Indian Markets to Start Week on a Weak Note; GIFT Nifty Trades Lower

On March 07, 2025, foreign institutional investors (FII) sold shares worth Rs 2,035.10 crore, while domestic institutional investors (DII) bought shares worth Rs 2,320.36 crore.

Pre-Market Update at 7:45 AM: Sensex and Nifty 50 are likely to open lower on Monday, influenced by mixed global market cues. While most Asian markets traded in the red, the US stock market closed higher last Friday. Wall Street recorded its steepest weekly decline in months, adding to the cautious sentiment.

Gift Nifty was trading near the 22,600 level, approximately 30 points lower than the previous close of Nifty futures, signaling a weak opening for Indian stock market indices. 

This week, investors will focus on key market triggers such as global trends, macroeconomic data, US tariff updates, foreign fund flows, and geopolitical developments. Additionally, fluctuations in the US dollar and crude oil prices will be closely monitored. On Friday, the Indian stock market ended a volatile session flat, with Nifty 50 managing to stay above 22,500.

The US stock market closed higher on Friday following Federal Reserve Chair Jerome Powell's statement that the economy was “in a good place.” Despite this, Wall Street experienced its steepest weekly decline in months due to uncertainty surrounding US trade policy.

The Dow Jones Industrial Average gained 222.64 points (0.52 per cent) to reach 42,801.72, while the S&P 500 advanced 31.68 points (0.55 per cent) to 5,770.20. The Nasdaq Composite climbed 126.97 points (0.70 per cent) to close at 18,196.22

US Fed Chair Jerome Powell said the central bank will go slower to cut interest rates and echoed concerns about President Donald Trump’s policies, Reuters reported. Powell said the Fed will take a cautious approach to monetary policy easing, adding the economy currently “continues to be in a good place.”

US job growth in February came in slightly below expectations, with the unemployment rate increasing to 4.1 per cent. Nonfarm payrolls rose by 151,000 last month after a downward revision of January’s figure to 125,000.

China’s consumer price index saw its sharpest drop in 13 months in February, while producer price deflation persisted for the 30th straight month. The consumer price index declined by 0.7 per cent year-over-year, following a 0.5 per cent rise in the prior month.

China’s new tariffs of up to 15 per cent on a range of US agricultural goods take effect on Monday. Additionally, Beijing announced a complete suspension of soybean imports from three US entities and a halt on purchases of American logs.

In the Asian markets Japan’s Nikkei 225 traded flat, and the Topix dropped 0.06 per cent. South Korea’s Kospi jumped 0.5 per cent, and the Kosdaq rose by 0.12 per cent. Hong Kong’s Hang Seng index futures signaled a weaker open was traded down by 0.73 per cemt.

Crude oil prices declined as increased output from OPEC producers and concerns over the impact of potential U.S. import tariffs on global economic growth and fuel demand weighed on the market. Brent crude slipped 0.36 per cent to USD 70.11 per barrel, while U.S. West Texas Intermediate (WTI) dropped 0.40 per cent to USD 66.77 per barrel. WTI registered its seventh consecutive weekly decline, marking its longest losing streak since November 2023, while Brent recorded losses for the third straight week.

The U.S. dollar weakened to multi-month lows against the euro and yen, depreciating against most major currencies on Friday. The dollar index, which tracks the greenback against a basket of six major currencies, declined 3.5 per cent over the past week. On Friday, it fell 0.4 per cent to 103.81, after touching its lowest level since early November.

On March 07, 2025, foreign institutional investors (FII) sold shares worth Rs 2,035.10 crore, while domestic institutional investors (DII) bought shares worth Rs 2,320.36 crore.

Stocks that are banned for trading in the F&O segment on March 10, 2025, are Manappuram Finance and Hindustan Copper.

Disclaimer: The article is for informational purposes only and not investment advice.