Opening Bell - Morning Commentary

Dow at New All-Time High; Broad-Based Rally Lifts Indian Markets

World stocks rallied on Monday, propelled by optimism over Japanese Prime Minister Sanae Takaichi's thumping election win and a tech rebound, while the dollar slumped amid reports that China has advised financial institutions to curb exposure to U.S. bonds.

U.S. stocks moved mostly higher over the course of the trading day on Monday, extending the strong upward move seen in last Friday's session. The Dow Jones Industrial Average closed at a new all-time high of 50135, rising modestly as markets recovered from last week's volatility. The S&P 500 climbed 0.5%, and the Nasdaq advanced 0.9%, with technology stocks powering the rally.

Oracle jumped 9.6% after an upgrade, while AppLovin soared over 13% following a retraction of critical allegations. The Information Technology sector gained 1.4%, leading the S&P 500 higher as investors returned to beaten-down software names.

Investors await delayed January employment data on Wednesday and CPI inflation figures on Friday. The data releases will provide crucial guidance on Federal Reserve interest rate policy for the remainder of 2026. The monthly job report is expected to show employment climbed by 70,000 jobs in January after rising by 50,000 jobs in December, while the unemployment rate is expected to hold at 4.4 per cent.

Oil prices eased slightly on Tuesday as traders gauged the potential for supply disruptions, following U.S. guidance on vessels transiting the Strait of Hormuz that kept attention squarely on tensions between Washington and Tehran.

Nifty kicked off the week strongly, surging 173 points to close at 25867. It staged a 100-point recovery from the day's low after early profit booking, signalling clear bull control as it ended near the session high.

Short-term resistance looms near 26000; a break above could propel it toward fresh all-time highs beyond 26373. On the downside, the 25450–25500 zone remains a strong support.

Indian markets are positioned to open higher on conducive global cues.