GIFT Nifty:

GIFT Nifty May 2025 futures were trading 80.50 points higher in early trade, suggesting a strong start for the Nifty 50.

In a relief to banks, the Reserve Bank of India has finalized its Liquidity Coverage Ratio (LCR) guidelines, reducing the proposed additional run-off factor on internet and mobile banking-enabled retail deposits to 2.5%, effective 1 April 2026. Under the new norms, stable and less stable retail deposits will now attract run-off factors of 7.5% and 12.5%, respectively. The RBI also lowered the run-off rate on wholesale funding from non-financial entities like trusts and LLPs to 40% from 100%, aiming to better reflect funding stability. These changes are expected to improve banks' LCR by about 6% while ensuring continued compliance with minimum regulatory requirements.

Institutional Flows:

Foreign portfolio investors (FPIs) bought shares worth Rs 1,970.17 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 246.59 crore in the Indian equity market on 21 April 2025, provisional data showed.

According to NSDL data, FPIs have sold shares worth Rs 19683.22 crore in the secondary market during April 2025 (so far). This follows their sale of shares worth Rs 6027.77 crore in March 2024.

Global Markets:

Dow Jones futures jumped 156 points early this morning, signaling a potential bounce-back for U.S. equities after a rocky start to the week.

Across Asia, markets were mostly in the green on Tuesday. But gains were kept in check after Wall Street stumbled, weighed down by President Trump intensifying his public pressure on Federal Reserve Chairman Jerome Powell'again raising eyebrows over the Fed's independence.

Meanwhile, tensions between Washington and Beijing flared up further. China slapped sanctions on several U.S. lawmakers, officials, and NGO leaders, accusing them of 'egregious behaviour' over Hong Kong-related issues. The move comes on the heels of U.S. sanctions imposed last month on Chinese and Hong Kong officials'an action that Beijing has strongly condemned, according to foreign ministry spokesperson Guo Jiakun.

Back in the U.S., all three major indexes slid overnight as investors digested Trump's Powell tirade and a lack of progress on global trade talks. The Dow tumbled 2.48%, the S&P 500 sank 2.36%, and the Nasdaq dropped 2.55%.

Powell, for his part, reminded everyone last week that the Fed's independence is not just tradition'it's a matter of law. Markets are now trying to parse whether Trump's threats are just more rate-cut rhetoric or something more serious.

Adding to the global gloom, a leading brokerage trimmed its global growth forecast on Monday. Blaming the ongoing tariff drama and mounting uncertainty from U.S. trade policy, it now expects global GDP to grow just 2.8% in 2025 and 3% in 2026'down 30 and 20 basis points, respectively, from previous estimates. One-third of the downgrade stems from the U.S., with the rest spread across China, Japan, and emerging markets.

Domestic Market:

Benchmark indices extended their winning streak for the fifth consecutive session today, supported by strong Q4 earnings from key private sector lenders. Investor sentiment remained positive, aided by continued foreign institutional inflows, with FIIs registering as net buyers for the third straight session.

The Nifty 50 settled at 24,125.55 with a gain of 273.90 points or 1.15%. The S&P BSE Sensex surged 855.30 points or 1.09% to end at 79,408.50. Over the past five trading sessions, the Sensex and Nifty have advanced 7.53% and 7.71%, respectively.

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