Opening Bell - Daily Morning Commentary

Trump's Tariff Plans Weigh on Global Sentiment

US equity markets closed lower on Monday, with technology and consumer discretionary stocks leading the decline, reflecting a risk-off sentiment. President Trump confirmed that tariffs on Canada and Mexico will take effect next week after the 30-day pause implemented in early February expires.

The Nasdaq Composite fell more than 1%, with significant technology stocks creating the biggest drag as investors expressed concerns about demand for AI-supporting technology while awaiting results from market heavyweight Nvidia. The S&P 500 edged slightly lower, marking its third consecutive day of declines, while the Dow Jones managed to secure a marginal gain. The defensive healthcare sector led percentage gains, rising 0.75%, while technology was the biggest laggard, dropping 1.43%.

Asian stocks opened lower on Tuesday following US President Donald Trump's decision to restrict Chinese investments and implement tariffs on Canada and Mexico. This prompted investors to reduce their positions. The late-session decline in US markets further dampened sentiment.

The Indian rupee remained unchanged at 86.71 against the US dollar. Indian markets will be closed on Wednesday, February 26, in observance of Mahashivratri.

The Nifty extended its losing streak to a fifth consecutive session yesterday, yielding to weak global cues and dropping 242 points (1.06%) to close at 22,553—its lowest level since June 5, 2024. Immediate support for the Nifty is now anticipated at 22450, which coincides with the 76.4% Fibonacci retracement of the swing from 21,281 to 26,277. The previous support level of 22,800 is expected to reverse its role and serve as resistance.