Market Analysis (Nifty 50) 12August' 2025

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Market Analysis (Nifty 50) 12August' 2025

(FIIs remain net sellers, India halts U.S. defense deals amid tariffs, Dow surges 400+ points on inflation data and Fed rate cut hopes)

Foreign Institutional Investors (FIIs) remain consistent net sellers in the Indian equity markets, with a clear trend of capital withdrawal and redeployment into other Asian economies offering more attractive valuations and growth opportunities. Their participation in the derivatives segment is significantly subdued, indicating a lack of confidence in near-term market momentum. Data-driven sentiment indicators continue to point towards a bearish undertone.

On the geopolitical front, India has temporarily halted several major defense procurements from the United States, including Stryker combat vehicles, Javelin missiles, and Boeing aircraft. This decision coincides with the imposition of steep 50% tariffs on Indian oil imports from Russia — the highest rate among major trading partners — intensifying trade tensions and potentially impacting future bilateral defense and economic agreements.

Meanwhile, in the U.S., equity markets rallied sharply as the Dow Jones Industrial Average surged over 400 points following an encouraging inflation report. The data strengthens market expectations that the Federal Reserve will proceed with an interest rate cut, providing a potential boost to global liquidity and risk appetite in the short term. However, whether this positive sentiment will translate to Indian markets remains uncertain given prevailing domestic and geopolitical headwinds.

Disclaimer

This market analysis is for informational and educational purposes only and should not be considered as investment advice. Market conditions are subject to change without notice. Investors should conduct their own research or consult a qualified financial advisor before making any investment decisions. The author and publisher are not responsible for any losses incurred from the use of this information.

Location: Ludhiana, Punjab, India

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