February 23, 2025
Markets at Eight-Month Lows Amid Volatility
Indian equity markets ended the week on a volatile note with a negative bias, as the Nifty slipped to its lowest level in eight months. The broader sentiment remained weak amid foreign institutional investor (FII) outflows and sectoral rotation.
🔹 FII Net Sellers: ₹7,794 crore
🔹 DII Net Buyers: ₹16,557 crore
While FIIs continued to offload Indian equities, domestic institutional investors (DIIs) stepped in with strong buying, cushioning the market from deeper losses.
🔹 Sectoral Performance
Despite the overall market weakness, select sectors outperformed, while others faced selling pressure:
✔ Gaining Sectors:
• Metals, Engineering, and PSU Banks showed resilience, buoyed by strong demand and policy tailwinds.
❌ Losing Sectors:
• Auto and Pharmaceuticals saw selling pressure, impacted by weak earnings and subdued demand expectations.
🚀 Stock of the Week
🔹 NTPC, Shriram Finance, and Hindalco emerged as the top-performing stocks, benefiting from strong earnings and sectoral momentum.
Meanwhile, Jio Financial Services and Zomato have been included in the Nifty 50 derivatives and futures & options (F&O) segment, further enhancing liquidity and investor interest.
📊 Outlook for the Coming Week
Despite near-term volatility, the broader outlook for the Indian markets remains positive, supported by economic indicators and policy expectations:
✅ India’s PMI at an 11-Month High – Signaling robust economic activity.
✅ RBI Expected to Cut Interest Rates Further – Supporting growth in rate-sensitive sectors.
✅ US PMI at a 17-Month Low – Raising concerns over global demand.
✅ Federal Reserve Likely to Pause Rate Cuts – Due to persistent inflation risks.
With mid and small-cap stocks showing strong fundamentals, there remains a high potential for further upside in these segments.
🌎 Key Global Developments to Watch
📌 S&P Global Ratings: India is less impacted by proposed US tariffs, primarily due to strong domestic demand.
📌 PMI Data Releases: Key economic indicators from India, the US, Europe, and China will set the tone for global markets.
📌 German Elections: Political developments in Europe’s largest economy could impact investor sentiment globally.
📈 Sectors to Watch
🔹 Metals & Oil – Driven by global demand recovery and supply constraints.
🔹 Infrastructure – Boosted by increased government spending.
🔹 NBFCs & PSU Banks – Likely to benefit from robust economic conditions and potential RBI rate cuts.
🔹 Defense – Strong quarterly earnings suggest continued sectoral strength.
Additionally, gold extended its winning streak for the eighth consecutive week, reflecting investor preference for safe-haven assets amid global uncertainties.
📊 Market Trends & Technical Insights
📍 Nifty Consolidation Range: 22,700 – 23,000
📍 Bank Nifty Expected Move: 48,500 – 49,500 (1,000-point range)
📍 Mid & Small Cap Momentum Continues – Investors are finding attractive opportunities in fundamentally strong stocks.
For an in-depth analysis of market trends, watch our latest YouTube video where our experts provide insights on key levels, sectoral trends, and investment opportunities.
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