Opening Bell : Benchmarks likely to get negative start of holiday shortened week on weak global cues
Indian equity benchmarks are likely to get a negative start of holiday shortened week following weak global cues and foreign fund outflows from domestic markets. Sticky inflation in the US, US President Donald Trump's tariffs, a new bat-linked coronavirus in China, and a surprise attack by Russia on Ukraine likely to weigh on domestic sentiments.
Some of the key factors to be watched:
Foreign fund outflows: Foreign investors have pulled out over Rs 23,710 crore from the Indian equity markets so far this month, pushing total outflows past Rs 1 trillion in 2025 amid rising global trade tensions.
India’s forex reserves down by $2.54 billion: The RBI said snapping the three-week rising streak, India’s forex reserves dropped by $2.54 billion to $635.721 billion in the week ended February 14.
India, UK to resume negotiations for proposed FTA: After a gap of over eight months, India and the UK will resume negotiations for a proposed free trade agreement (FTA) here from February 24.
There will be some buzz in banking stocks: The RBI data showed that bank credit as well as deposits witnessed deceleration during the October-December quarter sequentially.
Coal industry stocks will be in focus: A private report indicated that India's coal imports remained flat at 201.30 million tonnes (MT) in the April-December period of the ongoing financial year.
On the global front: The US markets ended lower on Friday driven by disappointing US economic data pointing to a slowing economy and persistent inflation. Asian markets are trading mostly in red on Monday following Wall Street’s worst session of the year last Friday.
Back home, Indian equity benchmarks ended over half percent lower on Friday, weighed down by sustained foreign fund outflows. Finally, the BSE Sensex fell 424.90 points or 0.56% to 75,311.06, and the CNX Nifty was down by 117.25 points or 0.51% to 22,795.90.
Some of the important factors in today’s trade:
India's GDP growth to slow to 6.4% in 2025: Moody's Analytics said India's growth will slow to 6.4 per cent in 2025, from 6.6 per cent in 2024, as new US tariffs and softening global demand weigh on exports.
Treasury yields edged lower: U.S. Treasury yields were slightly lower as investors awaited more economic data, and assessed the latest comments from Federal Reserve officials on stubborn inflation and the potential impact of tariffs.
India’s private sector activity at 6-month high: The HSBC Flash India PMI report said private sector activity grew at the highest pace in six months in February. The Purchasing Managers' Index (PMI) output rose to 60.6 in February.
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