GIFT Nifty hints towards positive start; Trump announces 'massive' trade deal with Japan

GIFT Nifty August 2025 futures were trading 37 points higher in early trade, suggesting a positive opening for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 3,548.92 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 5,239.77 crore in the Indian equity market on 22 July 2025, provisional data showed.

Global Markets:

Markets in Asian traded in the green, with Nikkei leading the gains, after President Donald Trump announced the signing of a massive? trade deal with Japan.

The deal includes reciprocal tariffs of 15% on the country?s exports to the U.S., with auto duties reportedly being lowered to that level as well.

Japanese Prime Minister Shigeru Ishiba reportedly said that he needed to examine the deal before commenting.

Additionally, the news that Washington had reportedly achieved agreements with the Philippines and Indonesia encouraged investors, giving them hope that other nations may also reach arrangements to avoid the worst of the US president's levies.

The announcements boosted hopes that other deals could be in the pipeline, though talks with the European Union and South Korea reportedly remain elusive for now.

Equity markets have been rising in recent weeks on hope that countries will eventually sign trade deals with the US. This is despite the fact that there haven't been many agreements reached with Trump, despite the deadline of 01 August 2025.

On Wall Steet, the Dow Jones Industrial Average and other indexes eased off the day's highs while the S&P 500 set another new high in the final minutes of trading Tuesday, as investors grinded though countless quarterly financial results.

According to media reports, the S&P 500 companies are expected to report a 7% increase in earnings on average for the second quarter, with technology heavyweights driving much of that gain.

Meanwhile, U.S. trade policy remains a major point of uncertainty for investors and companies as Trump's self-imposed 01 August deadline for many countries to reach agreements with the White House approaches.

On Tuesday, GM tumbled after the automaker reported a $1 billion hit from tariffs to its quarterly results, adding more fuel to investor concerns about U.S. President Donald Trump's global trade policy.

The recent rally in Wall Street?s most valuable companies has been fueled by the optimism about heavy spending on artificial intelligence.

Following the mixed economic data released last week, reports suggest that the market has trimmed its expectations about interest-rate cuts from the U.S. Federal Reserve at next week's policy meeting. The market now expects about a 60% chance of a reduction in rates at the September meeting.

Domestic Market:

Domestic equity benchmarks closed mostly flat today, registering slight losses as investor sentiment remained cautious. Market participants continued to grapple with uncertainty ahead of the August 1 deadline for a potential U.S. trade agreement. The Nifty index settled just below the 25,100 mark. All sectoral indices on the NSE ended in the red, with PSU banks and realty stocks experiencing notable declines.

The S&P BSE Sensex declined 13.53 points or 0.02% to 82,186.61. The Nifty 50 index fell 29.80 points or 0.12% to 25,060.90.

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