Pre-Market Update: Navigating Global Resumption, Economic Data Headwinds and Nifty Expiry Volatility

Following the Presidents' Day holiday in the United States, which saw the New York Stock Exchange, Nasdaq, and bond markets closed in observance of Washington's Birthday, American markets are set to resume regular trading today at 9:30 AM ET. Performance leading into the long weekend was mixed; on February 13, the Dow Jones Industrial Average and the S&P 500 posted modest gains of 0.10 per cent and 0.05 per cent, respectively, while the Nasdaq Composite bucked the trend with a 0.22 per cent decline. Investors are returning to their desks today to digest these closing figures as they recalibrate for the remainder of the trading week.

In India, the setup for the day appears relatively flat to weak, as indicated by the GIFT Nifty trading at 25,648, down 16 points. The domestic economic landscape faces some headwinds following reports that India's merchandise trade deficit widened significantly to USD 34.68 billion in January, up from USD 25.04 billion in December. Furthermore, the unemployment rate rose slightly to 5 per cent in January, up from 4.8 per cent the previous month. With the Nifty weekly expiry occurring today, market participants should prepare for potential bouts of heightened volatility throughout the session.

On the corporate front, Bharat Electronics has made headlines by signing a Joint Venture with France’s Safran Electronics and Defence (SED) for Project HAMMER. This follows a strong performance during the previous session where the Sensex rose 0.79 per cent to 83,227 and the Nifty 50 climbed 0.83 per cent to 25,683. Notable gainers included Power Grid Corporation, Coal India, and HDFC Bank, while Bajaj Finance, Tech Mahindra, and Kwality Walls India Ltd lagged. Institutional activity on February 11 showed Foreign Institutional Investors (FIIs) as net sellers of Rs 972 crore, while Domestic Institutional Investors (DIIs) remained supportive with net purchases of Rs 1,667 crore.

Looking ahead at today's specific triggers, several companies including Sameera Agro and Infra, Binny, Creative Eye, Valecha Engineering, and Sparc Electrex are scheduled to release their financial results. In the commodities space, Gold is trading near USD 4,953 per ounce, Silver sits around USD 75.46 per ounce, and WTI Crude is priced at USD 63.57. Additionally, traders should note that Sammaan Capital and SAIL are currently under the F&O ban for today’s session

Disclaimer: The article is for informational purposes only and not investment advice.