Opening Bell - 13 / 01 / 2026

Opening Bell - Morning Commentary

S&P & Dow Hit New Records, US Trade Deal Hope Sparks 300-Point Nifty Rally

The S&P 500 and Dow registered record closing highs on Monday as technology stocks and Walmart gained, with investors largely dismissing concerns about the Justice Department's criminal investigation of Federal Reserve Chair Jerome Powell.

Stocks opened lower on the Powell news. The Justice Department's threat of indictment, ostensibly focused on Powell's congressional testimony regarding a building renovation project, heightened concerns about the Fed's independence.

Powell called the move a "pretext" to gain influence over interest rates that President Donald Trump has pressed to cut sharply since taking office in January 2025.

Credit card company stocks fell sharply on Monday after President Donald Trump proposed capping credit card interest rates at 10% for one year. Capital One Financial fell 8%, while Citigroup and American Express dropped 4%. JPMorgan Chase, Bank of America, and Wells Fargo each declined approximately 2%.

The dollar held its losses on Tuesday after the Trump administration opened a criminal investigation into Federal Reserve Chair Jerome Powell, threatening the central bank's independence and confidence in U.S. assets.

Japan's Nikkei average surged to a record high on Tuesday as markets caught up with Wall Street's recent two-day rally following a public holiday in Japan earlier this week.

Investors also bought Japanese equities on expectations of increased fiscal spending amid speculation that Japanese Prime Minister Sanae Takaichi may call an early election to bolster her coalition government's parliamentary majority.

Gold jumped 2.5% to an all-time high on Monday, while silver futures climbed 7.3% to a record level. The moves followed Federal Reserve Chair Jerome Powell's disclosure that he received Justice Department subpoenas regarding testimony on headquarters renovations, raising concerns about central bank independence.

Oil prices edged higher on Tuesday as heightened concerns about Iran and potential supply disruptions outweighed prospects of increased crude supply from Venezuela.

TCS and HCL Tech reported mixed quarterly results yesterday, with TCS keeping revenue and margin gains on a steady path while HCL Tech faced profitability pressures despite stronger topline growth.

The Nifty 50 broke its five-day losing streak, climbing 106 points to close at 25,790. The reversal came swiftly after 12:00 PM, when optimistic remarks from U.S. Ambassador Sergio Gor sparked a dramatic rally. His confirmation that India and the USA are actively finalising a trade deal triggered a sharp recovery of more than 300 points from the day's lows.

A sustained move above 25,800 could extend the rally toward the next resistance levels at the 50-day and 20-day DEMAs, positioned near 25,900 and 26,000, respectively. On the downside, the recent low of 25,473 may provide short-term support.

Indian markets are positioned to open modestly higher on positive global cues.