Indian equity benchmarks are expected to open with a gap-down as US President Donald Trump confirmed that tariffs on Canada and Mexico will take effect next week. Meanwhile, Foreign Institutional Investors (FIIs) sold equities worth RS 556 crore on February 27.

Key Market Factors to Watch:

India Must Push for Protective Provisions in EU Trade Deal
The Global Trade Research Initiative (GTRI) has urged India to include provisions in its proposed Free Trade Agreement (FTA) with the European Union to safeguard against the impact of the EU's carbon tax.

RBI Gets More Room for Rate Cuts Amid Inflation Moderation
The National Council of Applied Economic Research (NCAER) noted in its monthly review that inflation fell to a five-month low of 4.3% in January, giving the Reserve Bank of India (RBI) more flexibility to cut interest rates in its next policy meeting.

IMF Stresses Need for Structural Reforms in India
The International Monetary Fund (IMF) stated that while India is on track for sustained medium-term growth, key structural reforms in the judiciary, tariffs, and labor regulations are necessary for long-term stability.

Auto Stocks in Focus as Passenger Vehicle Sales Growth Slows
Ratings agency ICRA projects that passenger vehicle sales in India will grow at a moderate 4-7% in FY26, with demand drivers remaining mostly neutral or positive.

Aviation Stocks Shine Amid Surge in Air Traffic
The Directorate General of Civil Aviation (DGCA) reported that domestic air traffic rose 11.28% to 14.6 million in January compared to the previous year.

Global Market Overview:

US Markets Slide as Nvidia Weighs on AI Rally
Wall Street ended lower on Thursday as chipmaker Nvidia's earnings report failed to sustain the AI-driven rally. Investors also focused on data indicating a cooling U.S. economy.

Asian Markets Follow US Decline on Tariff Concerns
Asian markets are trading in the red on Friday after President Trump's confirmation that tariffs on imports from Mexico and Canada will take effect next week.

Indian Market Recap:

Indian equity indices ended flat on Thursday as investors braced for volatility ahead of the monthly derivatives expiry. The BSE Sensex rose 10.31 points to 74,612.43, while the CNX Nifty slipped 2.50 points to 22,545.05.

Other Key Market Trends:

FII Selling Pressure Continues
Foreign Institutional Investors (FIIs) offloaded equities worth RS 3,529.10 crore in the capital markets on a net basis on Tuesday, according to exchange data.

US Treasury Yields Climb
U.S. Treasury yields rose as investors analyzed further economic data and President Trump's latest tariff threats.

Crude Oil Prices Decline
Crude oil prices fell amid hopes for a potential peace deal between Russia and Ukraine, along with concerns over U.S. trade policies and their potential impact on global economic growth.