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Markets Today: Trump tariffs; FIIs; Gold; Swasth Foodtech, HP Telecom IPOs

US President Donald Trump, on Monday, confirmed that tariffs on imports from Canada and Mexico will proceed as planned once the monthlong delay ends next week

BSE NSE, Share market, Sensex, Nifty

Photo: Bloomberg

Tanmay Tiwary New Delhi

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Stock Markets Today, February 25, 2025: Trump's tariffs, mixed global cues, and foreign institutional investors (FIIs) are likely to influence the benchmarks, Nifty50 and Sensex, in Tuesday's session.
 
US President Donald Trump, on Monday, confirmed that tariffs on imports from Canada and Mexico will proceed as planned once the monthlong delay ends next week. He stated at a White House press conference that the tariffs would go forward on schedule, stressing that the US has been ‘taken advantage of’ by other nations. Trump reiterated his intention to impose reciprocal tariffs, asserting that ‘we’re going to make up a lot of territory.’ 
 
Trump had signed executive orders on February 1, imposing 25 per cent tariffs on Mexican and Canadian products, as well as 10 per cent duties on Canadian energy.  READ: Stock Market Today LIVE
 
Back home, as of 6:40 AM, GIFT Nifty Futures were down 43 points at 22,569, hinting at a negative start.
 
In the previous session, the Sensex plunged 856.65 points, or 1.14 per cent, to close at 74,454.41, while the Nifty50 dropped 242.55 points, or 1.06 per cent, to end at 22,553.35.
 
Global cues
 
Asia-Pacific markets opened lower on Tuesday, following a decline on Wall Street overnight. The drop in US markets was attributed to renewed concerns over Trump’s trade tariffs, which have created a risk-averse sentiment. 
 
Meanwhile, South Korea's central bank cut interest rates by 25 basis points to 2.75 per cent on Tuesday, the lowest since August 2022, to support a slowing economy. This was the third rate cut in four meetings, in line with economist expectations. The move comes amid ongoing political uncertainty surrounding President Yoon Suk Yeol's impeachment trial.
 
Last checked, the ASX 200 dropped 0.87 per cent, while Nikkei fell 1.34 per cent, and the Topix slipped 0.72 per cent. South Korea’s Kospi decreased 0.88 per cent.
 
On Wall Street, the S&P 500 dropped 0.5 per cent, while the Nasdaq declined 1.21 per cent. The Dow Jones, bucking the trend, ended 0.08 per cent higher.  READ: List of Stocks to Watch today
 
Domestic cues
 
FII, DII
 
FIIs net sold shares worth Rs 6,286.70 crore, while DIIs net bought shares worth Rs 5,185.65 crore, on February 24.
 
IPO market
 
Shreenath Papers IPO (SME) will open for subscription, while Swasth Foodtech IPO (SME) and HP Telecom IPO (SME) will see their allotment.
 
Also, Nukleus Office IPO (SME) will enter Day 2 and Beezaasan Explotech IPO (SME) will move to Day 3.
 
Other triggers
 
The three-year tenure of Madhabi Puri Buch, the first woman chairperson of the Sebi, is set to conclude in a few days. Her predecessors, Ajay Tyagi and U K Sinha, each served for over five years, thanks to extensions in their tenures. Traditionally, an extension after an initial three-year term has been the norm.
 
Promoter pledged holdings have declined amid the market selloff. Kotak Institutional Equities' analysis of BSE-500 companies showed a decrease from 0.87 per cent in September 2024 to 0.84 per cent in December 2024.
 
Analysts believe the market downturn since September 2024 has made stocks in large, mid, and smallcap segments attractive, presenting opportunities for long-term investors.
   
Apart from that, the consumption disparity is higher in urban areas than rural ones. Scheduled caste (SC) households saw a 5.6 per cent consumption gap in rural areas and 17 per cent in urban areas, compared to the national average. 
   
Commodity market
 
Gold prices hit a record high on Monday, fuelled by safe-haven demand amid concerns over Trump’s tariff plans. The surge was further supported by inflows into the world's largest gold-backed ETF. 
 
Last checked, spot gold was up 0.4 per cent, trading at $2,949 per ounce, while US gold futures rose 0.3 per cent to $2,963.20.
 
Oil prices also settled higher on Monday, bolstered by new US sanctions on Iran and Iraq’s pledge to compensate for its overproduction. These factors added to concerns about potential near-term supply tightness, helping the market recover some of the losses from Friday. Brent crude futures increased 0.5 per cent to $74.78 per barrel, while US WTI futures rose 0.4 per cent to $70.70.
 
Here's how analysts are assessing today's (February 25) trading session:
 
Rupak De, senior technical analyst at LKP Securities
 
The Nifty has broken down from a bearish flag and pole pattern, signaling the start of a correction. From here, the index may continue to decline in the short-term. Immediate support is seen at 22,450, and a drop below this level could trigger a further correction toward 22,200 or lower. On the upside, immediate resistance is observed in the 22,670-22,700 range.
 
Shrikant Chouhan, head of equity research at Kotak Securities
 
For traders, the level of 22650/74900 will act as a trend decider. As long as the market is trading below the same, weak sentiment is likely to continue. Below which it could slip till 22450-22400/74000-73800. Conversely, if it rises above 22650/74900, it could bounce back up to 22750-22800/75200-75500 .

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First Published: Feb 25 2025 | 7:07 AM IST

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