Opening Bell - Morning Commentary

Asian Stocks Hit Record Highs, Nifty Primed for All-Time High Rally Above Key 26,000 Resistance

Asian stocks rose to a record high on Thursday, while the dollar firmed a touch against most currencies, except the yen, after stronger-than-expected U.S. jobs data dented near-term rate-cut expectations, setting the stage for the inflation report on Friday.

The US economy added 130,000 jobs in January, double expectations, while unemployment unexpectedly fell to 4.3%. The robust labour data pushed Treasury yields higher and prompted traders to pare back their expectations for a Federal Reserve rate cut in 2026.

Financial services stocks JPMorgan, Bank of America, and Charles Schwab fell by more than 2% amid concerns about AI-driven disruption in wealth management. Software companies Salesforce and Intuit also declined more than 4% as AI-powered tools threaten traditional business models.

Shopify shares surged after beating Q4 revenue estimates and announcing a $2 billion share repurchase program. The e-commerce platform also provided solid first-quarter revenue growth guidance, boosting investor confidence.

Mattel shares cratered after Q4 earnings and revenue missed estimates, with the toy maker guiding for declining adjusted EPS in 2026 despite expected sales growth. The stock hit its lowest level since last April on the disappointing forecast.

Gold futures surged 1.3% to over $5,090 per ounce while silver jumped more than 5% to $84.65 yesterday. The rally was fueled by a softer US dollar and disappointing economic data, including flat December retail sales.

Oil prices edged up amid concerns about escalating tensions between the U.S. and Iran.

The rupee slid 12 paise to 90.70/$ amid rising crude and precious metal prices, fueling importer demand for dollars.

The Nifty extended its winning streak to a fourth consecutive session, eking out a modest 18-point gain to finish at 25,953.

Nifty continues to hold its uptrend with its level above all key moving averages. Immediate resistance for the Nifty is seen near 26000; above this, the index could extend the rally towards a fresh all-time high of 26373. On the downside, the 25700-25780 band could provide strong support for the index.

Indian markets are poised to open subdued on softer global cues.