The latest trends in the Indian stock market suggest a cautious start as investors take note of early Asian trading signals. This comes on the heels of a turbulent session in the US markets, which experienced declines for the second consecutive day due to the implementation of new tariffs. As of now, the GIFT Nifty indicates a subdued opening for Indian equity indices, reflecting the global economic climate.
Market Performance Overview
On Tuesday, the NSE Nifty 50 managed to end the day on a positive note, rising by 38 points or 0.17%, closing at 22,498. Conversely, the BSE Sensex faced a slight setback, dipping by 13 points or 0.02% to finish at 74,102.
Asian Markets React to US Trends
Despite the downturn on Wall Street, Asian markets showed a semblance of stability. Key highlights include:
- Japan’s Nikkei 225: Up by 0.03%, trading at 36,805.
- South Korea’s Kospi: Gained 1.33%, now at 2,571.
- Asia Dow: Down by 1.3%, standing at 3,649.04.
- Shanghai Composite: Held steady at 3,379.83.
This mixed performance comes as tariffs on Canadian steel and aluminum kick in today, marking a pivotal moment in international trade relations.
Impact of US Tariffs on Markets
The imposition of tariffs proposed by President Donald Trump had a significant impact on US markets. On Tuesday, the key indices recorded the following losses:
- S&P 500: Fell by 0.76%, closing at 5,572.07.
- Dow Jones Industrial Average: Dropped nearly 478 points or 1.14%, ending at 41,433.48.
- Nasdaq Composite: Decreased by 0.18%, finishing at 17,436.10.
Although Trump initially considered raising tariffs on Canadian metals to 50%, he later decided against this increase. Nonetheless, the 25% tariffs will proceed, effective from today.
US Dollar and Global Currencies
In currency markets, the US Dollar Index (DXY), which measures the dollar against six major currencies, rose slightly by 0.03% to 103.44. This increase reflects the dollar’s relative strength, particularly against currencies like the Euro and British Pound. The Indian rupee also showed some resilience, appreciating by 0.15%, closing at 87.21 to the dollar.
Crude Oil Prices on the Rise
On the commodities front, crude oil prices are experiencing upward momentum. As of Wednesday morning:
- WTI Crude: Trading at $66.71, a rise of 0.70%.
- Brent Crude: Priced at $69.92, up by 0.52%.
Foreign Institutional Investors and Domestic Activity
Recent data indicates that foreign institutional investors (FIIs) were net sellers, offloading shares worth ₹2,823.76 crore. In contrast, domestic institutional investors (DIIs) stepped in as net buyers, acquiring shares worth ₹2,001.79 crore on March 11, 2024.
Gold Prices Steady Amid Market Fluctuations
In the precious metals market, the price of 24-carat gold stands at ₹86,470 per 10 grams, reflecting a 0.31% increase over the past week and a 0.55% rise in the last month. The 22 kt gold is priced at ₹79,264, while 18-carat gold is available for ₹64,853.
In conclusion, as the global markets react to changing economic policies and tariff implementations, Indian investors will need to stay alert for further developments that could impact their portfolios.
