Market Commentary - Pre-Session
19-Feb-2025 08:25
GIFT Nifty signals a negative start
GIFT Nifty:
The Nifty 50 is projected to open lower, following a 13.50-point decline in the GIFT Nifty February 2025 futures contract.
Institutional Flows:
Foreign portfolio investors (FPIs) bought shares worth Rs 4,786.56 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 3,072.19 crore in the Indian equity market on 18 February 2025, provisional data showed.
According to NSDL data, FPIs have sold shares worth Rs 30796.75 crore (so far) in the secondary market during February 2025. This follows their sale of shares worth Rs 81903.72 crore in January 2024.
Global Markets:
Asian stock markets saw a generally positive trend on Wednesday, despite lingering anxieties surrounding a potential global trade war and ongoing geopolitical instability.
Japan reported a larger-than-expected trade deficit of 2.76 trillion yen ($1.8 billion) for the latest period, reversing a prior surplus and exceeding forecasts of a 2.10 trillion yen deficit. Improving domestic demand and a stronger yen sparked an outsized surge in imports, while export growth also slightly underwhelmed.
Early Asian trading hours were marked by reports of potential 25% U.S. tariffs on automobile, semiconductor, and pharmaceutical imports, with a possible announcement in the coming as soon as April 2.
Investors are awaiting U.S. purchasing managers index (PMI) data for February, seeking further clarity on the U.S. economy's resilience amidst persistent inflation and trade-related uncertainties.
U.S. equities reached record highs on Tuesday, though gains were moderate ahead of Federal Reserve policy signals. The S&P 500 closed at a record high of 6,129.62, representing a 0.24% increase. The NASDAQ Composite rose marginally by 0.07% to 20,041.26. The Dow Jones Industrial Average remained relatively unchanged at 44,556.16.
In Saudi Arabia, the U.S. and Russia engaged in preliminary talks, with the U.S. seeking to gauge Russia's sincerity regarding a peace settlement in Ukraine.
The Federal Reserve is scheduled to release the minutes of its recent policy meeting, which will be closely scrutinized for insights into the central bank's interest rate strategy, particularly following signals of a prolonged pause in rate reductions. Investor focus is on what the feds minutes may reveal about rate intentions.
Domestic Market:
The domestic equity benchmarks closed marginally lower Tuesday, with the Nifty settling below 22,950 amid mixed global signals. Midcap and smallcap weakness initially drove the Nifty down to 22,801.50, but a mid-session recovery limited losses. IT and energy sectors outperformed, while FMCG and auto sectors declined. Market sentiment remained subdued, with continued FII selling and limited positive catalysts. Investors were also keenly awaiting the release of the Federal Open Market Committee (FOMC) minutes on February 19.
The S&P BSE Sensex slipped 29.47 points or 0.04% to 75,967.39. The Nifty 50 index declined 14.20 points or 0.06% to 22,945.30.
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