Benchmarks may extend losses on negative global cues

GIFT Nifty:

The Nifty 50 is projected to open lower, following a 68-point decline in the GIFT Nifty February 2025 futures contract.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 3,311.55 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 3,907.64 crore in the Indian equity market on 20 February 2025, provisional data showed.

According to NSDL data, FPIs have sold shares worth Rs 27081.64 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 stocks mostly fell on Friday due to ongoing worries about U.S. trade tariffs and the prospect of sustained high interest rates. However, strong earnings from Alibaba fueled a rally in Hong Kong.

Japanese stocks were little changed after stronger-than-expected January inflation data. Headline national CPI jumped to a two-year high of 4.0% year-on-year in January, up from 3.6% the previous month, according to government data. Core CPI, excluding fresh food and energy costs, rose slightly to 2.5% year-on-year from 2.4% in the prior month. This data strengthens the case for further interest rate hikes by the Bank of Japan.

Japanese manufacturing activity contracted for the eighth consecutive month in February. The au Jibun Bank manufacturing purchasing managers' index (PMI) was 48.9 in February, slightly better than January's 48.7. A reading below 50 indicates contraction.

U.S. stocks declined overnight after weak earnings from Walmart, raising concerns about a slowing economy. Wall Street also saw some profit-taking after the S&P 500 reached a series of record highs this week.

The S&P 500 fell 0.4% to 6,117.63, the NASDAQ Composite dropped 0.5% to 19,962.36, and the Dow Jones Industrial Average slid 1% to 44,176.90.

Walmart Inc. stabilized in after-hours trading after falling 6.5% during Thursday's session due to weaker-than-expected earnings for the December quarter. Walmart's losses affected other retail stocks, amid concerns that U.S. consumer spendinga key economic driverwas cooling after a strong year.

Domestic Market:

The domestic equity benchmarks closed slightly lower on Thursday, marking their third consecutive day of losses. Investor sentiment was negatively impacted by growing uncertainty surrounding U.S. tariff policies and their potential to fuel inflation. Despite the overall market downturn, mid- and small-cap indices showed signs of recovery. Trading activity was volatile due to the expiry of weekly index options on the NSE. The S&P BSE Sensex, slipped 203.22 points or 0.27% to 75,735.96. The Nifty 50 index shed 19.75 points or 0.09% to 22,913.15.

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