Market Today: GIFT Nifty, Nifty rebalancing, FII, Nasdaq, Quality Power IPO

Stock Markets Today, February 24, 2025: Benchmarks, Nifty50 and Sensex, are likely to be influenced by geopolitical concerns, weak global cues, along with FIIs, in Monday's session. 

 

At 7:06 AM, GIFT Nifty Futures were trading 139 points lower at 22,684, hinting at a gap-down start for the bourses.

 

In the previous session, Sensex shed 424.90 points, or 0.56 per cent, to settle at 75,311.06. The Nifty50 also ended 127.25 points, or 0.51 per cent lower at 22,795.90.   READ: Stock Market Updates Today LIVE

 

Global cues

 

Asia-Pacific markets started the day lower following Wall Street’s worst session of the year last Friday. The ASX 200 was trading 0.08 per cent lower, while Kospi slipped 0.7 per cent.   The drop was driven by disappointing US economic data pointing to a slowing economy and persistent inflation. The S&P Global US Services PMI dropped to 49.7 in February 2025, down from 52.9 the previous month.  US consumer sentiment also fell more than expected in February, hitting a 15-month low of 64.7. Inflation expectations surged as households expressed concern that Trump's proposed broad and steep tariffs could undermine their purchasing power.

 

 

On Friday, US markets ended lower as fresh data sparked concerns about the economy. The declines worsened amid fears of potential policy actions by Trump, who has already proposed numerous tariffs and other policy changes in his first month in office. The Dow Jones fell 1.69 per cent. The S&P 500 dropped 1.71 per cent. The Nasdaq tanked 2.2 per cent.

 

Domestic cues

 

FII, DII

 

FIIs sold shares worth Rs 3,449.15 crore, while DIIs bought shares worth Rs 2,884.61 crore, on February 21.

 

IPO market

 

Quality Power IPO (Mainline), Royalarc Electrodes IPO (SME) and Tejas Cargo IPO (SME) will list on the bourses today. 

 

Nukleus Office IPO (SME) will open for subscription. Beezaasan Explotech IPO (SME) will enter Day 2, while Swasth Foodtech IPO (SME) and HP Telecom IPO (SME) will enter Day 3.

 

Other triggers

 

It has been a slow grind to lower levels for the markets in the past few months. Hiren Ved, director and chief investment officer (CIO) of Alchemy Capital Management, tells Business Standard that broking volumes may get impacted by market conditions, especially if volatility leads to cautious investor sentiment, resulting in lower trading activity.

 

In Q3FY25, five listed microfinance institutions reported a Rs 1,241 crore loss, driven by higher provisions and write-offs, compared to a Rs 844.8 crore profit in Q3FY24.

 

The Nifty50 and Nifty Next 50 indices' rebalancing will trigger a Rs 22,000 crore churn as funds adjust their holdings. The changes will take effect from March 28. 

 

Despite steady inflows, equity mutual funds have increased cash holdings to 6.1 per cent by January-end, up from 5.4 per cent in November, taking advantage of market corrections.

 

Commodity market

 

Gold prices dipped on Friday as investors took profits following the previous session's record high. However, the precious metal was still on track for its eighth consecutive weekly gain, supported by strong safe-haven demand amid concerns over US President Donald Trump's tariff proposals. Spot gold fell 0.1 per cent to $2,935.75 per ounce, while US gold futures dropped 0.2 per cent to $2,950.30.

 

Oil prices also declined on Friday, falling more than $2 a barrel, and posted a weekly loss as investors navigated a diminishing Middle East risk premium and uncertainty surrounding a potential peace deal in Ukraine. Brent crude futures closed down $2.05, or 2.68 per cent, at $74.43 a barrel, while US WTI) crude dropped $2.08, or 2.87 per cent, to $70.40.

 

Also Read: Oil and the war, 3 years on: Russia reshapes global energy dynamics

 

Here's how analysts are assessing today's (February 24) trading session:

 

Amol Athawale, VP of technical research at Kotak Securities 

We believe that the larger market texture remains on the weak side; however, we could expect a quick technical pullback rally if it succeeds in holding above 22950/76000. If it does, it could bounce back to 23100-23200/76500-76800. On the other hand, if it falls below 22720/75100, the correction wave is likely to continue. Below that level, it could slip to 22500-22400/74400-74100. Near 22400/74100, contrarian traders may prefer to take a long bet with a strict stop loss of 22320/73800.

 

Rupak De, senior technical analyst at LKP Securities

 

On the lower end, a correction towards 22,500 looks possible in the short term, while on the higher end, 22,850 might continue to remain a strong resistance.