GIFT Nifty trades in green indicating a gap up when Indian Stock markets open tomorrow morning.
As the US market index Dow Jones trades in red, the signals from Indian ADRs and GIFT Nifty indicate a positively guarded outlook for Indian stock markets when they open tomorrow morning on Tuesday, August 26, 2025. GIFT Nifty futures indicate mixed cues but predominantly indicate a stable to slightly upbeat opening, while Indian ADRs are indicative of a mild trend that will dictate the sentiment of the markets.
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GIFT Nifty, the Indian stock market's futures market barometer, traded between 24,940 to 25,000 in the previous sessions. On August 25, it fell marginally by 54-57 points, indicating some caution. Yet, it still stayed near the 25,000 level, indicating that the market might open with mild optimism or a marginally tepid opening. Analysts suggest that provided Nifty remains above the 24,700 support level, a judicious bullishness can be anticipated. A move above the 25,150 resistance level can take the market further towards the 25,300–25,500 zone on the back of better institutional inflows and good global cues, led by the US markets. However, dipping below crucial support levels could lead to some short-term profit-taking and volatility.
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Global drivers like the dovish policies of the US Federal Reserve and alleviating concerns over tariffs appear to support the Indian equities' optimistic mood. Tech stocks are likely to drive the gains with high correlation to the US market. Domestic optimism is also supported by expected reforms in GST and macroeconomic stability. Investors should, however, be cautious amid persisting geopolitical tensions and possible US tariff moves.
Dow Jones trades down significantly declining 0.44%, but top Indian ADRs such as Infosys, Wipro, ICICI Bank, and HDFC Bank exhibit mixed to somewhat favourable momentum in current trading session. While some ADRs decline marginally, others post modest increases, indicating a balanced but optimistic sentiment among international investors with caution.
Indian ADRs are usually used as a proxy for foreign institutional inflows. Higher ADR activity or price movement usually indicates positive foreign interest in the Indian market, which can translate into corresponding gains on domestic stock exchanges. In ADR-focused investors, the combination of better corporate performance in India and positive currency exchange movements (INR vs USD) is seen as a factor boosting their returns. This combination of steady returns and international exposure renders ADRs a key indicator of the overall market sentiment.
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Indian stock markets would look tomorrow to have a stable to somewhat upbeat opening on the back of GIFT Nifty's nearly flat to modestly bullish signals and favourable international inputs. Indian ADRs reflect similar sentiments with varied but overall positive trends. Investors will monitor key technical levels- support at 24,700 and resistance at 25,150, for direction in the market. Global macro sentiment, corporate earnings, and trade negotiations continue to dominate investor sentiment and market action.
In short, caution still exists on account of some geopolitical and tariff risks, but there are reasons to be optimistically cautious on market prospects for the trading day ahead in India.
