GIFT Nifty:

The Nifty 50 is projected to open lower, following a 19-point decline in the GIFT Nifty February 2025 futures contract.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 2,463.72 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,515.52 crore in the Indian equity market on 10 February 2025, provisional data showed.

According to NSDL data, FPIs have sold shares worth Rs 9700.90 crore (so far) in the secondary market during February 2025. This follows their sale of shares worth Rs 81903.72 crore in January 2024.

Global Markets:

US Dow Jones index futures were down 106 points, suggesting a weak opening for US equities.

Most Asian indices traded lower on Tuesday as investors remained cautious over Donald Trump's latest tariff decisions. The U.S. President signed off on 25% tariffs on steel and aluminum imports, warning that more trade measures could follow.

On Monday, Trump formalized the tariffs through executive orders, stating that there would be no exceptions. While major steel exporters like Canada, Mexico, and Brazil had previously enjoyed some quota-based exemptions, those privileges are now revoked.

Trump hinted that tariffs on metals could go even higher and suggested he was considering duties on cars, semiconductors, and pharmaceuticals. He also proposed raising U.S. import tariffs to match the rates imposed by foreign countries on American goods.

In the U.S., the S&P 500 closed higher on Monday as a tech-driven rally, led by Nvidia, offset worries about Trump's tariff threats. Investors also looked ahead to key economic data and Federal Reserve Chairman Jerome Powell's testimony later in the week.

The Dow Jones Industrial Average rose 0.4%, the S&P 500 index gained 0.7%, and the NASDAQ Composite climbed 1%.

Nvidia jumped 3%, leading the tech sector higher after analysts described the stock as a buying opportunity following its recent dip. The optimism comes ahead of the company's quarterly earnings report, set for release on February 26.

Fed Chair Jerome Powell is expected to face tough questions on the potential economic impact of tariffs when he delivers his semiannual monetary policy testimony before Congress on Tuesday and Wednesday.

Meanwhile, investors are closely watching U.S. consumer inflation data for January, scheduled for release on Wednesday. The report could influence the Fed's stance on interest rates and shape market expectations in the coming weeks.

Domestic Market:

The domestic equity benchmarks experienced a sharp decline on Monday, marking the fourth consecutive day of losses. The downturn was fueled by escalating global trade tensions following the announcement of new tariffs on all US steel and aluminum imports by US President Donald Trump.

The Nifty index closed below the 23,400 mark, with all sectors on the NSE registering losses. Realty and metal stocks were particularly hard hit. The looming threat of reciprocal tariffs and the broader implications for global trade have significantly dampened investor sentiment.

The S&P BSE Sensex tanked 548.39 points or 0.70% to 77,311.80. The Nifty 50 index declined 178.35 points or 0.76% to 23,381.60. In four consecutive trading sessions, the Sensex and Nifty declined by 1.61% and 1.50%, respectively.

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