Robert J. Williams 
The Indian stock market is set for a cautious start this week, with the Gift Nifty trading around the 22,682 level, indicating a potential negative opening for the major indices. This comes as global markets faced a turbulent session, with significant declines observed across various sectors.
Global Market Overview
Asian markets opened lower, following a steep sell-off on Wall Street. The US stock market experienced its worst session of the year on Friday, driven by disappointing economic data and renewed tariff threats. The Dow Jones Industrial Average fell sharply, while the S&P 500 and Nasdaq Composite also registered significant losses.
Key Market Indicators
In India, the Sensex and Nifty 50 are expected to open lower, mirroring the global sentiment. Investors are closely monitoring several key indicators this week, including:
- India’s economic growth data
- February derivatives contracts expiry
- Donald Trump’s tariff announcements
- Rupee-dollar exchange rate
- Flow of foreign funds
- Domestic and global macroeconomic data
Performance Recap
On Friday, the Indian stock market continued its downward trend, marking the fourth consecutive session of losses. The Sensex dropped by 424.90 points to close at 75,311.06, while the Nifty 50 fell by 117.25 points to settle at 22,795.90. According to Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., factors such as relentless FII selling, a weakening rupee, and expensive valuations have contributed to the negative sentiment.
Asian Markets
Asian markets opened lower on Monday, influenced by weak economic data and the previous week’s losses. Notably, Japanese markets remained closed for a public holiday, while South Korea’s Kospi and Kosdaq indices declined. Hong Kong’s Hang Seng index futures indicated a weaker opening.
Gift Nifty Update
The Gift Nifty was trading at a discount of nearly 140 points from the Nifty futures’ previous close, signaling a negative start for Indian stock market indices. This reflects the cautious sentiment prevailing among investors.
Wall Street Recap
On Wall Street, the Dow Jones Industrial Average plunged by 748.63 points, while the S&P 500 and Nasdaq Composite also faced significant declines. Key stocks such as Tesla, Rivian, Nvidia, and Amazon experienced notable drops, contributing to the overall market downturn.
US Economic Indicators
The US business activity index fell to a 17-month low in February, as reported by S&P Global. The flash US Composite PMI Output Index, which tracks the manufacturing and services sectors, decreased to 50.4. Additionally, US consumer sentiment dropped to a 15-month low, with inflation expectations rising sharply.
Commodity Market Updates
Gold prices remained steady near an all-time high, with spot gold at $2,934.82 an ounce. Meanwhile, crude oil prices traded lower, with Brent crude and US West Texas Intermediate (WTI) crude futures experiencing slight declines.
Currency Market Trends
The US dollar continued its decline, while the euro and sterling gained strength. The yen also rose to its strongest level in over two months against the dollar, reflecting shifts in currency market dynamics.
Disclaimer: The views and recommendations expressed in this article are those of individual analysts or broking companies and do not necessarily reflect the views of Mint. Investors are advised to consult certified experts before making any investment decisions.
About Author
