificial intelligence (AI).
4. Asian Market Overview
Asian markets have shown a mixed performance. Japan's Nikkei 225 gained 0.36%, while the Topix index rose 0.31%. South Korea's Kospi index rallied 0.44% and the Kosdaq was up 0.19%. However, the Hong Kong's Hang Seng index futures indicated a weak opening.
5. US Market Performance
The US stock market ended sharply lower on Monday after President Trump announced hefty tariffs on its trading partners. The Dow Jones Industrial Average declined 422.17 points, or 0.94%, to 44,406.36, while the S&P 500 dropped 49.37 points. US indices responded with caution. The S&P 500 dropped 0.27 per cent, the Nasdaq shed 0.50 per cent, and the Dow Jones ended nearly flat.
6. Other Factors Influencing the Market
7. Expert Outlook
Ajit Mishra from Religare Broking Ltd. suggests maintaining a "buy on dips" approach, focusing on stock selection based on relative strength. He noted that markets remain in a wait-and-watch mode ahead of trade deal updates and the start of the earnings season.
8. Gift Nifty and its significance
GIFT Nifty provides an opportunity for global investors to participate in India's equity market without the need for local regulations and capital controls. It is an index that tracks the performance of the Nifty 50 but is traded internationally, enabling foreign investors to gain exposure to India's top 50 listed companies via a global platform. The GIFT Nifty is unique in that it operates outside the Indian regulatory framework, offering flexibility and enhanced accessibility to global investors.
