Motilal Oswal Global Dashboard – February 2025

The Motilal Oswal Global Market Snapshot provides a quick glance at index performances and economy updates from the Indian & global markets.

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Indian Market Update

• The Nifty 500 Index declined by 7.88% in February 2025, reflecting contractions across multiple sectors.
• Consumer Discretionary and Industrials were the key contributors to the decline with returns of -1.51% and -1.34% respectively.
• The Broader market indices saw a downturn, the Nifty Microcap 250 stood at -14.32%. While Nifty 50 closed at -6%. These outcomes suggest that smaller-capitalization segments experienced comparatively larger adjustment.
• Factor-based strategies reflected broader market movement, while fixed-income instruments, including Nifty 5 yr. Benchmark G-Sec (+0.53%), exhibited relative stability.
• The observed market trajectory suggests a cautious sentiment among investors, potentially influenced by macroeconomic conditions, sector-specific developments, and global financial market trends.

Global Market Update

• The S&P 500 Index declined by -1.42% and the NASDAQ 100 by -2.76%.
• Developed markets displayed mixed movements, where Switzerland (+3.47%) and United Kingdom (+3.08%) registered gains, while Japan (-1.38%) showed a contraction.
• The Consumer Discretionary sector (-1.07%) and Communication Services (-0.62%) contributed significantly to the downtrend. Conversely, Consumer Staples (+0.30%) and Financials (+0.18%) showed resilience.
• Commodity markets experienced fluctuations, with Crude Oil declining by 3.82% and Silver by 1.49%, while Gold (+0.80%) registered increases.
• Cryptocurrency markets showed contraction, with Bitcoin down 22.72% and Ethereum down 33.64%.

Economic Indicators

• India’s inflation fell to 4.31% in January 2025 from 5.22%, approaching the RBI’s 4% target after four months above 5%. This trend reinforces the case for potential rate cuts, with the Repo rate at 6.25%.
• The US CPI inflation stood at 3%, reflecting marginal increase from 2.90% in the prior month.
• TREPS stood at 6.34%, while the 10-year bond yield was 6.77% showing stability from the previous month. US 10-year yield was 4.19%, moderating from 4.55% in the previous month, reflecting evolving market conditions.
• FII flows recorded -24,301, compared to -77,211 in the prior month, while DII flows stood at -13,100, shifting from an inflow of 5,758 previously.

Unemployment rate was 8.10%, showing a slight increase, while the PMI Composite index rose to 60.60, suggesting continued business activity.