Indian stock market: 7 key things that changed for market overnight - Gift Nifty, DeepSeek concerns to Nvidia shares

Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to open on a cautious note on Tuesday following weakness in global markets.

Asian markets traded lower, while the US stock market ended mixed, with the Nasdaq posting its biggest one-day percentage drop since December 18, and the S&P 500 registering its biggest one-day percentage fall since January 10.

The emergence of a low-cost Chinese artificial intelligence model DeepSeek prompted a steep sell-off in US chipmakers and technology stocks globally.

On Monday, the Indian stock market suffered significant losses, with both the benchmark indices plunging over a percent each.

The Sensex crashed 824.29 points, or 1.08%, to close at 75,366.17, while the Nifty 50 settled 263.05 points, or 1.14%, lower at 22,829.15.

“With global market weakness and anxiousness around Trump’s trade policy, Indian equities are expected to remain under pressure in the near term. Investors will closely monitor the upcoming Q3 results, Federal Reserve’s stance and India’s Budget announcements during this 6-day trading week for further cues,” said Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded lower on Tuesday following overnight losses on Wall Street amid sell-off in technology stocks on concerns over China’s DeepSeek.

Japan’s Nikkei 225 declined 0.67% while the Topix dropped 0.36%. Hong Kong’s Hang Seng index futures indicated a higher opening. Several Asian markets, including Taiwan, South Korean and Chinese markets, are closed for the Lunar New Year holiday.

Gift Nifty Today

Gift Nifty was trading around 22,923 level, a premium of nearly 76 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.

Wall Street

US stock market ended mixed on Monday, with the Nasdaq posting its biggest one-day percentage drop since December 18, after a low-cost Chinese artificial intelligence model DeepSeek’s AI Assistant prompted a steep selloff in US chipmakers.

The Dow Jones Industrial Average gained 289.33 points, or 0.65%, to 44,713.58, while the S&P 500 lost 88.96 points, or 1.46%, to 6,012.28. The Nasdaq Composite closed 612.47 points, or 3.07%, lower at 19,341.83.

Nvidia share price sank 17%, Microsoft shares declined 2.1% and Alphabet stock price plunged 4.2%, while Dell Technologies share price dropped 8.7%. Apple shares rallied 3.18%, while Vistra stock dropped 28.3%.

Nvidia Share Price

Nvidia shares sank nearly 17% after the emergence of a low-cost Chinese generative AI model. Nvidia share price crashed 16.86% to end at $118.58 apiece on Monday, erasing about $593 billion in stock market value, the deepest ever one-day loss for a company on Wall Street, according to LSEG data. Nvidia’s market-cap loss on Monday was more than double the previous one-day record, set by Nvidia last September.

RBI

The Reserve Bank is set to infuse the much-needed liquidity of ₹1.5 lakh crore into the system over a period of time through a combination of forex and money market measures, setting the stage for a potential rate cut next week. RBI said it will purchase government securities worth ₹60,000 crore through open market operations (OMOs) in three tranches of ₹20,000 crore each. RBI will also conduct a 56-day variable rate repo auction worth ₹50,000 crore on 7 February and dollar/rupee sell swap auction of $5 billion for a tenor of six months on 31 January.

Oil Prices

Crude oil prices steadied after sinking by 2% on Monday. Brent crude oil fell 1.81% to $77.08 a barrel, while the US West Texas Intermediate (WTI) crude futures eased 0.08% to $73.11.

Gold Prices Today

Gold prices firmed after falling more than 1% in the previous session. Spot gold held its ground at $2,742.49 per ounce, while US gold futures gained 0.3% to $2,746.70.

(With inputs from Reuters)

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