The domestic stock markets are bracing for another volatile week as lingering concerns over US tariffs and global economic headwinds continue to weigh on investor sentiment.
The market has been undergoing a correction for several months, with no clear bottom established, according to market analysts. Trump's proposed tariffs, persistent US inflation, and the Federal Reserve's cautious approach to rate cuts are key concerns spooking investors. The recent Union Budget and RBI policy announcements have failed to provide any positive momentum, and unfavorable global market cues have further dampened hopes for a near-term recovery.
The ongoing tug-of-war between foreign institutional investors (FIIs) and domestic institutional investors (DIIs) is also expected to play a crucial role. FIIs have been net sellers, offloading Indian equities worth Rs 30,588.82 crore this month, driven by renewed interest in rebounding Chinese stocks. Conversely, DIIs have been actively accumulating Indian equities, attempting to cushion the market's fall. The strength of the US dollar and fluctuations in crude oil prices will also be closely watched by market participants.
The Indian equity stock exchanges will reman shut on Wednesday, 26 February 2025, on account of Mahashivratri.
India's Q4 GDP data will release on Friday, 28 February 2025. The Indian GDP expanded by 5.4% from the previous year in the September quarter of 2024, slowing from the 6.7% expansion in the previous period.
Global Cues:
US Durable Goods Orders data for January will be released on Thursday, 27 February 2025. New orders for manufactured durable goods in the US fell 2.2% month-over-month to $276.1 billion in December 2024, following a downwardly revised 2% drop in November.
US Q4 GDP Second Estimate (QoQ) data will be released on Thursday, 27 February 2025. The advance estimate indicated an annualized growth rate of 2.3%, the slowest pace in three quarters, compared to 3.1% growth in Q3.
The US Core PCE Price Index (MoM) for January will be released on Friday, 28 February 2025. The core PCE price index in the US, which excludes volatile food and energy prices, rose by 0.2% from the previous month in December of 2024, in line with market expectations, and picking up slightly from the six-month low of 0.1% in the earlier month.
US Personal Income (MoM) data for January will be released on Friday, 28 February 2025. US personal income rose 0.4% month-over-month in December 2024, in line with market expectations and following a 0.3% increase in November.
US Personal Spending (MoM) data for January will be released on Friday, 28 February 2025. Personal spending in the United States rose by 0.7% from the previous month to an annualized rate of $20.387 trillion in December of 2024, following an upwardly revised 0.6% increase in November.