Shares may bounce on bargain hunting

GIFT Nifty:

The Nifty 50 is projected to open higher, following a 16.50-point rise in the GIFT Nifty February 2025 futures contract.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 4,486.41 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 4,001.89 crore in the Indian equity market on 11 February 2025, provisional data showed.

According to NSDL data, FPIs have sold shares worth Rs 12003.28 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 markets traded higher on Wednesday as investors digested the impact of recent U.S. trade policy changes on regional economies.

U.S. Federal Reserve Chair Jerome Powell re-emphasized on Tuesday the central banks focus on curbing inflation and signaled that policymakers were not in a rush to push interest rates lower.

In the U.S., the three major averages closed mixed. The S&P 500 added 0.03%, while the Nasdaq Composite lost 0.36%. The Dow Jones Industrial Average gained 0.28%.

Tesla Inc was a major weight on tech stocks, losing 6.3% during Tuesdays session as investors fretted over a slew of headwinds for the stock, including heightened competition from Chinese EV makers, as well as concerns that CEO Elon Musks focus may be too diluted.

Investors were still digesting the impact of recently imposed higher trade tariffs, which are expected to potentially underpin inflation and weigh on economic growth in the coming months. Further trade policy changes have also been signaled.

The Fed Chair is set to testify before Congress on Wednesday, where he is likely to be questioned about the impact of these policies on the economy and inflation.

Domestic Market:

The domestic equity benchmarks suffered losses for the fifth consecutive session on Tuesday, driven by concerns over escalating global trade tensions and disappointing corporate earnings. The S&P BSE Sensex plunged 1,018.20 points or 1.32% to 76,293.60. The Nifty 50 index declined 309.80 points, or 1.32% to 23,071.80. In five consecutive trading sessions, the Sensex and Nifty lost 2.91% and 2.81%, respectively.

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