Asian Markets Trade Lower Tracking Overnight Losses On Wall Street; D-Street To Open In The Red?

Summary

Global markets are facing a volatile period, with Wall Street's selloff continuing as the NASDAQ enters correction territory and the Dow loses over 400 points. Despite tariff concessions from President Trump, Asian markets opened sharply lower, while European stocks showed mixed results after the European Central Bank's interest rate cut. Domestically, Indian markets are expected to start lower, with specific stocks in focus including Brigade Enterprises, Indigo, and Kalpataru Projects. Commodity markets also saw profit-taking, particularly in gold and crude oil, while metals continue to see strong gains. The geopolitical and economic uncertainties are expected to continue affecting global market trends.

Takeaways

• 😀 Wall Street continued its selloff, with the NASDAQ falling over 2.5% and entering correction territory.
• 😀 Despite tariff concessions from President Trump, the Dow lost more than 400 points, reflecting investor uncertainty.
• 😀 Asian markets opened sharply lower, with significant declines seen across indices like the Hang Seng, Taiwanese index, and Nikkei.
• 😀 The GIFT Nifty indicated a negative start for Indian markets, suggesting a 70-point dip.
• 😀 President Trump's tariff exemptions for Canadian and Mexican imports failed to calm investor concerns.
• 😀 U.S. layoffs reached their highest levels since 2020, with over 172,000 job cuts, primarily affecting tech and retail sectors.
• 😀 European markets reversed their course, with the CAC and DAX ending higher after the European Central Bank's rate cut decision.
• 😀 The European Central Bank cut rates by 25 basis points to stimulate growth and reduce inflation, but warned of a potential trade war with the U.S.
• 😀 Crude oil prices remained steady at around $69 per barrel, while gold prices dropped due to rising U.S. Treasury yields.
• 😀 Stocks to watch include Brigade Enterprises (with a new project worth ₹1,700 crores), Indigo (launching long-haul flights), and Jindal Stainless (completing a 26% divestment).

Q & A

What was the performance of Wall Street in the recent trading session?

Wall Street saw a decline, with the NASDAQ dropping over 2.5%, entering correction territory, while the Dow lost more than 400 points. The S&P 500 also saw significant losses, shedding almost 2%.

How did Asian markets react to Wall Street's performance?

Asian markets opened sharply lower, following Wall Street's weak close. The Hang Seng, Taiwanese index, and Nikkei all saw losses, with the Nikkei leading the decline with over 1.5% losses.

What decision did President Donald Trump make regarding tariffs?

President Trump temporarily exempted tariffs on a wide range of imports from Canada and Mexico until April 2nd. The exemptions apply to goods compliant with the US-Canada-Mexico Trade Agreement (USMCA).

What is the current situation in the commodities market?

Crude oil prices remain steady around $69 per barrel, while gold prices have fallen after a three-day gain streak, partly due to rising Treasury yields. The market is also observing profit-taking in the commodity space.

What was the impact of the recent US layoffs?

Layoffs in the US soared in February, reaching the highest levels since 2020. Over 172,000 layoffs were announced, with more than a third of them attributed to Elon Musk's efforts through Dogecoin.

How did the European Central Bank (ECB) respond to economic conditions?

The ECB cut its benchmark interest rates by 25 basis points to 2.5%, signaling that rates were still restrictive for growth. It also lowered its economic growth forecast for the fourth consecutive time.

What is the situation with the Indian markets, according to the research team?

The Indian markets are expected to have a slightly negative start. Despite this, the Nifty had closed in the green for the second consecutive day, and small-cap indices showed strong performance.

What key factors are influencing the market setup today?

Key factors influencing the market setup include updates on President Trump's tariffs, jobless claims data from the US, and ECB's rate cuts. The ongoing geopolitical developments and foreign institutional investor (FII) actions are also closely watched.

What stocks are likely to be in the news today?

Stocks to watch include Brigade Enterprises, Indigo, Laps, Kalpataru Projects, RVNL, Cas Corp, Aris Life Sciences, and Jindal Stainless, among others, due to various corporate actions and news.

What is the F&O market indicating after the weekly expiry?

The F&O data suggests that after a good weekly expiry, the market is now focusing on the 22,500 straddle. The Nifty's long exposure has increased to 18%, and traders are monitoring the 20-day moving averages for potential market movements.