Indian Stock Market Update: Key Changes Overnight
Date: February 13, 2025 | By: Ankit Gohel
The Indian stock market is set to experience a cautious start today following a turbulent session that extended the market’s decline for the sixth consecutive day. As global cues continue to influence domestic trading, here’s a detailed look at what has changed overnight in the Indian markets.
Market Overview
As the trading day begins, the domestic equity benchmarks, the Sensex and Nifty 50, are predicted to open on a tepid note. The Gift Nifty is currently positioned around the 23,140 level, marking a premium of approximately 18 points over the previous Nifty futures close. This suggests a flat-to-positive opening, in contrast to the mixed performance seen in the US markets last night.
Previous Trading Day Recap
On Wednesday, the Indian stock market ended in the red, with the Sensex declining by 122.52 points (0.16%) to close at 76,171.08. The Nifty 50 settled down 26.55 points (0.12%) at 23,045.25. Reports from market analysts indicated substantial volatility throughout the session, with the markets initially plunging over 900 points before recovering some losses late in the day. Notably, profit-taking activities, particularly in the IT, banking, and auto sectors, contributed to the benchmark declines.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., noted that a combination of rising uncertainty in global markets, a falling rupee, and continuing fund outflows has forced investors to adopt a cautious trading stance, favoring safer equity options.
Global Market Cues
Performance of Asian Markets
Contrary to the dip seen on Wall Street, Asian markets opened positively this morning. Notably, Japan’s Nikkei 225 rose by 0.54%, while the Topix gained 0.52%. South Korea’s Kospi followed with a 0.34% increase, and the Kosdaq advanced by 0.45%. Hong Kong’s Hang Seng index is also anticipated to open higher, potentially providing an encouraging backdrop for the Indian market today.
Update from Wall Street
The US stock market’s performance was mixed following the release of inflation data that exceeded economists’ expectations. On Wednesday, the Dow Jones Industrial Average fell by 0.50%, closing at 44,368.56, while the S&P 500 saw a decrease of 0.27% to settle at 6,051.97. Conversely, the Nasdaq managed to gain marginally, closing up 0.03% at 19,649.95. Notable movements included Nvidia and Amazon shares falling over 1%, whereas CVS Health surged by 15%.
Economic Indicators
US Inflation Data
In a recent inflation report, US consumer prices surged more than expected in January, with the Consumer Price Index (CPI) climbing by 0.5% month-over-month and 3.0% year-over-year. This is up from 2.9% in December. These figures added to investor anxiety regarding potential economic tightening and impact on global markets.
Domestic Economic Context
In India, the retail inflation rate decreased to a five-month low of 4.31% in January, largely attributed to falling food prices. Comparatively, the inflation rate stood at 5.22% in December and 5.1% in January 2024. Meanwhile, industrial production growth has slowed, registering a 3.2% rise in December 2024, down from 4.4% a year earlier.
Political and Economic Developments
In noteworthy geopolitical news, US President Donald Trump announced intentions to impose reciprocal tariffs on countries that charge duties on US imports. This move has raised concerns among businesses in India, particularly as the administration has expressed issues with the country’s high tariffs limiting US market access.
Gerome Powell, Chairman of the US Federal Reserve, remarked that while there has been significant progress toward managing inflation, further efforts are needed to achieve targeted goals.
International Market Instruments
Commodity and Currency Movements
Gold prices experienced a slight increase, trading at $2,905.12 per ounce as of today, bouncing back after recent declines. Meanwhile, crude oil prices witnessed significant drops following discussions between President Trump and President Putin regarding ending the Ukraine conflict, contributing to market instability.
As global markets continue to impact local trading dynamics, investors and analysts alike will be closely monitoring developments to inform their strategies in the days ahead.
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