GIFT Nifty hints at negative opening; Trump fires Fed Governor Lisa Cook

GIFT Nifty:

GIFT Nifty August 2025 futures were currently trading 25.50 points (or 0.10%) lower, suggesting that the Nifty 50 could open mildly in the red today.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 2,466.24 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 3,176.69 crore in the Indian equity market on 25 August 2025, provisional data showed.

According to public data, FPIs have sold shares worth Rs 28,217.26 crore in the cash market during August 2025. This follows their cash sales of shares worth Rs 47,666.68 crore in July 2025.

Global Markets:

Asia-Pacific markets mostly fell Tuesday, as investors weighed U.S. President Donald Trump?s escalatory rhetoric on tariffs.

President Donald Trump was quoted by the media on Monday that China has to give the United States magnets or we have to charge them 200% tariff or something amid a trade dispute between the two nations.

The US President vowed Monday to impose ?substantial? new tariffs and restrict U.S. chip exports for all countries that do not remove digital taxes and related regulations.

Donald Trump on Monday fired Federal Reserve Governor Lisa Cook, an unprecedented and significant escalation of his attacks on the U.S. central bank?s independence over its refusal to cut interest rates quickly.

President Trump, in a termination letter to Cook posted on a social media platform, reportedly cited allegations that she had made false statements on applications for home mortgages.

Wall Street stocks ended lower on Monday as investors parsed the outlook for U.S. interest rates. The S&P 500 declined 0.43% to end the session at 6,439.32 points. The Nasdaq declined 0.22% to 21,449.29 points, while the Dow Jones Industrial Average declined 0.77% to 45,282.47 points.

U.S. Federal Reserve Chair Jerome Powell hinted at the Jackson Hole Symposium that an interest-rate cut could be considered at the central bank's September meeting, citing recent labor market weakness.

These comments from Powell nudged major global research houses to reportedly revise their expectations, with some of them currently seeing a 25-basis-point reduction in borrowing costs next month.

Domestic Market:

The domestic equity benchmarks closed higher on Monday, led by a rally in IT stocks after U.S. Federal Reserve Chair Jerome Powell signaled that rate cuts could begin as early as September. Speaking at the Jackson Hole symposium on Friday, Powell noted rising risks to the U.S. labor market even as inflation pressures persisted, sparking hopes of easier monetary policy.

Lower U.S. borrowing costs typically boost appetite for emerging-market assets, with India among the key beneficiaries. However, investor sentiment remained cautious ahead of fresh U.S. tariffs on Indian goods. President Donald Trump?s additional 25% levy, set to take effect on August 27, could raise duties as high as 50%.

While large-cap IT stocks drove the day?s gains, mid- and small-cap shares gave up early advances, reflecting concerns over domestic demand headwinds. The Nifty 50 managed to hold above the 24,950 level at close, marking a steady start to the week.

The S&P BSE Sensex advanced 329.06 points or 0.40% to 81,635.91. The Nifty 50 index rose 97.65 points or 0.39% to 24,967.75.

Powered by Capital Market - Live News