Indian Stock Market Update: 8 Key Factors Influencing Market Trends This Week

Gift Nifty indicates a weak opening; global cues remain negative amid Wall Street sell-off and weak US dollar

February 24, 2025: The Indian equity markets are expected to open lower on Monday, influenced by negative global cues and mixed domestic factors. Here’s an overview of the critical triggers that investors will be closely tracking:

1. Asian Markets Open Lower

Asian markets began trading in negative territory on Monday, extending Friday’s steep losses. Japan’s markets remain closed for a public holiday. South Korea’s Kospi fell by 0.71%, and Kosdaq was down 1.21%. Hong Kong’s Hang Seng index futures also pointed toward a weaker opening.

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2. Gift Nifty Indicates Weak Start

Gift Nifty traded at around 22,682, down nearly 140 points from the previous close of Nifty futures, suggesting a negative start for domestic indices.

3. Wall Street Sell-Off

U.S. stocks recorded their worst session of the year on Friday due to disappointing economic data, renewed tariff threats, and fears of weakening consumer demand. The Dow Jones dropped 748.63 points (1.69%), the S&P 500 declined 104.39 points (1.71%), and the Nasdaq Composite fell 438.36 points (2.20%). Major tech and healthcare stocks, including Tesla, Nvidia, and UnitedHealth, suffered significant losses.

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4. Declining U.S. Business Activity

The U.S. Composite PMI Output Index fell sharply to a 17-month low of 50.4 in February, down from 52.7 in January. This indicates weakening business activity in manufacturing and services sectors, adding to recession fears.

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5. U.S. Consumer Sentiment Hits New Low

U.S. consumer sentiment declined more than expected, falling to a 15-month low of 64.7 in February from January’s revised 71.7. Inflation expectations also surged, with households predicting a rise to 4.3%.

6. Gold Prices Steady Near Record High

Gold prices remained stable, hovering near record highs. Spot gold stood firm at $2,934.82 per ounce, with U.S. gold futures slightly lower at $2,950.10. The bullion had reached an all-time high of $2,954.69 earlier in the week.

7. Crude Oil Prices Slide

Brent crude fell by 0.27% to $74.23 per barrel, and U.S. West Texas Intermediate (WTI) crude futures dropped by 0.38% to $70.13, reflecting bearish sentiments around energy demand.

8. Weakening U.S. Dollar

The U.S. dollar continued its decline, enhancing the appeal of alternative assets. The euro strengthened by 0.46% against the dollar, trading at $1.0508, while sterling hovered near a two-month high at $1.2659. The Japanese yen also gained ground, reaching its strongest level in over two months at 148.85 per dollar.

Investors will also closely monitor India’s GDP growth data, expiry of February derivative contracts, further developments on U.S. tariffs, INR-USD exchange rates, and foreign institutional investor flows, alongside ongoing global macroeconomic cues.

Tags: Indian stock market, Gift Nifty, Asian markets, Wall Street sell-off, US economic data, gold prices, crude oil prices, US dollar, consumer sentiment, GDP data, market trends, investor sentiment, February derivatives expiry