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Home > Stock Market Updates > Opening Bell - 12 / 02 / 25
Podcast: Stock Market Updates
Episode:

Opening Bell - 12 / 02 / 25
Category: Business
Duration: 00:02:20
Publish Date: 2025-02-12 03:35:11
Description:

Opening Bell - Morning Commentary


Modest Recovery in Early Trade After Five-Session Decline


Wall Street's main indexes ended mixed on Tuesday as gains in Coca-Cola and Apple offset losses in Tesla, while investors parsed Federal Reserve Chair Jerome Powell's latest comments. The U.S. central bank is in no rush to cut its short-term interest rate again, given the economy is "strong overall", with low unemployment and inflation still above the Fed's 2% target.


Coca-Cola advanced 4.7% after the beverage maker beat fourth-quarter revenue estimates, helped by higher prices and resilient demand for its sodas and juices.


Tesla tumbled 6.3% a day after a consortium led by CEO Elon Musk offered $97 billion to buy the non-profit that controls artificial intelligence start-up OpenAI. Consumer staples and energy were among the top-performing sectors of the S&P 500, with energy receiving a boost from higher oil prices


Deep uncertainty about President Donald Trump's announcement on Monday of U.S. tariffs on steel and aluminum imports and what lies next in the brewing global trade war may also keep investors on the defensive.


With roughly 65% of the companies in the S&P 500 announcing fourth-quarter results, earnings are on pace to grow by approximately 16% year-over-year.


Asian markets will be looking to claw back Tuesday's broad losses. Still, they will face headwinds from a sluggish performance on Wall Street, higher U.S. bond yields, and persistent nervousness around escalating global trade tensions.


Global index provider has announced changes to its indices as part of the February 2025 review, with adjustments set to take effect after market close on February 28. Among the top weight increases in the Indexes, IndusInd Bank Ltd., Zomato Ltd., Varun Beverages Ltd., Mankind Pharma Ltd., Torrent Pharmaceuticals Ltd., Dixon Technologies (India) Ltd., PB Fintech Ltd., Adani Enterprises Ltd., and Voltas Ltd. joined Hyundai India in the top ten.


Conversely, the most significant weight decreases were seen in Adani Green Energy Ltd., Reliance Industries Ltd., HDFC Bank Ltd., Infosys Ltd., ICICI Bank Ltd., Bharti Airtel Ltd., Tata Consultancy Services Ltd., Mahindra & Mahindra Ltd., Larsen & Toubro Ltd., and Axis Bank Ltd.


Unsubstantiated fears regarding higher tax rates on financial securities due to the implementation of the New Income Tax Bill also triggered panic selling among weak market participants. Some of the selling can be linked to margin calls on funded positions.


India's January inflation, December industrial production, and Japan's investing giant Softbank Q3 results will set the tone for investors today.


*The short-term trend remains weak as Nifty is below its 5, 11, and 20 DEMA. The previous support of 23222 is likely to serve as near-term resistance, while immediate support is set at 22976, followed by 22800 levels.


Indices will recover in early trade after a five-session rout that has rattled investor confidence. However, the sustainability of this nascent rebound remains contingent upon clarity emerging from the proposed income tax act and the outcome of discussions between Prime Minister Modi and US President Trump.
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