Indices may open lower on weak global cues

GIFT Nifty:

The GIFT Nifty March 2025 futures contract is down 11.50 points, indicating a negative opening in the Nifty 50 index today.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 485.41 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 263.51 crore in the Indian equity market on 10 March 2025, provisional data showed.

According to NSDL data, FPIs have sold shares worth Rs 28463.50 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:

Asian stocks tumbled for a third straight session on Tuesday, mirroring Wall Street losses as fears grew that tariffs and political upheaval could derail growth in the world's largest economy.

Investor concerns deepened over a potential slowdown in US economic expansion after President Donald Trump escalated trade tensions and continued to cut spending while unsettling long-standing geopolitical alliances.

In Japan, fresh government data showed the economy grew at an annualized rate of 2.2% in Q4, down from an earlier estimate of 2.8%. However, the reading remained well above the previous quarters 1.2% expansion. Quarter-on-quarter, GDP growth was revised slightly lower to 0.6% from 0.7%, still ahead of the prior 0.3% pace.

On Wall Street, US stocks nosedived Monday, with the S&P 500 dropping 2.7%, the Dow Jones Industrial Average losing 2%, and the NASDAQ Composite plunging 4%largely driven by steep declines in major tech stocks.

Tesla Inc. led the selloff with a 15% plunge, while NVIDIA Corporation fell 5.1%. Broadcom Inc. shed 5.4%, and Arm Holdings declined 7.3%.

Bond markets reacted sharply, with 10-year Treasury yields slipping as investors bet that an economic slowdown could push the Federal Reserve toward interest rate cuts.

All eyes are now on the consumer price inflation report due Wednesday, a key data point ahead of next weeks Fed interest rate decision.

Last week, Fed Chair Jerome Powell signaled a cautious approach, emphasizing that the central bank was closely monitoring the impact of Trumps recent economic policies, including tariffs and federal worker layoffs.

Domestic Market:

The domestic benchmark equity indices declined on Monday, erasing early gains as profit-taking took hold in the afternoon. The Nifty slipped below 22,500 after touching an intraday high of 22,676.75. Realty, energy, and PSU bank stocks led the decline. The downturn was triggered by a sharp drop in US stock futures, renewed trade tensions, and weak cues from Asian markets. Investors remained cautious ahead of key economic data releases this week, including CPI figures from both the US and India. Asian markets struggled as concerns over deflationary pressures in China compounded worries about sluggish US growth and escalating global trade tensions.

The S&P BSE Sensex fell 217.41 points or 0.29% to 74,115.17. The Nifty 50 index lost 92.20 points or 0.41%, to 22,460.30.

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