Opening Bell - Morning Commentary

Cautious Mood on D-street – Markets to open lower on weak global cues

Major U.S. indices retreated during the holiday-shortened week, with sharp losses in the latter half erasing early gains. Walmart's conservative guidance for the upcoming year triggered broader concerns about consumer spending and economic health. Market sentiment further deteriorated amid uncertainty surrounding tariffs and interest rate cuts. Markets were rattled by Trump's announcement of planned additional tariffs on automobiles, pharmaceuticals, and lumber products.

The Dow Jones Industrial Average and Nasdaq Composite both declined 2.5%, while the S&P 500 fell 1.7% for the week. Geopolitical developments dominated headlines, particularly President Donald Trump's diplomatic efforts to end the Russia-Ukraine conflict.

Asia market opened lower today after Wall Street logged its worst session of the year last Friday on lacklustre U.S. economic data that pointed to a slowing economy and sticky inflation.

Zomato and Jio Financial Services will replace Britannia Industries and Bharat Petroleum Corporation in the Nifty 50, effective March 28.

Indian markets are likely to open weak following soft global cues, particularly the sharp decline in U.S. markets on Friday. This potential weakness could push indices below crucial support levels of 22700. Any breach of near-term technical supports might trigger additional selling pressure, potentially driving the Nifty towards the 22450 level. The broader market indices - midcap and small cap are positioned near crucial long-term supports. Market sentiment is cautious amid heightened uncertainty surrounding trade relations and geopolitical tensions.