First Tick: Top Global Cues for Today’s Trade
First Tick : As we commence trading on March 12, 2025, let’s delve into the pivotal global market cues shaping today’s financial landscape.
Indian Markets: A Flat Opening Anticipated
Indian benchmark indices, Sensex and Nifty 50, are projected to open flat today, influenced by the GIFT Nifty trading around 22,554 earlier this morning. The markets concluded a volatile session on March 11 with minimal changes; the Sensex dipped 12.85 points (0.02%) to 74,102.32, while the Nifty edged up 37.60 points (0.17%) to 22,497.90. Notably, sectors such as metal, realty, telecom, and oil & gas witnessed buying interest.
Global Market Overview
- Asian Equities: Asian stocks traded within a tight range after President Donald Trump downplayed recession fears, aiding a late-day recovery in U.S. stocks.
- U.S. Equities: U.S. markets experienced declines on Tuesday amid investor concerns over the economic impact of recent tariff threats. The Dow Jones Industrial Average fell 478.23 points (1.14%) to 41,433.48, the S&P 500 lost 42.49 points (0.76%) to 5,572.07, and the Nasdaq Composite decreased by 32.23 points (0.18%) to 17,436.10.
- U.S. Bond Yields: The yield on 10-year Treasuries decreased by 13 basis points to 4.27%, while the 2-year Treasuries yield dropped 16 basis points to 3.93%.
- Dollar Index: The dollar index traded with marginal gains against a basket of currencies in early Wednesday trading.
- Asian Currencies: Most Asian currencies traded lower in early Wednesday trade, with the Indonesian Rupiah leading the declines, followed by the Malaysian Ringgit, Singapore Dollar, Taiwan Dollar, and Japanese Yen.
- Crude Oil: West Texas Intermediate (WTI) crude rose 0.5% to $66.57 per barrel in early Wednesday trade.
- Gold and Silver: Gold prices traded marginally lower but remained above $2,900 an ounce, while silver prices declined 0.5% to $32.78 per ounce.
Impact of U.S. Tariff Policies
Recent U.S. tariff announcements have significantly influenced global markets. President Trump’s decision to double tariffs on Canadian steel and aluminum imports to 50% has exacerbated fears of a “Trumpcession,” leading to substantial losses on Wall Street and global markets. The S&P 500 fell by 0.75%, with the Dow Jones and Nasdaq also experiencing declines.
This move has strained the already tense U.S.-Canada trade relationship, raising concerns about inflation, economic growth, and market confidence. Investors found slight relief as Ontario agreed to suspend its electricity surcharge, and Ukraine accepted a 30-day ceasefire in its conflict with Russia. However, overall market sentiment remains cautious amid prevailing uncertainties.
European Defense Spending and Market Response
The Bank for International Settlements (BIS) observed that markets have responded favorably to Europe’s plans to increase defense spending in light of U.S. security policy changes. Despite typically cautioning against rising debt, the BIS highlighted the economy’s resilience, predicting it will avoid recession despite uncertainties stemming from U.S. tariffs. Sharp increases in European bond yields, particularly Germany’s, alongside positive stock market responses, suggest optimism about economic growth.
Oil Market Dynamics
Oil prices have experienced fluctuations due to various geopolitical and economic factors. The second full week of 2025 marked the fourth consecutive week of oil price increases, with Brent finishing up 1.3% at $80.79 and WTI up 1.7% to $77.88. Sanctions on Russia were a significant factor, alongside higher demand expectations and lower U.S. inflation. However, U.S. tariffs on China led to a decline in WTI to its lowest point since late December, before recovering due to renewed pressure on Iran.
Fund Flow Actions
Foreign Institutional Investors (FIIs) continued their selling spree on March 11, offloading equities worth ₹2,823 crore. Conversely, Domestic Institutional Investors (DIIs) remained net buyers, purchasing equities exceeding ₹2,000 crore on the same day.
Financial Ratios of Major Global Indices
Understanding the financial ratios of major global indices provides insight into market valuations and potential investment opportunities.
| Index | Trailing P/E Ratio | Forward P/E Ratio | Price-to-Book Ratio | Dividend Yield (%) |
|---|---|---|---|---|
| Global Equity Market | 21.61 | 17.93 | N/A | N/A |
| All World Stocks | 20.61 | N/A | N/A | N/A |
| S&P 500 | N/A | N/A | N/A | N/A |
| Dow Jones | N/A | N/A | N/A | N/A |
| Nasdaq Composite | N/A | N/A | N/A | N/A |
Data as of March 12, 2025.
Q&A Section
Q: Why are Indian markets expected to open flat today?
A: Indian markets are anticipated to open flat due to the GIFT Nifty trading around 22,554 earlier this morning, indicating a subdued start.
Q: What factors led to the decline in U.S. equities on Tuesday?
A: U.S. equities declined due to investor concerns over the economic impact of recent tariff threats, leading to significant losses across major indices.
Q: How have recent U.S. tariff policies affected global markets?
A: The doubling of tariffs on Canadian steel and aluminum imports has heightened fears of a recession, causing
For more market insights, follow our news.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like MoneyControl, ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.