The Indian stock market is expected to open higher on Wednesday, July 23, 2025, influenced by positive global cues. Several key overnight developments have set the stage for this anticipated upswing, including movements in the GIFT Nifty, a trade deal between the US and Japan, and rallies in Asian markets like the Nikkei.
GIFT Nifty Indicates Positive Start
The GIFT Nifty, an index that reflects Nifty 50 futures for global investors, was trading around 25,162, a premium of approximately 68 points from the previous Nifty futures close. This suggests a likely positive opening for the Indian stock market indices. Formerly known as SGX Nifty, GIFT Nifty's price movements often provide insights into how the Indian stock market might open since it trades overnight.
US-Japan Trade Deal Boosts Market Sentiment
President Trump's announcement of a "massive" trade deal with Japan has instilled positive market sentiment. The agreement includes Japan investing $550 billion into the United States. A key component of the deal is a reciprocal tariff where the US will levy a lower 15% tariff on imports from Japan, including autos. This move is expected to stimulate economic growth and trade dynamics between the two countries. The opening of Japan to trade could enhance export opportunities for automotive companies like Ford Motor Company and General Motors.
Nikkei's Rally and Asian Market Gains
Asian markets traded higher following the US-Japan trade deal. Japan's Nikkei 225 jumped 2%, while the Topix rallied 1.87%. Japanese auto stocks, including Toyota, Nissan, and Honda, experienced a surge. South Korea's Kospi also saw a gain of 0.89%, and the small-cap Kosdaq was up by 0.22%. These positive movements in Asian markets are expected to contribute to the upbeat sentiment in the Indian stock market.
Wall Street's Mixed Performance
Overnight, the US stock market ended with mixed results. The Dow Jones Industrial Average rose 0.40% to 44,502.44, while the S&P 500 added 0.06% to close at a record high of 6,309.62. However, the Nasdaq closed 0.39% lower at 20,892.69. These mixed cues from Wall Street could lead to some volatility in the Indian market.
Other Factors
Market Performance Recap
On Tuesday, July 22, 2025, the Indian stock market indices ended the session on a flat note with a negative bias. The Sensex fell 13.53 points, or 0.02%, to close at 82,186.81, while the Nifty 50 settled 29.80 points, or 0.12%, lower at 25,060.90.
Expert Recommendations
Ajit Mishra from Religare Broking Ltd. advises traders to adopt a hedged approach and focus on fundamentally strong counters, emphasizing earnings performance. Nifty 50 is expected to find support between 25,000 and 24,940, and may encounter resistance near 25,240 and 25,350.
