Indian Stock Market Faces Pressure Amid Global Economic Concerns
February 24, 2025
The Indian stock market is expected to open on a weaker note today, following negative global cues. Investors remain cautious due to concerns over international demand, potential trade tariffs, and persistent foreign portfolio outflows.
Market Opening and Global Influence
Global markets have faced volatility due to fears of slowing consumer demand and possible new tariffs imposed by major economies. This has affected Indian indices, with the Nifty 50 and Sensex expected to start lower. GIFT Nifty futures indicate a weak opening, signaling investor apprehension.
Rupee Under Pressure
The Indian rupee has been experiencing downward pressure, trading at approximately 86.71 against the US dollar. Foreign institutional investors have been pulling funds from the Indian market, contributing to the currency’s depreciation. The Reserve Bank of India (RBI) is set to conduct a $10 billion dollar-rupee swap on February 28 to ease liquidity concerns and stabilize the currency.
Corporate Developments: PhonePe Plans IPO
Fintech giant PhonePe, backed by Walmart, has announced its plans to enter the Indian stock market. The company, which achieved profitability in the fiscal year 2024 with earnings of 1.97 billion rupees, has not yet provided a specific timeline for its initial public offering (IPO). The announcement has generated interest among investors looking for opportunities in the digital payments sector.
Stock Performance: ICICI Bank and Sensex Decline
ICICI Bank shares saw a decline of 1.41% in the last trading session, underperforming its peers. Meanwhile, the BSE Sensex dropped by 0.56%, continuing its recent downward trend. The overall market has been on a declining trajectory since mid-December 2024, registering a fall of nearly 7.5%.
Foreign Investment Trends
One of the primary reasons for the market downturn has been the exit of foreign investors, who are reallocating their capital to other emerging markets, including China. This trend has raised concerns about liquidity and market stability in the short term.
Outlook for Investors
Market analysts suggest that volatility may persist in the coming weeks, with key economic data releases and global policy decisions playing a crucial role. Investors are advised to remain cautious and focus on fundamentally strong stocks while navigating uncertain market conditions.
The coming days will be crucial for the Indian stock market, as traders and investors await further cues on economic policies, corporate earnings, and global market trends.
Stay tuned for more updates on the Indian stock market