GIFT NIFTY futures suggest a rough opening for Indian markets on February 27, as global market cues remain mixed. On the other hand, Chinese markets continue to outperform their global counterparts, with both Chinese and Hong Kong markets trading in the green on Thursday morning.
The GIFT NIFTY futures traded 33 points lower, indicating a cautious negative start for the Indian markets. Global market cues are mixed, as U.S. markets closed in the red, while Asian markets are trading lower on Thursday morning. Additionally, gold and crude oil prices have declined amid easing geopolitical tensions.
U.S. Market Overview
U.S. markets closed lower, with the Dow Jones dropping after President Donald Trump warned of 25% tariffs on European auto imports. Trump also confirmed that the 25% tariffs on Mexico and Canada would take effect starting April 2.
In contrast, Nvidia reported strong earnings, surpassing market expectations with a revenue jump of 80%, reaching $38 billion in the December quarter. Nvidia’s shares closed 3.6% higher on Wednesday night in anticipation of its earnings results.
Asian Market Performance
While the U.S. markets ended in the red, Chinese and Hong Kong markets continued their upward momentum, trading in the green on Thursday morning. In contrast, Japanese and Korean indices experienced minor losses. Chinese and Hong Kong indices are reaching multi-year highs, driven by structural changes such as increased liquidity inflows, a reduction in government crackdowns, a more inclusive business environment, and cheaper valuations.
Crude Oil Prices Drop
Crude oil prices have fallen to December lows due to a de-escalation in geopolitical risks related to the Russia-Ukraine war. The easing of sanctions on Russia is expected to increase global supply, and weaker economic conditions in the U.S. remain key headwinds for oil prices. Brent crude oil prices are near $73 per barrel, while WTI crude oil prices have dipped below $69 per barrel.
FII and DII Data
Foreign institutional investors (FII) sold ₹3,529 crore worth of Indian equities on Tuesday and maintained short positions of 2 lakh contracts in the derivatives market. Meanwhile, domestic institutional investors (DII) added ₹3,030 crore worth of equities.
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