GIFT Nifty:

The Nifty 50 is projected to open lower, following a 43-point decline in the GIFT Nifty February 2025 futures contract.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 1,881.30 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,957.74 crore in the Indian equity market on 19 February 2025, provisional data showed.

According to NSDL data, FPIs have sold shares worth Rs 30796.75 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 67 points, suggesting a weak opening for US equities.

Asian equities fell on Thursday after the latest Federal Reserve minutes revealed a cautious stance on interest rate cuts, while former President Donald Trump called for new tariffs on key imports.

The minutes from the Fed's January meeting showed policymakers remained hesitant about lowering interest rates amid persistent inflation and economic uncertainty. Officials also discussed the possibility of pausing or slowing the balance-sheet runoff'known as quantitative tightening (QT)'until the ongoing debt-ceiling issue is resolved.

Trump announced plans to impose a 25% tariff on automobile, pharmaceutical, and semiconductor imports, a move that could escalate global trade tensions. These tariffs'ultimately shouldered by U.S. importers'have raised fears of further inflationary pressure in the short term.

Asian investors are eyeing several key data releases on Thursday, including Taiwan's export orders, Hong Kong's inflation figures, and China's one-year and five-year loan prime rates. Additionally, China's one-year medium-term lending facility data may be released anytime before February 25.

Despite cautious signals from the Fed, U.S. indices managed mild gains on Wednesday. The S&P 500 inched up 0.2% to a record high of 6,144.09 points, while the NASDAQ Composite added 0.1%, closing at 20,057.25 points. The Dow Jones Industrial Average also rose 0.2%, settling at 44,627.46 points.

The Fed minutes reiterated concerns about stubborn inflation and policy uncertainty, suggesting that rate cuts are unlikely in the near term.

Palantir Technologies tumbled more than 4% in after-hours trading, extending an 11% loss from Wednesday's session. Other defense stocks, including Lockheed Martin and RTX Corp, also saw mild aftermarket declines following reports that Defense Secretary Peter Hegseth had instructed Pentagon leaders to prepare for annual budget cuts of at least 8% over the next five years.

Fresh U.S. economic data released Wednesday showed a slowdown in housing starts for January, as both single-family and multifamily home construction pulled back. Housing starts slumped 9.8% month-over-month to an annualized 1.366 million, down from December's 10-month high of 1.515 million.

Domestic Market:

The domestic equity benchmark indices closed near the flat line with a slight negative bias on Wednesday, as investor sentiment was weighed down by growing anxieties over potential US tariffs. The Nifty settled below the 22,950 mark after hitting the day's high of 23,049.95 in morning trade, reflecting a cautious mood among market participants. Despite the subdued performance of the major indices, broader market indices witnessed strength, driven by bargain hunting in previously beaten down stocks. The S&P BSE Sensex shed 28.21 points or 0.04% to 75,939.18. The Nifty 50 index lost 12.40 points or 0.05% to 22,932.90.

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