Can D-Street Bulls Charge Ahead Despite Negative Cues from Wall Street Overnight? Banking & Metal Stocks in Focus
Pre-Market Update: The Indian stock market is likely to see a flat start on Tuesday, tracking negative cues from global markets. Asian indices are trading in the red, while U.S. markets declined overnight, weighed down by sentiment after President Donald Trump criticised Federal Reserve Chair Jerome Powell. Adding to the negative mood were reports that China has warned countries negotiating with the U.S. that they will face retaliation if they strike tariff deals that harm Beijing.
As of 7:45 AM, Gift Nifty was trading flat at the 24,156 mark, up by 6 points compared to the previous close.
Among stocks, banking names are likely to continue hogging the limelight as the RBI’s easing of LCR computation norms may free up additional resources for lending. Meanwhile, metal stocks are also expected to remain in focus after the government imposed a 12% safeguard duty on select steel imports, a move aimed at supporting domestic producers and improving overall sector sentiment.
On Monday, the domestic equity benchmark indices extended their winning streak for the fifth straight session, driven by broad-based buying. The Sensex climbed 855.30 points (1.09%) to end at 79,408.50, while the Nifty 50 surged 273.90 points (1.15%) to settle at 24,125.55. FIIs have turned net buyers for the fourth straight session. They have made cumulative purchases worth ₹16,6400 crore over the last four trading sessions
The Index of Eight Core Industries* (ICI) recorded a provisional growth of 3.8% in March 2025 compared to the same month last year. For the full fiscal year 2024-25, the cumulative growth of these key sectors stood at 4.4%, reflecting a moderate pickup from the previous year’s figures.
*Note: The eight core industries in India are: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilisers, Steel, Cement, and Electricity. These industries are considered crucial to the overall economic health of the nation, and their performance is closely tracked through the Index of Eight Core Industries (ICI).
The Reserve Bank of India has revised the Liquidity Coverage Ratio (LCR) framework, allowing banks to maintain a reduced buffer of 2.5% on digitally linked deposits. Banks have been given one year to comply with this new directive. As a result, the LCR position of banks as of December-end is expected to see an improvement of nearly 6 percentage points.
Asian stock markets slipped on Tuesday, mirroring the downturn seen on Wall Street the previous night. Japan’s Nikkei 225 lost 0.4%, while the Topix index edged down by 0.2%. In South Korea, the Kospi dropped 0.34%.
U.S. markets saw a steep decline on Monday, shaken by renewed criticism from President Trump directed at Federal Reserve Chair Jerome Powell and the central bank’s policy decisions. The Dow Jones Industrial Average tumbled 971.82 points, or 2.48%, to close at 38,170.41. The S&P 500 also fell by 124.50 points, or 2.36%, ending at 5,158.20. Meanwhile, the Nasdaq Composite lost 415.55 points, or 2.55%, ending the session at 15,870.90.
U.S. President Donald Trump reiterated his concerns about the U.S. economy, warning that it may slow down if interest rates are not cut right away. Taking aim once again at Federal Reserve Chair Jerome Powell, Trump stated on Truth Social that with costs already trending downward, something he claimed to have foreseen, inflation is unlikely to be a threat. However, he cautioned that economic growth could stall unless Powell, whom he mocked as being consistently late and ineffective, takes immediate action to reduce rates.
Gold prices extended their record-breaking rally on Tuesday, supported by growing concerns. These worries have increased the appeal of safe-haven assets like gold. Spot gold increased by 0.1% to $3,429.03 an ounce, after hitting a new all-time high of $3,443.79 earlier in the day. Meanwhile, US gold futures gained 0.4%, reaching $3,439.70.
The US dollar remained weak, hovering close to a three-year low. The dollar index, which tracks the greenback against six major currencies, stood at 98.454, slightly above the previous session’s dip to 97.923, a level last traded in March 2022.
Disclaimer: The article is for informational purposes only and not investment advice.
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