Indian Stock Market: 10 Key Overnight Developments – Gift Nifty, US Sell-Off, Bitcoin Reserve, and More

Sensex, Nifty 50 set for a weak start as global markets slide; Trump’s tariffs, Bitcoin reserve, and ECB rate cut among key market movers.

March 7, 2025: Indian Stock Market: 10 Key Overnight Developments – Gift Nifty, US Sell-Off, Bitcoin Reserve, and More

Sensex, Nifty 50 likely to open lower as global market uncertainties persist.

Mumbai: The Indian stock market is set for a weak opening on Friday, March 7, 2025, as global uncertainties weigh on sentiment. The Gift Nifty was trading at 22,557, a 63-point discount from the previous close of Nifty futures, signaling a negative start for benchmark indices Sensex and Nifty 50.

Also Read: India’s Ultra-Rich Population Set to Surge by 9.4% by 2028: Knight Frank Report

Despite a strong rally on Thursday, with the Sensex gaining 609.86 points (0.83%) to close at 74,340.09 and the Nifty 50 climbing 207.40 points (0.93%) to 22,544.70, concerns over Trump’s tariff policies and US stock market correction could impact investor confidence.

“The recent recovery was driven by attractive valuations after weeks of decline, but fresh selling pressure may emerge due to global trade uncertainties,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.

Also Read: Trump Delays Mexico Tariffs, Calls Canada a ‘High-Tariff Nation’ Ahead of April 2 Deadline

1. Asian Markets Drop

Japan’s Nikkei 225 declined 2.01%, while Topix lost 1.8%.
South Korea’s Kospi slipped 1.15%, and Kosdaq was down 0.57%.
Hong Kong’s Hang Seng index futures signaled a weaker open.
Japanese bond yields hit a 16-year high, with the 10-year JGB yield rising to 1.53%, the highest since June 2009.

2. Gift Nifty Signals Negative Start

The Gift Nifty traded around 22,557, a 63-point discount from Nifty futures’ previous close, indicating a subdued opening for the Indian stock market.

3. Wall Street Sell-Off

The Dow Jones fell 427.51 points (0.99%) to 42,579.08.
The S&P 500 dropped 1.78% to 5,738.52.
The Nasdaq Composite declined 2.61% to 18,069.26, confirming it has been in a correction since December.

Among major US stocks:

Tesla fell 5.6%, General Motors lost 2.6%, and Ford slipped 0.4%.
Nvidia declined 5.74%, Amazon lost 3.68%, and Microsoft dropped 1.03%.
Marvell shares crashed nearly 20%, while Kroger stock gained 2%.
Gap Inc. shares surged 20% in after-hours trading.

4. European Central Bank (ECB) Cuts Rates

The ECB cut interest rates by 25 basis points to 2.5%, citing slowing inflation and weak economic growth. This marks the sixth rate cut since June 2023.

5. Trump’s Tariff Policy Shifts

US President Donald Trump revised his tariff policy, granting Canada and Mexico a one-month exemption from the 25% tariffs imposed earlier this week.
Trump’s tariff stance continues to create market uncertainty, with global investors closely watching further developments.

6. Bitcoin Reserve Created in the US

Trump signed an executive order to establish a strategic Bitcoin reserve using seized crypto assets from federal law enforcement cases.
The move has sparked mixed reactions in the financial world, with some seeing it as an effort to legitimize Bitcoin as a state-controlled asset.

7. US Trade Deficit Hits Record High

The US trade deficit surged 34% in January to a record $131.4 billion, the largest monthly percentage increase since March 2015.
Imports jumped 10% to $401.2 billion, while exports rose only 1.2% to $269.8 billion.

8. US Jobless Claims Decline

New unemployment claims in the US fell more than expected, dropping 21,000 to 221,000 for the week ending March 1.
Economists had forecast 235,000 claims, suggesting a resilient US labor market.

9. Gold Prices Decline Slightly

Spot gold prices fell 0.3% to $2,900.48 per ounce but remained on track for a weekly gain of 1.6%.
US gold futures dropped 0.6% to $2,908.70.

10. Crude Oil Prices on Track for Weekly Decline

West Texas Intermediate (WTI) crude fell 0.33% to $66.14 per barrel, down 5% for the week.
Brent crude slipped 0.17% to $69.34 per barrel, marking its biggest weekly decline since October 2024.

Outlook for Indian Markets

With global markets reeling from US trade tensions, rate cuts, and cryptocurrency regulations, Indian equities may see profit booking after Thursday’s rally.

Investors will watch for domestic economic data, corporate earnings, and global cues to determine near-term market direction.

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Misha Bhatia