Opening Bell : Benchmarks likely to get negative start amid weak global cues
Indian equity benchmarks are likely to make a negative start as the global trade tensions and weak global growth outlook weighed down the investor sentiments. However, markets may find some support with private report stating that India’s industrial activity rose slightly in January, with the index of industrial production growing by 3.5 percent compared with 3.2 percent in the previous month.
Some of the key factors to be watched:
Govt seeks Parliament nod to spend extra in current fiscal: Government sought Parliament nod to spend Rs 51,463 crore extra in current fiscal ending march, with major part going towards pension and subsidy fertiliser. The gross additional spending sought by the government is over Rs 6.78 lakh crore, of which Rs 6.27 lakh crore would be matched by savings and receipts.
No tariff cut pledge to US yet: The Indian government made it clear that it hasn’t made any tariff reduction commitments to the US yet.
India produced record rice, wheat, maize in 2024-25: As per Ministry of Agriculture and Farmers' Welfare's second advance estimates of production of major agricultural crops, India has produced record rice, wheat, and maize in the 2024-25 kharif season.
India to face AI talent gap: According to a private report the country is moving towards becoming an AI global hub for talent however, it could face a more than a million skilled AI professionals by 2027 unless urgent steps are taken to up skill the workforce.
Banking stocks will be in focus: Latest central bank data showed that Indian banks are advancing more loans than they are incrementally garnering deposits which pointing to only a partial success for dedicated lender programs aimed at boosting the deposit base and de-risking the credit environment.
On the global front: The US markets ended sharply lower amid uncertainty surrounding President Trump's tariff moves and rising fear of a recession as the higher prices could hinder Fed rate cuts. Asian markets are trading lower on Tuesday, tracking losses of Wall Street.
Back home, Indian equity benchmarks erased all of their initial gains and ended lower on Monday as uncertainty over tariff negotiations and geopolitical tensions kept investors on edge. Finally, the BSE Sensex fell 217.41 points or 0.29% to 74,115.17, and the CNX Nifty was down by 92.20 points or 0.41% to 22,460.30.
Some of the important factors in trade:
Unabated outflow of foreign funds: Foreign institutional investors (FIIs) offloaded equities worth Rs 2,035.10 crore on a net basis on Friday, according to exchange data.
Forex reserves declined by $1.78 billion to $638.698 billion: The RBI said India's forex reserves dropped by $1.781 billion to $638.698 billion in the week ended February 28. The overall forex kitty had jumped by $4.758 billion to $640.479 billion in the previous reporting week.
US Tariff Policy impacted rupee: Indian rupee depreciated by 40 paise, its steepest fall in over a month, at 87.36 (provisional) against the US dollar, as the American currency started recovering from six-month low level while trade-related uncertainties weighed on investor sentiment.
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