Stock Markets Today, Feb 20: Fed minutes, Nifty weekly F&O, Tariffs; IPOs

Stock Markets Today, Feb 20: With no major domestic stock market triggers, stock markets today are likely to stay range-bound where traders may prefer level-based trading

Stock Markets Today, Thursday, February 20, 2025: Stock markets today will watch out for global market cues, including developments around US President Donald Trump’s trade tariffs, and Russia-Ukraine talks, along with stock-specific news, foreign investors activity, and the Nifty weekly F&O expiry.

 

Besides, they will react to the minutes of the US Federal Reserve’s January monetary policy meeting, which were released overnight, and eye the US’ weekly jobless claims report (due today).

Stock Market Today Prediction, February 20:

India stock markets may open lower today. At 7:00 AM, GIFT Nifty futures were trading 56 points lower at 22,909 level.

 

 

On Wednesday, the BSE Sensex closed at 75,939, down 28 points or 0.04 per cent. NSE Nifty50, meanwhile, ended at 22,932.90, lower by 12 points or 0.05 per cent from its previous close.  

 

The broader indices, however, staged outperformance with the Nifty Smallcap100 index ending 2.36 per cent higher, and the Nifty Midcap100 index rising 1.56 per cent.

 

The Indian stock markets are likely forming a new base around the current levels in a bid to end the current stock market correction. The markets have ended flat for a third straight day, settling off the day’s low on all the three days.

 

With no domestic stock market triggers, stock markets today are likely to stay range-bound where traders may prefer level-based trading.

 

FII, DII Activity:

Foreign investors were back to their selling ways on Wednesday as FIIs/FPIs net sold India stocks worth Rs 1,881.30 crore.

 

DIIs, on the other hand, bought shares worth Rs 1,957.74 crore.

 

According to Herald Van Der Linde, head of equity strategy for Asia-Pacific at HSBC, FIIs have been selling Indian equity amid slowing earnings growth. Besides, the rising US bond yields, and the attractiveness of China has dented sentiment around India stock markets among FIIs. India, he said, is the “easiest” market to sell. READ INTERVIEW

 

Asia Markets, Wall Street News:

Asia Pacific markets were trading lower today morning as investors assessed the US Federal Reserve’s monetary policy meeting minutes and Trump’s 25-per cent tariff threat on semiconductors, autos, and pharmaceuticals, which may come into effect April 2 onwards.

 

That apart, US’ changed stance on Ukraine, under President Trump, has surprised investors. US President Donald Trump, on Wednesday, called Ukrainian President Volodymyr Zelenskyy a "dictator" and warned he had to move quickly to secure peace or risk losing his country.

 

Australia’s S&P/ASX 200 was down 1.25 per cent, Japan’s Nikkei 225 fell 1.18 per cent, South Korea’s Kospi slipped 0.76 per cent, and Hong Kong’s Hang Seng index shed 0.76 per cent.

 

China’s Shanghai Composite, too, was down 0.22 per cent after the People’s Bank of China held the 1-year loan prime rate unchanged at 3.1 per cent, and the 5-year LPR at 3.6 per cent today.

 

Meanwhile, minutes of the US Fed’s policy meeting showed that officials were concerned about the “upside risks to inflation” due to the possible changes in trade policies by President Donald Trump. The effect of tariffs on inflation and the US economy would be a key factor, they said, before taking a call on the next rate cut.

 

The officials said that they would need to see inflation come down more before lowering interest rates further.

 

Overnight, the S&P 500 rose 0.24 per cent, the Nasdaq Composite added 0.07 per cent, while the Dow Jones Industrial Average advanced 0.16 per cent.

 

RBI: State of the India Economy Report

In a separate development, the Reserve Bank of India (RBI), in its report released on Wednesday, said that the Union Budget for 2025-26 reaffirms the government’s commitment to fiscal discipline while fostering inclusive, long-term economic growth in line with the vision of Viksit Bharat.

 

The Indian economy, the RBI report added, is recovering amid expectations that the reduction in policy repo rate during the February monetary policy review meeting will boost domestic demand. READ MORE

 

Trump tariffs and India Impact:

Assessing the impact of Donald Trump’s latest round of tariffs, analysts at Goldman Sachs have considered various scenarios, to evaluate how much dent the reciprocal tariffs may cause to the Indian economy.

 

As per their report, the increase in average effective tariff rate imposed by the US on Indian exports could potentially impact India's gross domestic product (GDP) growth by 0.1-0.3 percentage points.

 

A potential GDP growth impact can be higher– 0.1-0.6 percentage point– in the case of the US imposing additional tariffs on all countries. READ MORE

 

IPO Updates Today, Feb 20:

The SME IPO section remains active with Shanmuga Hospital shares expected to debut on BSE SME today.

 

Meanwhile, Swasth Foodtech India IPO, and HP Telecom India IPO will open for subscription today.

 

Stock Market Outlook Today: Levels to watch on Nifty, Sensex today?

Vinay Rajani, Senior Technical & Derivative Analyst, HDFC Securities:

The support of 22,800 is well intact in Nifty chart and due to improvement in the broader market performance. The Nifty index has good chances to extend the pullback rally towards the next resistance of 23,235.

 

Rupak De, Senior Technical Analyst, LKP Securities:

On the lower end, 22,800 is likely to remain crucial support for Nifty. A decisive fall below 22,800 might trigger a meaningful correction. However, until that happens, we believe the market is likely to remain range-bound. On the higher end, 23,000/23,150 might act as resistance for Nifty. A decisive breakout above 23,150 could induce a significant rally in the market.