- The S&P 500 reached a new all-time high, fueled by strong earnings reports.
- Indian stock markets opened lower due to US tariff concerns and FPI selling pressure.
- Pharma stocks in India declined following Trump’s 25% tariff reiteration.
Wall Street continued its upward momentum, with the S&P 500 closing at a record high, driven by strong corporate earnings and investor confidence.
In contrast, Indian markets opened lower as global uncertainty and US tariffs pressured stocks. The Sensex and Nifty struggled, with pharma stocks among the worst hit.
Record-Setting Wall Street Gains Face Global Market Uncertainty
Wall Street’s record highs come as US companies post strong earnings, with the S&P 500 showing nearly 17% EPS growth in Q4 2024. Despite concerns over AI disruptions and tariffs, investor optimism remains high. A Bank of America survey shows global fund managers holding only 3.5% of portfolios in cash, the lowest since 2010.
Meanwhile, Indian stocks struggle under foreign portfolio investor (FPI) outflows and protectionist trade policies. Pharma stocks were hit hardest, reacting negatively to Trump’s 25% tariff stance. Analysts caution that broader market trends will depend on whether foreign investments stabilize or continue to decline.
The Nifty index remains in a tight range, with support seen around 22,700-22,800. Bulls need to push above 23,235 to signal a meaningful recovery. Until then, traders anticipate continued weakness, with short-term selloffs likely.
Investor sentiment in India is cautious as market watchers navigate inflation worries and potential Fed policy shifts. Despite short-term concerns, long-term growth prospects remain intact, driven by India’s strong economic fundamentals.
While Wall Street celebrates record highs, Indian markets remain pressured by global economic headwinds. Traders will closely watch tariff developments and FPI trends for market direction.
“The stock market is filled with individuals who know the price of everything, but the value of nothing.” — Philip Fisher
