Opening Bell - Morning Commentary

Nvidia leads the market higher.

Nvidia helped fuel a tech rally that saw the AI darling jump by 1.8 per cent and become the first public company to reach a market capitalisation of $4 trillion.

Equity markets closed higher on Wednesday, following President Trump's announcement of new tariffs on seven countries. To date, President Trump has announced new tariffs on 21 countries this week, with tariff rates ranging from 20% to 40%. Trump was particularly harsh on Brazil, imposing a 50% duty on goods from Brazil.

The strength on Wall Street may partly reflect optimism about a potential trade agreement between the U.S. and the European Union. A news report indicated EU negotiators are closing in on a trade deal with the U.S. that would cement higher tariffs than those granted to the U.K.

Asian stocks rose slightly on Thursday, buoyed by optimism following Nvidia's brief surge to a world-record $4 trillion valuation, as investors largely shrugged off U.S. President Donald Trump's latest tariff announcements.

U.S. copper futures widened their premium to the London benchmark overnight as U.S. President Donald Trump ramped up his global tariff assault on Wednesday, announcing a new 50% tariff on U.S. copper imports, which will take effect on August 1.

The Federal Reserve released the minutes of its June monetary policy meeting, which revealed most participants generally agree the central bank is well-positioned to wait for more clarity on the outlook for inflation and the economy before adjusting interest rates.

The Fed's "wait and see" approach comes as participants said economic growth and the labour market remain solid and described monetary policy as moderately or modestly restrictive.

Back home, Nifty fell sharply in the last hour of trade yesterday, signalling profit booking. The session finally settled with a loss of 46 points (0.18%), closing at 25,476.

An attempt by the Nifty to surpass the previous session’s high failed, with the index turning southward after making a double top at 25,548. However, the Nifty managed to hold its level above the previous session’s low, indicating an ongoing consolidation within its primary uptrend. Support and resistance levels for the Nifty remain at 25,331 and 25,670, respectively. A decisive breakout from this range would give a directional view in the index.

Any progress in finalising trade agreements over the coming weeks and months should reduce uncertainty, while any flexibility in lowering tariffs should help contain inflation and growth concerns.

Indian markets are poised to open subdued, but are likely to witness higher volatility as the session progresses to negotiate weekly derivatives expiry and position ahead of a slew of quarterly results, starting with Tata Elxsi and TCS.