Opening Bell - Morning Commentary

Small is Beautiful – Look Beyond the Index

Indian benchmark indices ended higher for the second consecutive week, supported by easing crude oil prices and easing geopolitical concerns. The Nifty 50 snapped its losing streak, reclaiming the 24,000 level.

Fed rate-hike concerns stoked fears of FII outflows from emerging markets, while Accenture's revenue growth guidance cut triggered a broad-based selloff in IT stocks.

Offsetting these pressures, strong domestic macroeconomic fundamentals — robust retail demand and sustained infrastructure momentum — provided a floor.

U.S. stocks remained highly volatile, pulled in opposing directions by a pivotal Federal Reserve policy shift and fast-moving geopolitical developments. For the week, the Nasdaq gained 1.9%, the S&P 500 added 1.1%, and the Dow finished marginally higher.

The Fed's midweek meeting — the first under new Chair Kevin Warsh — held rates steady at 3.50–3.75%, but the accompanying tone was decidedly hawkish.

Nifty closing above 24,000 after a long pause marks a clear breakout, but the real story is happening beneath the headline index. Small-cap and mid-cap stocks have begun to

show greater momentum than large-cap names.

Expect smaller stocks to continue outperforming in the medium-term, as valuations re-rate and earnings recover across cyclical segments.

Indian markets are set to open higher on positive global cues.