Indian markets are poised to open mildly higher today on the back of positive global cues.
Powell’s August 25 address delivered dovish signals that reignited Wall Street optimism, propelling the Dow to a new all-time high. He indicated the Fed is seriously considering rate cuts, citing a softening labour market and “a shifting balance of risks” between inflation and employment. While acknowledging inflation remains elevated partly due to tariff pressures, Powell emphasised greater concern over emerging job market fragility and signalled potential rate cuts as early as September, pending upcoming jobs and inflation data.
Nvidia Corp. is set to report quarterly earnings on Wednesday after the market close. Traders are hoping it can soothe fears about AI spending.
Treasury yields declined as bond prices rose, the dollar weakened on lower rate expectations, and the VIX dropped to its lowest 2025 level, reflecting reduced uncertainty. The Dow surged 846 points (1.9%) on Friday to achieve its first record close of 2025, while the S&P 500 and Nasdaq both gained 1.5% to 1.9%.
The positive momentum from US markets is lifting Asian equities and supporting Indian stocks ahead of today’s trading session. A dovish US rate outlook benefits emerging markets like India by weakening the dollar and encouraging foreign institutional investment flows into domestic equities.
InterGlobe Aviation Ltd. and Max Healthcare Institute Ltd will be in the limelight as they are going to enter the NSE Nifty 50 index.
Indian markets succumbed to selling pressure on Friday, ending a six-day winning streak amid concerns over potential US tariffs on Indian goods and global uncertainties.
Markets face a shortened trading week with Ganesh Chaturthi holiday on Wednesday, while key events include monthly F&O expiry, RIL’s AGM on Friday, and crucial Q1 GDP numbers that could set the tone for upcoming policy decisions.
The rally, which has seen the Nifty gain of over 750 points from its recent swing low of 24337, has now retraced more than 50% of the entire fall from 25669 to 2433*7. Resistance levels for the Nifty are seen at 25160 (61.8% retracement of the fall) and 25355 (76.4% retracement). The support for the Nifty has now shifted to *24800.
Source: HDFC Securities Prime Daily, 25 August 2025
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