Opening Bell - 10/ 01 / 25

Stock Market Updates

Opening Bell - Daily Morning Commentary

Make or Break day for the Indian markets

Crucial nonfarm payroll data in US

American markets observed holiday on Thursday to honour the death of former President Jimmy Carter, and trading volumes were thin in futures markets. Equity markets are softer amid persistent concerns over a slower pace of interest rate cuts in 2025, with upcoming nonfarm payrolls data set to provide more cues on the economy.

Strength in the labour market is expected to give the Fed even more headroom to cut interest rates at a slower pace. Fears of a labour market slowdown were one of the main motivations for the Fed cutting rates by 1% in 2024.

Focus will be largely on whether resilience in the U.S. economy translated into strength in corporate earnings, and whether heavyweight technology stocks- which were a key driver of Wall Street in 2024- were able to maintain their earnings growth.

Wildfires in California

Wildfires raged for the third straight day in California, destroying swaths of America’s most populated county and displacing tens of thousands of residents, with firefighters struggling to contain the biggest blazes. At least four infernos were burning simultaneously around Los Angeles, engulfing entire localities, destroying thousands of structures and upending daily life in a historic disaster.

TCS set the stage for earning season

TCS reported in-line revenue growth and operating performance in Q3, with best book-to-bill for Q3 & Q4 traditionally being strongest in bookings. Total Contract Value (TCV) of $10.2 billion exceeding the company's normalized TCV of $7-9 billion along with its second-highest divided ever in FY25 will enthuse investors.

Markets poised precariously

Indian equities face a pivotal trading session today. The Nifty index has experienced a downward correction throughout the week, now testing critical support levels. While Nifty managed to survive above the crucial supports, bulls have struggled to generate upward momentum at these lower levels. A breach below 23,460 could trigger intensified selling pressure, potentially driving the index toward its next support at 23,263. The immediate resistance level for Nifty has now shifted downward to 23,700.