Indices May See Volatility On Mixed Asian Cues

27-Feb-25   08:27 Hrs IST

GIFT Nifty:

The GIFT Nifty March 2025 futures contract is up 9.50 points, indicating a positive opening in the Nifty 50 index today.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 3,529.10 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 3,030.78 crore in the Indian equity market on 25 February 2025, provisional data showed.

According to NSDL data, FPIs have sold shares worth Rs 40034.80 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:

Most Asian shares declined on Thursday, influenced by a combination of Nvidia's earnings results and renewed US trade tariff concerns.

Nvidia, a key player in the AI sector, reported strong quarterly figures, forecasting first-quarter revenue of $43 billion, exceeding expectations of $42.05 billion. However, a projected softer-than-expected gross margin, attributed to the Blackwell production ramp-up, led to a volatile after-hours trading session, with the stock fluctuating between gains and losses. This muted investor response followed a period of consistently high expectations. '

Adding to market unease, President Donald Trump announced plans to impose 25% tariffs on the European Union and reiterated that tariffs on Mexico and Canada would take effect on April 2. Contradictory statements within his announcement created confusion and uncertainty among investors. '

These developments followed a flat close for U.S. stocks on Wednesday, which had already seen four consecutive days of losses. Concerns about a potential U.S. economic slowdown, reflected in weak consumer sentiment data, further contributed to the negative market sentiment.

Specifically, the S&P 500 closed unchanged at 5,956.18 points, the NASDAQ Composite rose 0.3% to 19,075.26 points, and the Dow Jones Industrial Average fell 0.4% to 43,433.12 points. '

Investors are now awaiting key economic data, including fourth-quarter gross domestic product figures due Thursday and the Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, scheduled for Friday.

Domestic Market:

The domestic equity benchmarks closed near flat line on Tuesday, with investors cautiously awaiting key US economic data, including Core PCE and GDP figures, impacting Federal Reserve policy expectations. The Nifty finished just below 22,550. After a slightly lower opening due to global cues, indices traded rangebound, supported by auto, FMCG, and consumer durables. Late-session selling in metal, PSU banks, oil & gas, realty, and IT stocks erased the intraday gains. The S&P BSE Sensex advanced 147.71 points or 0.20% to 74,602.12. The Nifty 50 index fell 5.80 points or 0.03% to 22,547.55.

The stock market was closed on Wednesday, 26th February 2025, in observance of Mahashivratri.

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