Indices may open higher, mixed global cues may cap gains

GIFT Nifty:

The GIFT Nifty March 2025 futures contract is up 45 points, indicating a positive opening in the Nifty 50 index today.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 2,377.32 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,617.80 crore in the Indian equity market on 6 March 2025, provisional data showed.

According to NSDL data, FPIs have sold shares worth Rs 22600 crore (so far) in the secondary market during March 2025. This follows their sale of shares worth Rs 41748.97 crore in February 2024.

Global Markets:

US Dow Jones index futures were up 95 points, indicating a positive opening in the US stocks today.

Most Asian shares fell on Friday after Wall Street traders navigated falling stocks amid whipsawing tariff headlines.

US stocks closed sharply lower Thursday amid uncertainty around President Donald Trumps tariff policies, while investors remained cautious ahead of a key employment report expected to provide insights into the nations economic health. The Dow Jones Industrial Average fell by 1%, while the NASDAQ Composite dropped 2.6%. The S&P 500 also declined 1.8%.

Technology stocks experienced significant losses. NVIDIA Corporation stock plunged 5.7%, while Tesla Inc closed 5.6% lower. Broadcom Inc closed 6.3% lower after jumping 13% in early trade on Thursday. The company reported upbeat guidance for the current quarter and better-than-expected first-quarter results on growing AI-led demand for its custom chips.

U.S. jobless claims fell more than expected last week to 221,000, signaling a strong labor market. For the week ending February 22, initial claims under the Unemployment Compensation for Federal Employees program rose to 1,634, up from 614 the previous week.

Investors now await Fridays employment report for insights on the economy and potential Fed rate moves amid tariff concerns and rising factory costs.

Meanwhile, U.S. President Donald Trump signed an executive order on Thursday to establish a strategic bitcoin reserve, a day before meeting with executives from the cryptocurrency industry at the White House. The reserve will be capitalized with bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings.

Domestic Market:

The domesic benchmark indices closed with strong gains for the second day in a row on Thursday, driven by positive global cues and falling crude oil prices. The Nifty index finished above the 22,500 level, recovering from an early dip to 22,245.85. Volatility was observed due to the expiry of weekly index options on the NSE. Energy, metal, and pharma stocks led the rally, while realty shares faced some pressure.

The decline in crude oil prices following OPEC+'s announcement of a gradual unwinding of production cuts provided a significant boost to market sentiment. Lower crude prices are beneficial for India, a major oil importer. The S&P BSE Sensex surged 609.86 points, or 0.83%, to 74,349.09. The Nifty 50 index added 207.40 points, or 0.93%, to 22,544.70. The 50-unit index has risen 2.02% in two straight sessions.

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