Midcap stocks faced heavy selling in February, dropping up to 30% as investors booked profits and cut losses. Global concerns, including Trumps tariff threats and US slowdown fears, along with weak Q3FY25 earnings, weighed on sentiment. The BSE Midcap index plunged 10%, with 123 of 132 stocks ending in the red. Key losers included RVNL, Tube Investments, IREDA, and Mphasis.
India's foreign exchange reserves surged to a two-month high of $640.5 billion as of February 21, with an increase of nearly $5 billion in a week. The Reserve Bank of India's data showed foreign currency assets, the largest component of reserves, rising by $4.25 billion. This marks a recovery from the reserves' dip influenced by market sell-offs earlier.
The Reserve Bank of India bought bonds worth 40,000 crore through open market operations to increase liquidity in the banking system. This brings their total bond purchases in February to 80,000 crore. Market participants anticipate further liquidity injections through similar operations or repo auctions. RBI had also made significant bond purchases in January.
The Reserve Bank of India's dollar-rupee buy-sell swap saw strong demand but resulted in a lower-than-expected cut-off premium, leading to further rupee depreciation. The $10 billion swap, oversubscribed by $16.23 billion, will reverse in March 2028. Market participants expect continued weakness in the rupee as the RBI focuses on meeting the credit market's rupee liquidity needs.
Wall Street's momentum trade driven by tech, communications, and consumer discretionary sectors is faltering due to concerns over shrinking growth and trade uncertainties. Safe havens like health care and consumer staples are now leading the market as investors pivot defensively amidst the rising economic volatility.
In 2010, a photo of Kabosu, a Shiba Inu, became a viral internet meme called 'DOGE.' Elon Musk has since adopted this meme culture, infusing it into his social media and branding efforts, using outdated internet slang to connect with followers while promoting his political and business ambitions.
The Nifty index experienced its longest five-month decline since its inception, falling around 14% from October to February. This recent downturn is notable, though not as severe as the 22% drop during a similar period in 2001.
The Department of Homeland Security has requested the IRS to turn over addresses of 700,000 immigrants aimed for deportation, raising taxpayer privacy concerns. The IRS has resisted due to legal issues. This highlights administration efforts to use tax data for immigration enforcement, despite potential breaches of privacy laws.
Panama is holding over 100 asylum-seekers in a camp by the Darién jungle, blocked from legal aid and journalists. These migrants, deported from the U.S., face uncertain futures and legal limbo. Officials claim international aid management, yet critiques grow over the conditions and legality of this detention, highlighting a regional migration crisis.
The global community, particularly European leaders, showed overwhelming support for Ukrainian President Volodymyr Zelenskyy after a tense Oval Office confrontation with President Trump and Vice President Vance. The dispute highlighted divisions between the U.S. and its allies over backing Ukraine against Russian aggression.
