Gift Nifty futures traded mildly higher on Wednesday, hinting at a potential rebound in Indian markets after the previous session’s sharp sell-off. At 8.00 am IST, Gift Nifty futures on NSEIX were up 70 points, or 0.3 percent, from Tuesday’s close, signaling a positive start for benchmark indices. This comes after Indian markets experienced their sharpest single-day fall in three weeks, with the Sensex crashing over 1,000 points and the Nifty slipping 1.3 percent on Tuesday.
Global cues mixed as US Fed signals no rush for rate cuts
Overnight, Wall Street indices ended mixed as investors digested US Federal Reserve Chair Jerome Powell’s testimony before the US Senate. Jerome Powell maintained a neutral stance, reiterating that the Fed “does not need to be in a hurry” to adjust its policy stance. He emphasized the Fed’s commitment to tackling inflation, indicating that rate cuts are not on the immediate horizon.
Globally, stocks rose and US Treasury yields firmed on Wednesday. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.32 percent, following a mixed session on Wall Street, which remained mostly flat. Nasdaq futures ticked 0.08 percent higher, while S&P 500 futures shed 0.02 percent. Bond yields climbed further, with Treasuries falling across the curve, reflecting investor caution as they await upcoming US inflation data.
Also read | MSCI February Review: Hyundai India joins Global Standard Index, IndusInd Bank sees weight increase
Asian markets trade mixed
Asian equities were mixed in early trade on Wednesday. Japan’s Nikkei rose 0.25 percent after returning from a holiday break, while the Topix edged up 0.22 percent. In contrast, South Korea’s Kospi dipped 0.21 percent. Hong Kong's Hang Seng Index advanced 0.7 percent, buoyed by gains in tech and property stocks, while China's CSI300 blue-chip index fell 0.29 percent, and the Shanghai Composite Index slipped 0.16 percent.
Market focus on Trump-Modi meeting, reciprocal tariffs
Investors remain focused on the upcoming meeting between US President Donald Trump and Indian Prime Minister Narendra Modi, scheduled for tomorrow. Markets are awaiting announcements on potential reciprocal tariffs following Trump’s recent escalation of duties on steel and aluminium imports. The uncertainty surrounding trade policies continues to weigh on investor sentiment, especially after Trump’s executive orders revoked exemptions for key trading partners like Canada, Mexico, and Brazil.
Commodities and currency update
West Texas Intermediate crude fell 0.4 percent to $73.03 a barrel, extending its recent decline amid global economic concerns. Spot gold declined 0.2 percent to $2,891.65 an ounce as investors moved towards safer assets like the US dollar, which has strengthened in the wake of Trump’s tariff policies and Powell’s cautious stance.
FII and DII activity
On February 11, Foreign Institutional Investors (FIIs) remained net sellers, offloading shares worth Rs 4,486 crore, while Domestic Institutional Investors (DIIs) were net buyers at Rs 4,002 crore. For the year so far, FIIs have net sold shares worth Rs 1.04 lakh crore, while DIIs have purchased Rs 99,380 crore worth of shares. The persistent FII outflows continue to add pressure on Indian markets, especially with the rupee’s recent volatility, though a recovery was seen on Tuesday.
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