Stock Market Updates

Semiconductors Slide in the US, Nifty Bleeds on Austerity Measures, Govt. Hikes Import Duty on Bullion.Major U.S. stock indexes pulled back from recent all-time highs as a massive surge in semiconductor and artificial intelligence stocks lost momentum. The tech-heavy Nasdaq Composite and the S&P 500 both ended Tuesday lower, with notable declines in large-cap chipmakers like Micron and AMD following a period of extreme outperformance.Consumer price index data for April showed an annual inflation rate of 3.8%, surpassing forecasts and marking the highest level since May 2023. This persistent price growth, driven largely by energy costs, has led market participants to price out immediate rate cuts and instead increase bets on potential Federal Reserve interest rate hikes later this year.Oil prices continue to climb amid unresolved U.S.-Iran tensions, with President Trump dismissing Iran's peace proposal and calling ceasefire talks on 'life support.'Intel fell 10% to around $116, and AMD dropped 5% to approximately $436 on Tuesday, pulling back sharply after Intel surged 35% and AMD gained 34% in just the prior week. The Q1 2026 earnings season is proving exceptionally robust, with approximately 84% of S&P 500 companies reporting results that exceed analyst estimates. The Indian rupee extended its losing streak to a third day, hitting an intraday record low of 95.74 amid general weakness in Asian markets. The depreciation is largely attributed to anxieties over elevated crude oil prices and their adverse impact on the fiscal deficit. Combined with rising risk aversion and sustained foreign capital outflows, these factors have positioned the rupee as the worst-performing Asian currency so far this year.Nifty witnessed a sharp and broad-based sell-off, declining for the fourth consecutive session and ending 436 points lower at 23,379, marking its steepest single-day fall of the current financial year. Nifty has now surrendered over 1,100 points from its recent swing high of 24,482 in just four days. Sectoral performance was overwhelmingly negative, with the Nifty IT and Realty indices each crashing by roughly 4%. IT majors like TCS and Infosys reached new annual lows, pressured by concerns over AI-led service disruptions and a general retreat from growth stocks amid unfavourable global cues.In a strategic move to curb imports and support the falling rupee, the Indian government increased the import duty on gold and silver to 15%. This policy adjustment aims to protect foreign exchange reserves and narrow the widening trade deficit caused by high energy prices and sustained capital outflows.Nifty is now placed below its key short-term averages. The earlier support level of 23800 is now expected to act as a resistance on any pullback. On the downside, immediate support is placed near 23100.Indian markets are likely to open flat on subdued global cues.

The U.S.-Iran Ceasefire on the Edge of Collapse, Markets to shift focus to US-China SummitThe S&P 500 and Nasdaq closed at fresh all-time highs - 7,412 and 26,274, respectively — as strength in technology and semiconductors outweighed investor unease over the collapse of Iran ceasefire talks.Market sentiment remains buoyed by the belief that the AI supercycle is in its early stages, with major firms like Micron reaching new record levels.After President Trump rejected Tehran's counterproposal as "totally unacceptable," Brent crude surged to $105 per barrel. The 10-year Treasury yield climbed to 4.41% as markets repriced for inflation risk ahead of Tuesday's April CPI release, which economists expect to show a 3.7% year-over-year gain. The euro held flat against the dollar at $1.18, repeatedly testing but failing to clear that resistance level, with currency markets effectively in a holding pattern until the inflation print.President Trump and Xi Jinping are set for sweeping talks covering Iran, nuclear policy, trade, and AI — one of the most consequential U.S.-China summits in years. The breadth of the agenda signals a deliberate thaw, with both sides engaging across every major axis of strategic and economic tension. Executives from Apple, Boeing, Citi, Tesla, and Meta are joining Trump in China, one of the most significant corporate delegations ever to accompany a sitting president. Their presence confirms that trade normalisation and market access sit at the heart of the U.S. agenda. The outcome of the summit could materially shift global markets, energy dynamics, and the AI race simultaneously.The Indian rupee began the week on a weak footing, depreciating by 83 paise to close at a record low amid escalating geopolitical tensions. The decline was primarily driven by a breakdown in U.S.-Iran peace negotiations, which led to a surge in crude oil prices and strengthened the U.S. dollar’s safe-haven appeal. Domestic sentiment was further dampened by Prime Minister Modi’s “Nation First” austerity call, urging reduced fuel consumption and postponement of non-essential foreign travel to conserve foreign exchange reserves.Nifty extended its losing streak for the third consecutive session, declining sharply by 360 points to settle at 23815, weighed down by rising crude prices and a weakening rupee. Nifty is likely to breach the critical support level of 23,800 at the open. The next strong support comes in at the 23,550-23500 range. On the upside, the 24000–24125 zone is expected to serve as immediate resistance.Indian markets are likely to open lower today on weak global cues.

Market Summary: Global Records vs. Domestic AusterityThe financial landscape is currently defined by a sharp contrast between record-breaking U.S. and Asian performance and a cautious, "austerity-focused" environment in India.U.S. Performance: The S&P 500 and NASDAQ hit fresh record highs last week, marking their sixth consecutive weekly gain. This was fueled by a blowout April jobs report (115,000 new jobs vs. 55,000 forecast) and a massive upward revision in corporate earnings.Earnings Growth: S&P 500 net income is projected to rise by 27.7%, the strongest growth since 2021.Asia-Pacific: South Korea’s Kospi hit a record high Monday morning, jumping 3.67% as it navigated regional tensions and oil price surges.Energy Surge: Brent crude has climbed back above $105/barrel due to supply disruptions and conflict with Iran. This has made energy the top-performing sector of 2026, up nearly 25% year-to-date.Sticky Inflation: With U.S. inflation hitting 3.3% and energy costs surging (up 12.5% YoY in March), analysts predict interest rate cuts may be delayed until 2027, with some even eyeing potential rate hikes later this year.Consumer Sentiment: U.S. sentiment fell to 48.2 in May, reflecting public anxiety over rising fuel and living costs.While global indexes hit records, Indian benchmarks (Nifty 50 and Sensex) ended the week lower due to foreign outflows and profit booking. The domestic focus has shifted toward economic preservation:PM Modi’s Appeal: To protect foreign exchange reserves and combat the impact of high oil prices, the Prime Minister has urged citizens to:Postpone Gold Purchases: Defer buying for at least one year.Limit Travel: Postpone non-essential foreign vacations and destination weddings.Adopt Remote Work: Revive pandemic-era WFH habits to save fuel.Dietary Shifts: Reduce edible oil consumption for health and economic reasons.Market Outlook: The Indian market is in a consolidation phase. Experts expect the Nifty to oscillate between 23,800 and 24,400, with a likely lower opening today following weak global cues and geopolitical instability in the Middle East.

US Markets Retreat as Hormuz Tensions Push Crude HigherAmerican forces struck Iranian military facilities responsible for attacks on warships transiting the Strait of Hormuz, adding that US forces "do not seek escalation."Oil resumed its rally Friday after US and Iranian forces exchanged fire near the Strait of Hormuz, stoking fears that a fragile ceasefire was unravelling and threatening further disruption to one of the world's most critical shipping lanes.The military exchanges injected fresh uncertainty into global markets, with crude jumping roughly 2% in after-hours trading amid revived concerns over energy supply stability and inflation.US equities retreated with the S&P 500 falling 0.38% to 7,337.11 and the Dow shedding 313 points to 49,596.97 — though both indexes remain well above year-ago levels following April's record monthly advance. Losses were driven by a cooldown in technology stocks, with the Dow slipping more than 0.6% after failing to breach the 50,000 threshold.Broadcom shares dropped 4% after reports emerged that its landmark $18 billion AI chip deal with OpenAI is facing a major financing hurdle, contingent on Microsoft committing to purchase roughly 40% of the chips. Should Microsoft decline, the financing terms for the project would need to be renegotiated, casting doubt over the timeline of the high-profile partnership.While long-term appetite for artificial intelligence remains robust, semiconductor firms like Intel and Advanced Micro Devices faced significant pressure, with some shares falling roughly 3%. This retreat follows a period of strong quarterly gains, as investors begin to weigh lofty valuations against actual earnings performance.The Indian rupee strengthened for the second consecutive session yesterday, appreciating by 36 paise to close at 94.25, supported by gains in Asian currencies. Support came from short covering and steady dollar inflows through domestic banks. Nifty extended its alternating trend of gains and losses, slipping marginally by 4 points to settle at 24,326. Despite the profit booking during the second half, the broader technical structure remains intact, with the index sustaining the uptrend. Immediate support is at the 24,000 level, while resistance is near 24,600.Indian markets are likely to open lower on weak global cues.

Opening Bell - Morning CommentaryWall Street Surges to New Highs While Indian Markets ConsolidateThe S&P 500 and Nasdaq Composite both closed at fresh all-time highs, buoyed by strong mega-cap tech earnings and a modest pullback in crude prices. The S&P 500 extended its winning streak to five consecutive weeks on Friday, closing 0.3% higher at a record high, led by technology and consumer discretionary sectors. The Nasdaq 100 rose 0.9%, also finishing at a record.US GDP grew at a 2.0% annualised rate in Q1 2026, accelerating from 0.5% in Q4 2025, but fell slightly short of consensus estimates and was well below the 4.4% pace recorded in Q3 2025. Earnings expectations surged after mega-cap technology companies reported better-than-expected results. With 63% of S&P 500 companies having reported, analysts now project first-quarter earnings growth of 27.1%, up sharply from a 15.0% forecast the prior week.The past week was a period of consolidation and heightened volatility for the Indian equity markets. While the benchmarks had enjoyed a stellar April—with the Nifty 50 surging over 5.8% for the full month—the final week saw a tactical retreat. Investors grappled with a combination of higher-for-longer global interest rate signals and a sharp escalation in energy costs driven by geopolitical friction. The Indian Rupee hit a historic psychological milestone, slipping past the 95-per-US-dollar mark on April 30. This depreciation was accelerated by continued foreign portfolio investor (FPI) outflows as traders pivoted toward the safety of the US dollar index. BSE Sensex added 0.3%, and the Nifty gained 0.4% for the week. The BSE 150 MidCap Index gained 0.3%. The BSE 250 SmallCap index jumped 2.0%.The IT sector was a rare bright spot, acting as a natural hedge against a weakening Rupee. The Banking and Financial Services sectors bore the brunt of the selling pressure, with Nifty Bank falling roughly 1% in the final session of April. Additionally, the Metals and Energy space faced headwinds.Indian automakers exhibited robust monthly sales, surging 8-10% YoY amid festive demand and lower taxes.India’s GST collections jumped 8.7 per cent year-on-year to hit an all-time high of Rs 2,42,702 crore in April 2026, according to the latest official data released on Friday, May 1.Results for four state assembly elections and one Union territory — Assam, Kerala, Tamil Nadu, West Bengal, and Puducherry — are due today and that is likely to drive sentiments in the short run.Nifty found support near the key 23,800 level, which reinforces its role as pivotal support. Immediate hurdles stand at 24,334 and 24,600.Indian markets are likely to open higher on strong global cues.

Opening Bell - Morning CommentaryMarkets Pin Hopes on Quarterly Earnings TodayUS equity markets finished higher on Wednesday, reversing modest losses at the open, with the S&P 500 gaining 0.4% and the Dow rising by 0.7%. The real estate and information technology sectors were among the top performers of the S&P 500.The ADP employment survey for January showed that private employers added 183,000 jobs for the month, above expectations for 150,000 and above the December reading of 176,000. Friday will provide another update on labour-market conditions with the release of nonfarm payroll growth and the unemployment rate for January.European markets were mostly higher following a eurozone inflation reading that was in line with expectations.The Reserve Bank of India's upcoming Monetary Policy Committee meeting, led by Governor Malhotra, is likely to deliver a 25 basis point cut in the repo rate, though the decision hangs in delicate balance. Given the rupee's weakness against the dollar and mounting global uncertainties, the central bank might instead prioritize liquidity management and postpone any rate reduction until its April policy review.Indian rupee touched fresh low yesterday in afternoon trade at 87.50 against the US dollar.Index erased most of its morning gains yesterday as earnings reports did little to lift investor sentiments and ended with marginal losses. Seventeen blue-chip companies, including Bharti, ITC, State Bank of India, Hero MotoCorp, and Trent, will release their quarterly earnings today. Their performance against market expectations will set the tone for today's trading session.The Nifty encountered resistance at the descending trendline connecting the September and December 2024 highs on the daily chart. However, this appears to be a temporary pause in the prevailing uptrend, as it continues to trade above its 50-day and 200-day exponential moving averages (DEMAs), currently placed at 23,664 and 23,620, respectively. A sustained move above 23,800 could propel the index towards the next resistance zone of 24,050-24,100. Conversely, the 23,500-23,600 range is expected to provide support.

U.S. stocks finished lower after choppy trading in the aftermath of the Federal Reserve's decision to lower its benchmark interest rate by half a percentage point, an aggressive start to a monetary-easing cycle in the world’s largest economy. A rally that briefly drove stocks to their all-time highs bumped into a wall as the Federal Reserve signalled it’s not in a rush to ease policy after cutting rates by a half-point. Jerome Powell cautioned against assuming big rate cuts would continue. The Indian government's advance tax collection in this financial year surged 22.6% to Rs 4.36 lakh crore till Sept. 17, indicating a sustained momentum in the economy and strong corporate performance.Lupin entered into a Non-Exclusive Patent Licensing agreement with Takeda to commercialize Vonoprazan, a Novel Gastro-Intestinal DrugGarden Reach bags US$ 54 million order, Centre upgrades PSU to 'Schedule A' categoryB L Kashyap received an order worth Rs 221 croreAsian stocks mostly rose after the U.S. Federal Reserve began its easing cycle with a large rate cut, though it tinkered that with a balanced outlook as it seeks to keep the economy ticking over.Nifty took a U-turn after hitting a new all-time high of 25482 in the first half of Sept 18. Nifty erased all the gains in the second half and closed the session with the loss of 41 points or 0.16% at 25377. Nifty must surpass the hurdle of 25500 for the momentum to pick up. On the lower side, 25200 could offer support in the near term.Indian markets could open mildly higher, in line with mostly higher Asian markets today and despite negative US markets on Sept 18.

The US Federal Reserve is in focus next week, as uncertainty swirls over how much the U.S. central bank will cut interest rates at its monetary policy meeting on Sept 18 and the pace at which it will reduce borrowing costs in coming months. Short term trend of the Nifty remains bullish. Resistance for the Nifty is now seen at 25527, which is derived from Fibonacci extension levels. On the lower side, 24885 is expected to act as a support for Nifty. The coming week could see the Nifty picking a sustainable trend after the outcome of the US Fed meet.

U.S. stocks were higher after the close on Tuesday, as gains in the Financials, Technology and Telecoms sectors led shares higher. The S&P 500 ended higher on Tuesday and the Dow Jones notched a record-high close ahead of a much-anticipated quarterly report from Nvidia on Wednesday and economic data expected later in the week that could give clues about the path of interest rate cuts.US consumer confidence rose to a six-month high in August as more upbeat views of the economy and inflation offset waning optimism about the labor market. The Conference Board's consumer confidence index increased to 103.3 this month, the highest level since February, from an upwardly revised 101.9 in July. Awfis Space Solutions signs largest managed aggregation deal of 3 lakh square feet with Nyati GroupZee enters into settlement agreement with Sony India; terminates $10 bn deal’Bharti Airtel partners with Apple to offer exclusive access to Apple TV+ content and Apple Music in India.Stocks in Asia traded mildly lower following a sluggish day on Wall Street, as investors prepared for a slew of earnings that will set the tone for risk assets.Nifty ended on a flat note on August 26 after a small 99.5 point range day. At close, Nifty was up 0.03% or 7.2 points at 25017. Nifty could now take support from 24850 while 25130 could offer resistance.Indian markets could open flat to mildly lower, in line with mostly lower Asian markets today and despite positive US markets on Aug 27

Domestic equity indices continued their upward trajectory for the sixth consecutive week. Investors now look forward to the Q1 earnings season that started this week and the upcoming budget announcement scheduled for July 23rd, which could provide further direction for the market. Multiple tailwinds led the market to come out of its range-bound trajectory. The strong result from the IT bellwether and a drop in US inflation to a one-year low added optimism to the market. Sensex advanced 0.65% and Nifty added 0.73% over the week. The markets edged higher in 2 out of 5 trading sessions during the week. In the broader markets BSE Midcap index was up 0.15% and the BSE Smallcap index fell 0.23%. Market breadth was in favour of losers with 9 shares advancing for every 10 losers. Average cash turnover on NSE was 6% higher as compared to previous week. Sectoral indices were mixed with Realty down 2.3%, Telecom down 1.6% and Auto down 1.1%. On the positive side IT rallied 3.5%, FMCG was up 3.3%, and Oil & Gas gained 2.9%. Among Nifty 100 stocks, Zomato surged 7.2%, ONGC was up 6.6%; ITC gained 5.9%; Marico added 5.6%; and Godrej Consumer rose 5.1%. On the downside, Bank of Baroda fell 8.5%; M&M slipped 6.1%; ABB was down 5.4%; Vedanta fell 5.4% and Canara Bank declined 4.3%. As per provisional figures, FIIs were net buyers of Rs 3844cr in the equity markets during the week and DIIs were net buyers of Rs 5391 crore.

*NIFTY scales mount 24K* The S&P 500 closed with a narrow gain on Thursday as Wall Street looked ahead to fresh inflation data for clues as to when the Federal Reserve will begin to lower interest rates. Core inflation in Japan's capital rose in June (to 2.1% YoY vs forecast of 2.0%) on rising fuel bills and the boost to import costs from a weak yen The Japanese yen hit fresh 38-year lows against the US dollar, weakening to as low as 161.27 against the dollar. India is preparing itself for the inclusion of the nation’s government bonds into the JPMorgan Chase & Co. emerging markets index from today, opening up a $1.3 trillion market to a broader range of investors. Equities in Asia on Friday morning followed gains in US stocks overnight. Asian stocks were headed for a fifth straight month of gains on Friday, bolstered by the growing view that cooling inflation in the United States would allow the Federal Reserve to ease rates later this year. HCLTech’s 0.46% stake likely to be sold for Rs 1,757 cr via block deal on Friday Indian Oil to boost LNG portfolio to 20 million tonnes by 2030 Jubilant Ingrevia successfully received EIR from US FDA with Zero observations Nifty ended at record high on June 27 and crossed another milestone by scaling past the 24,000 mark. At close, Nifty was up 0.74% or 175.7 points at 24044. Nifty also registered a smart 6.9% gain in the Monthly F&O series that expired on June 27. Nifty could now rise towards 24240 resistances while 23754 could offer support in the near term. Indian markets could open higher, in line with mostly positive Asian markets today and higher US markets on June 27.

*Morning comments (HDFCSec Retail Research)* *Indian markets could open flat to mildly higher, in line with mostly positive Asian markets today and mixed US markets on June 26* US indexes ended marginally higher on Wednesday, lifted by Amazon.com Inc after it announced a major foray into generative AI. The firm also crossed the $2 trillion valuation mark. Big tech got hit in late US trading after Micron Technology Inc.’s outlook failed to meet the lofty expectations for the industry that has powered the bull market in stocks. Micron slumped in late hours, dragging down some chipmakers including giant Nvidia Corp. China's industrial profits rose at a much slower pace in May, official data showed on Thursday, underlining the struggles faced by the world's second-largest economy as weak domestic demand crimps overall growth. Earnings rose 0.7% year-on-year last month after a 4% increase in April while gains over the first five months also eased to 3.4% from 4.3% in the January-April period The Japanese yen hit a near-38 year low against the U.S. dollar late Wednesday, raising expectations that authorities could intervene in currency markets again. The yen weakened to 160.82 against the greenback according to FactSet data, breaching the previous record of 160.03 on April 29 and reaching its weakest level since 1986. US home sales slumped in May while the median sales price nudged lower, the Commerce Department reported Wednesday. Sales of new single-family homes totaled 619,000 for the month, down 11.3% from the upwardly revised figure for April, which was revised all the way up to 698,000 from the initial estimate of 634,000. The most anticipated economic data due this week is the US personal consumption expenditures (PCE) price index - the Fed's preferred inflation gauge - on Friday. Shares in Asia recovered early losses on Thursday morning after US tech companies dropped in late US trading. Nifty rose for the third consecutive session to close at yet another new all time high. At close, Nifty was up 0.62% or 147.5 points at 23868.80. Trend of the Nifty remains positive. The level of 23660 has become new support for the Nifty. On the higher side, next resistance is seen at 24125, which happens to be 138.2% Fibonacci retracement of the entire fall seen from 23338 (3rd June Top) to 22281 (4th Jun Bottom). *DJ (HDFCSec Retail Research)*

The Dow rallied on Monday to a one-month high, while the Nasdaq fell over 1% as investors rotated out of AI-linked stocks, betting on Federal Reserve interest rate cuts this year. Nvidia slid 6.68% for a third session due to profit taking in the semiconductor bellwether after last week's sharp rise made it the world's most valuable company. India's current account balance recorded a surplus for the first time since April-June 2021, aided by lower merchandise trade deficit and higher services exports. India's current account balance recorded a surplus of $5.7 billion (0.6% of GDP) during January-March 2024 quarter, as against a deficit of $8.7 billion (1% of GDP) in the preceding quarter and $1.3 billion (0.2% of GDP) in the same quarter a year ago. For the full year, India’s current account deficit moderated to $23.2 billion (0.7% of GDP) during FY24 from $67 billion (2% of GDP) during the previous year on the back of a lower merchandise trade deficit. Asia-Pacific markets mostly climbed higher on Tuesday, even as U.S. Big Tech stocks sold off in favor of other sectors such as banking and energy. Nifty ended marginally higher in a volatile session after a lower opening on June 24. At close, Nifty was up 0.16% or 36.8 points at 23537.8. Nifty formed a bullish piercing line pattern on daily charts. However, the small range and falling turnover does not support the bullish outcome. In the near term Nifty could face resistance in the 23570-23667 band while 23290 could offer support.

U.S. stocks traded lower Wednesday as the minutes from the Federal Reserve’s May meeting raised concerns of persistent inflation, indicating the central bank may not cut interest rates soon. Post market, Nvidia’s results sent its shares as much as 7% higher in after-hours trading. Nvidia said second-quarter revenue will be about $28 billion, beating analysts’ estimates. The company also announced a 10-for-1 stock split and boosted its quarterly dividend by 150% to 10 cents a share. The Reserve Bank of India's (RBI) Central Board of Directors has approved the transfer of Rs 2.11 lakh crores as surplus to the government for the financial year 2023-24. The government had budgeted a dividend of Rs 1.02 lakh crore for 2024-25. BPCL Boosts Aviation Fueling Capabilities with New Hydrant Facilities at Manohar International Airport, Goa. NHPC expects to complete all 4 units of the Parbati-II hydroelectric project by Dec 2024 Karur Vysya Bank has set a target of opening 100 new branches during the current financial year across the country, Asia-Pacific markets were mixed after minutes of the last U.S. Federal Reserve meeting revealed Fed officials’ concerns over persistent inflation, with members seemingly becoming unsure of possible interest rate cuts. Nifty ended a range-bound session on May 22 in the positive. At close, Nifty was up 0.31% or 68.8 points at 22597.8. Nifty settled higher for the fifth consecutive session and recorded its longest winning streak since April 25 Nifty could now rise towards the 22710-22794 band while 22404 can provide support on falls in the near term. Indian markets could open flat, in line with mixed Asian markets today and despite lower US markets on May 22

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