The Indian market, which has repeatedly failed to rebound, is expected to start weak again today. There is nothing in global markets to drive a surge.
A report that non-performing assets in microfinance loans have reached record levels could impact today's market. The Reserve Bank's decision to lower provisioning requirements for NBFC loans will benefit banks. However, the lack of significant progress in India's free trade agreement talks with the European Union could disappoint investors.
In the derivatives market, Gift Nifty closed at 22,586 on Tuesday and is at 22,585 this morning, indicating that the Indian market will likely start in the red.
European markets ended higher on Tuesday and Wednesday, supported by strong corporate earnings and a conservative victory in the German elections. However, Donald Trump's announcement of a 25% tariff on European cars could impact sentiment.
On Tuesday, the Dow Jones rose 159.95 points (0.37%) to close at 43,621.20. The S&P 500 fell 28 points (0.47%) to 5955.25. The Nasdaq Composite dropped 260.57 points (1.35%) to 19,026.40.
On Wednesday, the Dow Jones fell 188.04 points (0.43%) to 43,433.12, while the S&P 500 edged up 0.81 points (0.01%) to 5956.06. The Nasdaq gained 48.88 points (0.26%) to close at 19,075.26.
This morning, US futures were mixed, with the Dow down 0.11%, while the S&P 500 and Nasdaq are up 0.05% and 0.02%, respectively.
Nvidia, a key player in AI, posted better-than-expected earnings, with profits growing 78%. The company expects even stronger business growth in 2025. However, Salesforce’s earnings were disappointed.
Asian markets opened higher, with Japan up 0.15%. Hong Kong stocks, which surged the previous day, continued to climb.
The Indian market moved in different directions on Tuesday. While the Sensex rebounded after five days of losses, the Nifty remained in the red for the sixth straight session. Midcap and smallcap indices also fell.
Nifty closed 5.80 points lower (0.03%) at 22,547.55.
Sensex gained 147.71 points (0.20%) to end at 74,602.12.
Bank Nifty declined 43.60 points (0.09%) to 48,608.35.
Midcap index fell 0.62% (310.95 points) to 49,702.15.
Smallcap index dropped 0.44% (68.70 points) to 15,408.60.
Foreign investors sold ₹3,259.10 crore worth of equities in the cash market, while domestic institutional investors bought ₹3,030.78 crore.
The market breadth remained weak, with 1,636 stocks advancing and 2,313 declining on the BSE. On the NSE, 1,112 stocks rose while 1,685 fell.
Despite expectations of a pullback rally, bears continue to dominate. Momentum indicators signal a potential rebound, but overall sentiment remains bearish. If a rally occurs, Nifty could rise to the 22,700–22,800 range; otherwise, it may drop to 22,400–22,300. Support is seen at 22,520 and 22,450, while resistance lies at 22,600 and 22,675.
Tata Capital is set to launch an IPO soon to meet RBI regulations. The issue will include 2.3 billion new shares along with some secondary sales, with an estimated IPO size of ₹15,000 crore. Tata Sons, which holds a 93% stake, will retain 75% post-listing.
Ahead of the IPO, Tata Capital will raise ₹1,504 crore through a rights issue, with Tata Sons investing ₹1,429 crore. In the grey market, Tata Capital shares are expected to be priced at around ₹1,000 each, valuing the company at ₹3.7 lakh crore.
Following the IPO announcement, Tata Investment Corporation, a major shareholder in Tata Sons, surged 7% on Tuesday.
Muthoot Finance has received RBI approval to open 115 new branches. The central bank has also mandated secure vaults for gold storage.
SpiceJet posted a net profit of ₹20.4 crore in Q3, a significant improvement from last year’s ₹299 crore loss, though revenue declined 35%.
Gold prices remain under pressure due to profit-taking at high levels. On Tuesday, gold fell sharply to $2,915.20 per ounce. By Wednesday, it recovered slightly to $2,917.00. This morning, gold rose to $2,918 per ounce.
In Kerala, gold surged ₹160 per sovereign to a record ₹64,600 on Tuesday, before dropping ₹200 to ₹64,400 on Wednesday.
Silver fell to $31.87 per ounce.
The US dollar index, which closed at 106.31 on Tuesday, rose to 106.56 this morning. The rupee fell sharply on Tuesday, depreciating 52 paise to close at ₹87.21 per dollar.
Crude oil prices are falling amid hopes that moves to end the Ukraine war could lead to the easing of sanctions on Russia. Brent crude fell to $73.02 per barrel on Tuesday and closed at $72.79 on Wednesday. This morning, Brent is at $72.76, while WTI crude is at $68.82. UAE’s Murban crude is trading at $74.61.
Cryptocurrencies continue to decline, wiping out gains from Trump's election victory. Bitcoin fell below $84,000.
Ether dropped below $2,330. Broader concerns over US economic growth and interest rates are weighing on the crypto market.
Base metals were mixed on Wednesday: Copper rose 0.90% to $9,448.10 per tonne. Aluminium fell 0.24% to $2,632.50. Zinc (+0.55%), lead (+1.48%), and nickel (+1.57%) gained, while tin declined 0.36%.
Sensex 30: 74,602.12 (+0.20%)
Nifty 50: 22,547.55 (-0.03%)
Bank Nifty: 48,608.35 (-0.09%)
Mid cap 100: 49,702.15 (-0.62%)
Small cap 100: 15,408.60 (-0.44%)
Dow Jones: 43,621.20 (+0.37%)
S&P 500: 5,955.25 (-0.47%)
Nasdaq: 19,026.40 (-1.35%)
Dollar: ₹87.21 (+₹0.52)
Dollar index: 106.31 (-0.28)
Gold (ounce): $2,915.20 (-$39.30)
Gold (sovereign): ₹64,600 (+₹160)
Brent crude: $73.02 (-$1.90)
February 26, Wednesday
Dow Jones: 43,433.12 (-0.43%)
S&P 500: 5,956.06 (+0.01%)
Nasdaq: 19,075.26 (+0.26%)
Dollar index: 106.51 (+0.20)
Gold (ounce): $2,917.00 (+$1.80)
Gold (sovereign): ₹64,400 (-₹200)
Brent crude: $72.79 (-$0.23)
