Indian equity benchmarks are expected to open cautiously as investors await clarity on U.S. President Donald Trump's trade policies and the outcome of Ukraine peace talks. Additionally, market participants will closely monitor February's manufacturing and services PMI flash data, along with the RBI MPC minutes, set to be released later today.

Key Market Factors to Watch:

• Foreign Fund Outflows Persist: Foreign Institutional Investors (FIIs) offloaded Indian equities worth RS 3,311.55 crore on February 20, 2025.

• India’s Growth to Slow in 2025: Moody’s Analytics projects India’s GDP growth will slow to 6.4% in 2025, down from 6.6% in 2024, due to new US tariffs and weakening global demand impacting exports.

• Government’s Push for Industrial Growth: Commerce and Industry Minister Piyush Goyal reiterated the government's commitment to fostering business and innovation, highlighting the development of 20 industrial smart cities.

• India on Track to Become High-Income Nation by 2047: A private report predicts India will reach high-income status by 2047, with a projected GDP between $23 trillion and $35 trillion, driven by the services sector.

• Automotive Component Industry in Focus: Credit rating agency ICRA anticipates the Indian automotive component industry to grow by 8-10% in FY26, despite concerns over a potential 25% tariff on US imports.

Global Market Trends:

• US Markets End Lower: Wall Street closed in the red on Thursday after a weak forecast from a major retailer raised concerns about consumer spending.

• Asian Markets Trade Higher: Led by Chinese tech stocks, Asian markets rallied on Friday after Alibaba Group posted its strongest revenue growth in over a year.

Indian Market Performance:

Indian indices pared early losses but closed slightly lower on Thursday amid fresh tariff concerns, weak Asian cues, and foreign fund outflows. The BSE Sensex declined 203.22 points (0.27%) to 75,735.96, while the Nifty 50 slipped 19.75 points (0.09%) to 22,913.15.

Other Key Market Developments:

• Global Economy Growing at a Moderate Pace: The RBI's February bulletin noted that global economic growth remains steady but moderate, with varying outlooks across nations amid rapid political and technological shifts.

• Trump’s Tariff Plans Impact Markets: Trump's move to impose 25% tariffs on automobiles, semiconductors, and pharmaceuticals led to a decline in Indian pharma stocks, as the US remains a key export market.

• Indian Rupee Gains Strength: The rupee appreciated by 34 paise to trade at 86.64 per US dollar, supported by a weakening American currency in global markets.