First Tick: Key Global Cues to Watch for Today’s Trade
First Tick : Indian benchmark indices, Sensex and Nifty 50, are expected to open on a flat note on February 18, tracking global market movements. As of this morning, GIFT Nifty is trading around 23,006.00, suggesting a muted start for domestic equities.
On February 17, Indian markets managed to snap an eight-day losing streak, closing slightly higher despite a volatile session. The Nifty settled at around 22,959.50, supported by gains in pharma, metal, and financial stocks. The Sensex closed at 75,996.86, up 57.65 points or 0.08 percent, while the Nifty gained 30.25 points or 0.13 percent.
As we step into a new trading day, let’s take a look at the top global cues shaping market sentiment.
Global Market Overview
GIFT Nifty (Flat Start Expected)
The GIFT Nifty is trading flat, signaling a cautious opening for Indian markets. As of 7:10 AM IST, Nifty futures were at 23,006.00.
Asian Markets (Mixed Trend)
Asian markets are displaying a mixed trend ahead of the Reserve Bank of Australia’s policy decision. Defense-related stocks drove a rally in European markets on Monday, but Asian stocks remain subdued due to global economic uncertainties.
US Markets (Closed for Holiday)
Wall Street remained closed on Monday in observance of Presidents Day, leaving global investors without fresh cues from the US equity markets.
US Bond Yields (Rise in 10-Year Yield)
The 10-year US Treasury yield climbed 56 basis points to 4.5 percent, reflecting caution among investors. However, the 2-year Treasury yield remained stable. Rising bond yields could impact equity market sentiment, especially in emerging economies.
Dollar Index (Slight Gains)
The US dollar hovered near a two-month low as traders analyzed the potential impact of tariffs and the Federal Reserve’s monetary policy outlook. Meanwhile, the Australian dollar remained close to a two-month high despite growing speculation about an impending rate cut.
Asian Currencies (Mostly Down)
Apart from the Indonesian Rupiah, most Asian currencies traded lower on Tuesday morning. However, on a year-to-date basis, the Japanese Yen emerged as the strongest performer, followed by the South Korean Won, Thai Baht, and Singapore Dollar.
Crude Oil Prices (Gains on Supply Concerns)
Crude oil prices extended gains after a drone attack on an oil pipeline pumping station in Russia disrupted flows from Kazakhstan. Brent crude hovered near recent highs as geopolitical tensions added to supply-side concerns.
Gold Prices (Flat)
Gold prices remained steady as traders monitored geopolitical developments and trade policy moves from the US government. The precious metal held onto its recent gains, providing a safe-haven appeal in uncertain times.
Institutional Fund Flows
Foreign and Domestic Investments
- Foreign institutional investors (FIIs) continued their selling spree, offloading equities worth ₹3,937 crore on February 17.
- Domestic institutional investors (DIIs), however, countered this selling pressure by purchasing equities worth ₹4,759 crore.
The contrasting activity between FIIs and DIIs indicates that while foreign investors remain cautious, domestic players are seeing opportunities in Indian equities.
Key Takeaways for Today’s Trade
- Muted Opening Expected – GIFT Nifty suggests a flat start for Sensex and Nifty 50.
- Asian Markets Show Mixed Sentiment – Investors are awaiting the Australian central bank’s policy stance.
- US Bond Yields on the Rise – Higher yields may impact market liquidity and investor risk appetite.
- Crude Oil Gains – Supply disruptions in Russia may keep energy stocks in focus.
- Institutional Flows Remain Divided – FIIs continue selling, while DIIs provide buying support.
Financial Ratios of Nifty 50 (Key Metrics for Investors)
| Ratio | Value | Significance |
|---|---|---|
| P/E Ratio (TTM) | 22.8 | Indicates market valuation based on earnings. |
| P/B Ratio | 3.85 | Shows how much investors are paying for each rupee of book value. |
| Dividend Yield (%) | 1.3 | Represents returns from dividends relative to share price. |
| ROE (%) | 14.5 | Measures profitability in relation to equity capital. |
| Debt-to-Equity Ratio | 0.75 | Indicates financial leverage and company risk. |
Final Thoughts
As markets prepare for today’s trade, investors should remain cautious given the mixed global signals. While positive domestic cues, such as DIIs’ continued buying, offer some stability, external factors like rising US bond yields and global geopolitical tensions may influence investor sentiment.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.