Opening Bell - 26 / 05 / 25

Opening Bell - Morning Commentary

Global shares breathe a sigh of relief as Trump delays European Tariffs - Indian markets are poised to open positively.

President Trump had initially planned to impose a 50% tariff on imports from the European Union, effective June 1, which had negatively impacted global markets. The reversal of this stance is now helping Western markets recover from their earlier decline.

US and European equity-index futures climbed alongside Asian stocks today after President Donald Trump extended the deadline on aggressive European tariffs, providing relief to international markets.

Shares of nuclear power companies closed higher on Friday following President Donald Trump's signing of executive orders aimed at jumpstarting the atomic energy industry in the United States.

The US dollar'*s value relative to a basket of other major currencies fell to its lowest level in four weeks, with the dollar *down nearly 9% year-to-date as of Friday.

The price of Bitcoin, the most widely traded cryptocurrency, climbed for the sixth consecutive week and hit a record high of nearly $112,000 last week, continuing its strong upward momentum.

India's GDP growth data, US Federal Reserve meeting minutes, and US inflation figures represent essential economic indicators scheduled for release this week that could significantly impact market sentiment.

India's Q4 GDP data, set to be released on May 30, will be crucial in determining whether the country's economy is gaining momentum or reaching a plateau in its growth trajectory.

The minutes from the May 6-7 US Federal Open Market Committee (FOMC) meeting will be closely analysed by investors and economists for insights into the Federal Reserve's future stance on interest rate policy.

Indian markets posted negative returns for the past week, with both the Sensex and Nifty declining nearly 1% each, driven by escalating global trade tensions, fiscal deficits, rising bond yields, and renewed fiscal concerns in major economies.

Geopolitical uncertainties, the ongoing earnings season, institutional capital flows, and derivatives expiry dates are serving as the primary drivers of volatility in Indian equity markets during this period.

Strong domestic demand, fuelled by recent tax cuts and recovering rural consumption due to an above-normal monsoon season, remains a key positive driver for India's economic growth prospects.

The Nifty's short-term trend remains positive as it trades above its 20-day exponential moving average. Immediate resistance levels are at 24,946 and 25,116, while support levels are identified at 24,748 and 24,685.

Indian equity markets are poised to open positively, buoyed by the relief generated from President Trump's decision to extend the deadline on European tariffs rather than implementing them immediately.